The Comparative Advantage of Cereal Products In Kerman Province

Document Type : Research Article

Authors

• L. Shafiee ¹
• S. Yazdani ²

¹ Agricultural Research Center Kerman Province

² Department of Agricultural Economics, Faculty of Agriculture, Tehran University

10.22067/jead2.v1389i4.8192

Abstract

Abstract
In 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.

Keyword: Comparative advantage, Effective production rates, Domestic Resource costs, Social cost- Benefit ratio

20.1001.1.20084722.1389.24.4.5.4

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