Agricultural Economics
M. Haji-Rahimi; P. Alizadeh; F. Sharifi
Abstract
The broiler chicken industry is a vital agricultural subsector in Kurdistan Province, Iran, with 716 production units in the province and a 5% growth from 2019 to 2024. However, there is no study to evaluate the comparative advantage indices or competitive capacity of broiler chicken production in Kurdistan ...
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The broiler chicken industry is a vital agricultural subsector in Kurdistan Province, Iran, with 716 production units in the province and a 5% growth from 2019 to 2024. However, there is no study to evaluate the comparative advantage indices or competitive capacity of broiler chicken production in Kurdistan Province. This study aims to assess these factors using the Policy Analysis Matrix (PAM) for 2023. Findings indicate that Kurdistan Province has a comparative advantage in broiler chicken production, as shown by the Domestic Resource Cost (DRC) ratio and Social Benefit-Cost Ratio (SBCR), across all production capacities. The Nominal Protection Coefficient (NPC) for the product reveals that the market price of live broiler chicken is lower than its shadow price, effectively imposing indirect taxation on producers. Conversely, the NPC for inputs shows that input shadow prices exceed market prices, suggesting indirect subsidies for poultry inputs. The Effective Protection Coefficient (EPC), which combines these effects, indicates effective government support for the industry. Competitiveness indices suggest that broiler chicken production in Kurdistan Province is viable both domestically and internationally. The findings suggest that the broiler chicken industry of Kurdistan could compete in regional markets, particularly Iraq market, even without supportive policies in form of input subsidies, provided price suppression is eliminated and market-based pricing is implemented. Thereby, this study suggested transitioning from interventionist policies to establishing a transparent and competitive market infrastructure to ensure sustainable growth in broiler chicken production.
Agricultural Economics
H. Mohammadi; A.R. Sani Heidary; A. Shahraki
Abstract
A suitable marketing strategy is essential for increasing sales and profitability at different stages of the product life cycle. The main objective of this study was to assess the factors that affect the choice of marketing strategy at various stages of the product life cycle in the food industry in ...
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A suitable marketing strategy is essential for increasing sales and profitability at different stages of the product life cycle. The main objective of this study was to assess the factors that affect the choice of marketing strategy at various stages of the product life cycle in the food industry in Mashhad, Iran. Data were collected in 2017 through a survey which 88 marketing managers in the food production industry completed the questionnaires. To reach the goal of the study, the multinomial logit model was applied to determine the effects of explanatory variables on the probability of choosing a special marketing strategy at the various stages of the product life cycle. Results showed that the manager’s experience, education, type of product, competitiveness, reputable brand, and market share had a significant effect on the chosen strategy at different stages of the product life cycle. Therefore, a company’s profitability in a market could be improved by the implementation of a marketing strategy based on product type and in relation to the specific stage of the product life cycle.
Hiva Rahiminia; B. Akbari Moghadam
Abstract
Introduction: The limitations regarding production factors as well as the increasing global markets requirements have increased the importance of products competitiveness. Despite its potentials for export including easy access to Iraq's market as well the availability of important resources of agricultural ...
