Determination of comparative advantage of main crops in the Khuzestan province
2003
Rahmani, Rohham
Khuzestan province is one of the agricultural poles in Iran. It would be a main center of production and export of agricultural crops, if a suitable planed investment used in the agricultural sector. A delicate attention to the comparative advantage of crops is an important aspect of economic planing. In this research comparative advantage of the main crops such as wheat and barley (irrigated and rainfed), rice, corn, sugarbeet, watermelon, tomato, onion, potato and cucumber were studied in 1998-1999. Two groups of indices were used. The first one includes Net Social Profitability (NSP), Domestic Resource Cost (DRC) and Social Cost – Benefit (SCB) ratio. Absolute and relative power purchasing parity (ppp) price used to determined the mentioned indices. The second one includes Efficiency Advantage Index (EFI), Scale Advantage Index (SCI) and Aggregate Advantage Index (AAI). Based on the first group of indices and absolute ppp wheat and barley (irrigated), corn, rice, sugarbeet, watermelon, cucumber and tomato had comparative advantage in production and trade. The others had no comparative advantage. In addition to the above crops potato had a comparative advantage, using relative ppp. Based on the EAI index sugarbeet, watermelon, cucumber, potato, onion, tomato and rainfed wheat had comparative advantage in yield. The others had no comparative advantage in yield. SAI was more than one in wheat ( irrigated and rainfed). It showed the extent of concentration of wheat in the region relative to that at national average was more. The other crops showed vice versa. AAI was also more than one only in wheat (irrigated and rainfed). It means that the wheat in the region had a comparative advantage over the national average and vice versa for the others.
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