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Determination of target Exchange rate for the comparative advantage of Iran crops (A Case of Sari Township)

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  • Pakravan, Mohammad Reza
  • Kalashami, Mohammad Kavoosi

Abstract

In this paper, the value of exchange rate was calculated in order to determine comparative advantage in crops of Sari Township during 2009-2010. Hence, first, comparative advantage indices are estimated by using a policy analysis matrix. The results showed that just wheat has a DRC index of one in the minimum amount of national currency exchange rate value. This indicated the fact that only wheat, compared to Rice, Soybean, Canola and Barley in this region, can compete with global markets and had a social profitable production system. Therefore, it is recommended that executive policies, which make competitive ability in wheat, should also be applied for other products.

Suggested Citation

  • Pakravan, Mohammad Reza & Kalashami, Mohammad Kavoosi, 2011. "Determination of target Exchange rate for the comparative advantage of Iran crops (A Case of Sari Township)," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 1(2), pages 1-6, June.
    • Handle: RePEc:ags:ijamad:143499
    DOI: 10.22004/ag.econ.143499
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    References listed on IDEAS

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    2. Cheng Fang & John C. Beghin, 2000. "Food Self-Sufficiency, Comparative Advantage, and Agricultural Trade: A Policy Analysis Matrix for Chinese Agriculture," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 99-wp223, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. John McIntire & Christopher L. Delgado, 1985. "Statistical Significance of Indicators of Efficiency and Incentives: Examples from West African Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 733-738.
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    Keywords

    Political Economy; Risk and Uncertainty;

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