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Introduction: The limitations regarding production factors as well as the increasing global markets requirements have increased the importance of products competitiveness. Despite its potentials for export including easy access to Iraq's market as well the availability of important resources of agricultural products, Kurdistan province in Iran has failed to make progress in terms of production and exporting agricultural products. Iran's Kurdistan Province has the important water and labor sources of Agricultural products. Kurdistan share of Iran's Agricultural products export is nearly 1.5 percent. Kurdistan province must recognize its comparative and competitive advantage to increase its competitiveness in international market. Comparative and competitive advantage are used to explain the tendency of countries to export or import commodities. We have used a combination of different indicators to explain the competitiveness of agricultural products in Kurdistan province.Materials and Methods: The international competitiveness is a challenging phenomenon that has become increasingly important in today's world. Some economic theory emphasizes that change in comparative advantage should be a reflection of changes in the endowment and factors of products. Others attribute the major cause of world trade fluctuations to the technology gap, production factor and domestic costs. Institutional quality and human capital are the factors affecting world trade. Evidences that production and exports become more diversified-not more specialized- as per capita income rises has been interpreted to suggest that comparative advantage does not evolve as theory predicts and has been taken as a basis for a revival of industrial policy in developing countries.This paper uses the Normalized Revealed Comparative Advantage (NRCA) and Constant Market Shares (CMS) indices to analyze the competitiveness of agricultural products of Kurdistan province for the years 2010-2016. CMS index is combination of three indictors: goods effects, market effects and competitiveness effects. These indexes are calculated for 32 agricultural items with relevance to the agricultural sector. The relevance basis for the classification of 32 agricultural items is the Harmonized Coding and classification system (HS).Result and Discussion: The results show that Kurdistan province has the comparative advantage between 16 agricultural items comparing to other Iran' provinces. Among those 16 agricultural items, apple, tomato, cucumber, lettuce, other vegetables, pepper, potato, watermelon and eggplant have a high comparative advantage with the NRCA index by more than 0.0005. In the other words, the CMS index indicates the revealed competitive advantage of Kurdistan province in 8 agricultural items. These consist of eggplant, strawberry, animals-meat, garlic, carrot, onion, lettuce and oil and fruit seeds. Kurdistan province cannot convert comparative advantage of important products to competitive advantage. These important products are apple, tomato, cucumber, lettuce, potato and watermelon.Results of market effect index emphasized that the Iraq market is appropriate for exporting products such as fresh animals, milk and dairy products, potato, piles and shallots, lettuce, carrots and turnips, cucumber, eggplant, currant, watermelon, dried fruits and grains. But Kurdistan province has not export advantage in all products. The results of this study suggested that it is beneficial for the framers in Kurdistan province to produce the products which have relative and comparative advantage and also try to move from comparative to competitive advantage.Conclusion: This paper offers empirical consistency among five indices of competitiveness advantage to examine Kurdistan province' international advantage in agricultural items in the previous seven years. The results show that Kurdistan province has comparative advantage in many of agricultural products, but it is not successful in creating competitive advantage in target market. Kurdistan province must try to convert its comparative advantage of products to competitive advantage to develop its share of target markets.
Gh. Dashti; P. Ghaderinejad
Abstract
Abstract
With consideration to the resource limitation, it seems necessary to design cropping pattern scientifically in order to increase productivity of production factors and to decrease production average costs. This studyaimed at identifying the optimum cropping pattern based on comparative advantage ...
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Abstract
With consideration to the resource limitation, it seems necessary to design cropping pattern scientifically in order to increase productivity of production factors and to decrease production average costs. This studyaimed at identifying the optimum cropping pattern based on comparative advantage in three counties of Ilam Province including Darreh Shahr, Ivan, and Shirvan chardaval. To calculate comparative advantage indexes, we used the dataset associated with the year 2011 . Moreover, linear programming approach was used to identify optimum cropping pattern. The results showed that the study counties do not have comparitive advategies in producing some of their products. . Comparing the linear programming results with the current situation, it is concluded that averagely 50 percent of the current products are acceptable based on the comparitive advantage index. Consequently, to economically adjust the current crop pattern, it is recommended to consider products with comparative advantege for each county.
M. Saei
Abstract
AbstractComparative advantage is one of the important economic criterions in production, import and export programming. In this survey, existence and nonexistence of the most important vegetables(potato, cucumber and tomato) comparative advantage in Jiroft aria in the year 1385-86 by use of two comparative ...
