Investigation of Comparative Advantage and Supporting Policies of Date in Kerman Province

Authors

• F. Shirani Bidabadi
• R. Jolaie
• H.R. Yousefzadeh

Abstract

Comparative 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. Iran is one of the main producers of dates. Thus, study of Iran’s comparative advantage in production of dates is very important from the stand point of de facto production. This study used Policy Analyses Matrix (PAM) and Domestic Resource Cost (DRC) for calculating the comparative advantage of date in Kerman province. For investigation support policies PAM indices were used. Amount of DRC index for date was 1.8 that demonstrated comparative disadvantage for this product. Nominal Protection Coefficient (NPC) index was 1.05 that indicated domestic policies increased farmer's income to the level which is above international prices. Nominal Protection Coefficient of Input (NPCI) index showed the effect of government policies on input prices. This index was 0.60 for Kerman date that showed government paid input subsidy to farmers. Effective Protection Coefficient (EPC) index was an index which showed outcome of government policies regarding both input used by the farmers and farmers' income. This index was 1.23 for Kerman date , that indicated government support for the product
 

Keywords

• Comparative Advantage
• Effective Protection Coefficient
• Domestic Resource Cost
• Date
• Kerman

20.1001.1.20086407.1390.3.10.6.3

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