The analysis of water trade in Persian Gulf Countries

Abstract

During the recent years, water deficiency has been lead to innovation of modern techniques for saving water in countries which suffered from the shortage of water supplies. One of the notable concepts in this regards is the concept of virtual water trade in management of water supplies. The concept of virtual water trade is defined synonymously as the sum of the needed water for production of certain quantity of a product. Accordingly, prevention from exportation of products, which may lead to exiting water from the country and emphasis on importation of water-bearing products, is considered as one of the strategies which have been taken by some countries in the management of their own restricted water supplies. This strategy means that the water supplies of countries should be employed for manufacturing of the products, which are followed by further income economically. The present article is an innovation in calculating virtual water values by 6-digit SITC codes for all sectors of the economy in the selected countries (Persian Gulf countries). For each commodity code exported and imported in countries, the amount of virtual water (cubic meters per ton) is also calculated. In this regard, the rate of hidden water in imports and exports of the aforesaid countries during 2001 to 2012 is explored. The results reveal the fact that Iran has not taken any certain defined strategy regarding the management of water supplies by means of virtual water concept.<br /> <strong>JEL Classification</strong>: Q18, Q25, O13