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AbstractComparative advantage is one of the important economic criterions in production, import and export programming. In this survey, existence and nonexistence of the most important vegetables(potato, cucumber and tomato) comparative advantage in Jiroft aria in the year 1385-86 by use of two comparative advantage recognition indexes was determined. The first indexes were Social Cost Benefit, Domestic Resource Cost and Net Social Profit and the second were Efficiency Advantage Index, Scale Advantage Index and Aggregative Advantage Index. By use of first indices, in the existent condition, cucumber and tomato had the comparative advantage. On the base of second indices, respectively, the yield mean of cucumber and tomato and concentration degree of cucumber, tomato and potato in relation to other crops in the region, was more than country average and indicated the preference of farmers to these crops cultivation. Calculation of protective coefficients and the Policy Analysis Matrix results showed that indirect subsidy was paid in potato production and in government intervention condition, market profit has been for potato and cucumber producers, more ever, productive system of cucumber and tomato had efficiency and cucumber and tomato producers in government intervention condition in compare to free trade had taken less profit. JEL classification: F13, Q17, Q18
R. Joolaie; M. Kazem Nejad
Abstract
AbstractComparative advantage is an economic term which is used to compare potential and actual production capacity of a country in a given commodity with the rest of the world. Therefore, researches in this field could have a dual approach. In one hand it could demonstrate country’s production ...
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AbstractComparative advantage is an economic term which is used to compare potential and actual production capacity of a country in a given commodity with the rest of the world. Therefore, researches in this field could have a dual approach. In one hand it could demonstrate country’s production capacity in the production of commodities that are not produced yet and in the other hand it can illustrate the de facto production of a commodity in a given country. This study used Policy Analyses Matrix (PAM) and Domestic Resource Cost (DRC) for calculating the comparative advantage. For investigation support policies PAM indices were used. Amount of DRC index for raisin is 0.78 that demonstrates comparative advantage for this product. Nominal Protection Coefficient (NPC) index is 0.59 that indicates domestic policies reduced farmer's income to the level which is less than international prices. Furthermore, these policies are against production of this commodity and government received implicit tax from producers. Nominal Protection Coefficient of Input (NPCI) index shows the effect of government policies on input prices. This index is 0.72 for Qazvin rasin that shows government pay input subsidy to farmers. Effective Protection Coefficient (EPC) index is an index which shows the outcome of government policies regarding both input used by the farmers and farmers' income. This index is 0.57 for raisin that indicates government does not support this product as far as input used by the farmers and their income is concerned.JEL: F14, Q18, Q17
M. Aghaei; M. Rezagholizadeh
Abstract
AbstractSaffron as Iran's red gold is the most valuable agricultural products and the most expensive spice in the world, and plays an important role in country's export and after pistachio, is the most important nonoil export product. In this paper, we investigate protection indexes, comparative advantages ...
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AbstractSaffron as Iran's red gold is the most valuable agricultural products and the most expensive spice in the world, and plays an important role in country's export and after pistachio, is the most important nonoil export product. In this paper, we investigate protection indexes, comparative advantages in production and competitiveness of Iran's saffron in the world’s markets applying PAM method on 2008 data.The counting of DRC and UCS shows that Iran has a high comparative advantage in saffron production. results imply that subsidy excise on the production factors, tax impose on the product and in general, excise a indirect tax on the saffron production value added. Also counting UCd and UCx indexes show that saffron has competitiveness in 2008. JEL classification: F40
L. Shafiee; S. Yazdani
Abstract
AbstractIn this research, the comparative advantage of cereals including: wheat, barley and corn in cities of Kerman, Bardsir and Baft was investigated by using Domestic Resource Cost (DRC), Social Cost Benefit (SCB) and Effective Protection Coefficient (EPC) index during 2005-2006 and effect of exchange ...
