The Comparative Advantage of Cereal Products in Hamedan Province
2002
Jafari, Ali Mohammad
Cereal products, especially wheat, are strategic products that have base role in food security of people in Iran. After Islamic Republic victory, governments have tried to earn self-sufficient in the production of them, but the import of creals have increasing rate. This paper questions about comparative advantage of these products in different areas of Harnedan province. The Domestic Resource costs (DRC), and Social Cost¬Benefit(SCB) ratios were used to determine Hamedan's Comparative advantage in the production of wheat, barely, and corn far 1378/79 Cropping Season. The results indicate that Irrigated wheat, rainfed wheat, Irrigated barely, Rainfed barely, and com have comparative advantage in Razan, Asadabad, kaboodrahang, Touiserkan and Nahavand under existance condition, respectively. The DRC and SCB ratios are sensitive to changes in exchange rates and yields, A change in the exchange rate have a great effect on the comparative advantage of an enterprise. The production of cereals may not be efficient under current technology but may be efficient with the introduction or development of new technology and Increasing Yields. There is not comparative advantage in cereal products in Hamedan province, but comparative advantage based specialization is beneficial to trading under free trade conditions.
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