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AbstractIn this research, the comparative advantage of cereals including: wheat, barley and corn in cities of Kerman, Bardsir and Baft was investigated by using Domestic Resource Cost (DRC), Social Cost Benefit (SCB) and Effective Protection Coefficient (EPC) index during 2005-2006 and effect of exchange rate changes, price changes and products costs on comparative advantage, were investigated. Results show that Kerman doesn’t has comparative advantage on wheat production, Baft has comparative advantage on corn production and Bardsir has comparative advantage on barley production. Nominal input protection is positive for all crops. Protection of products market and effective production are positive for wheat, barley and corn.
A. Rezaee; A.H. Chizari; N. Nakhaei
Abstract
The goal of this study is to investigate government`s protective policies, comparative advantage of production & export of onion during 2000-2006 in Esfahan province. the PAM method is utilized to investigate government`s protective policies, DRC index is utilized to investigate production comparative ...
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The goal of this study is to investigate government`s protective policies, comparative advantage of production & export of onion during 2000-2006 in Esfahan province. the PAM method is utilized to investigate government`s protective policies, DRC index is utilized to investigate production comparative advantage & RCA & RSCA indexes are utilized to compute export comparative advantage. Results show that during all of the studied years, government supported input and output market but the onion’s product didn´t have production comparative advantage during all these years (except 2004). In 2000, 2001, 2005 and 2006 government supported this crop by allocating indirect subsidy to it, whereas in 2002-4 the policy was to impose taxes on this crop. Moreover tax was charged on tradable inputs in 2000 & 2001 and during 2002-6 subsidies has been set to these inputs. The results of RCA and RSCA indicate that Iran has had comparative advantage in onion`s export in 1999-2006 expect 2005.
Gh. Dashti; M. Khodaverdizadeh; R. Mohammad Rezaie
Abstract
AbstractNon-petroleum export expansion and export revenues diversification are some vital steps to reduce Iran’s development goals injuries. As for the importance of Iranian pistachios in its non-petroleum exports, the present study determines the comparative advantages and the global exports market ...
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AbstractNon-petroleum export expansion and export revenues diversification are some vital steps to reduce Iran’s development goals injuries. As for the importance of Iranian pistachios in its non-petroleum exports, the present study determines the comparative advantages and the global exports market structure of pistachios for 2002-2006. To calculate the comparative advantages of pistachios exporting countries, two indices, i.e., the Revealed Comparative Advantages (RCA) and the Revealed Symmetric Comparative Advantage were worked out. To find out the global exports market structure of pistachio the Herfindahl and Concentration ratio indices were worked out. The Results exposed that among pistachio’s exporting countries Luxembourg, USA, Syria, Netherlands, Cyprus, Slovakia, Greece and Jordan had comparative advantages. This shows an existing wide gap of Iranian comparative advantages indices as compared with that of others. Besides of that, the Iran’s comparative advantage in pistachio export was declining through the period. As regards with concentration, Iran was the dominant firm in global markets and owed 60 percent of market share, but its export prices were not desirable. To reinforce and stabilize the (RCA) of Iranian pistachios, more export differentiation policies and dwindling of market concentration based on a few external markets are recommended.
A. Karbasi; F. Rastegaripour
Abstract
AbstractIn this study the comparative advantage of wheat in Sistan was investigated by using DRC index and policy analysis matrix (PAM) during 2006-2007. Data were collected from Zabol Agri-Jahad organization and annual foreign trade database. The NPC index showed that there was an indirect tax on producers ...
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AbstractIn this study the comparative advantage of wheat in Sistan was investigated by using DRC index and policy analysis matrix (PAM) during 2006-2007. Data were collected from Zabol Agri-Jahad organization and annual foreign trade database. The NPC index showed that there was an indirect tax on producers in all sectors. EPC index represented that there were nonsupport of input and output market in the center sector, but showed effectiveness of government intervention in Miankangi and Poshtab sectors. The NSP index were negative in all sectors. Result supports this idea that Sistan has not comparative advantage in wheat production. But increase in yield, decrease in production cost and improve in cropping pattern are approaches for usefulness of wheat production in Sistan region.
