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Comparative Advantages and Sustainable Development in Iranian Manufacturing Industries

Author

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  • Mohammad Ali Feizpour

    (Department of Economics, Management and Accounting, Yazd University, Yazd, Iran)

  • Abolfazl Shahmohammadi Mehrjardi

    (Department of Economics, Payame Noor University, Esfahan, Iran)

Abstract

This paper identifies the comparative advantage and the rank of the manufacturing industries of IRAN using traditional and environmental variables. To do so, in the first stage, manufacturing industries are ranked according to employment, value added and profitability and then air pollution indices are added into the analysis. The development levels of manufacturing industrie s are calculated using numerical taxonomy method at 2-digit industry levels. The results showed that the comparative advantage of Iranian manufacturing industries, regardless of the indices of sustainable development and when these indices are to be taken into account are distinct from each other. In the first stage, the manufacture of other non-metallic mineral products, nufacture of basic metals, manufacture of chemicals and chemical products and manufacture of food products and beverages are ranked highest in 2005 respectively. But when air pollution indices were added into the analysis, the manufacture of other non-metallic mineral products has lost its advantage. Thus, with regard to indices of sustainable development, the comparative advantage is not a sufficient indicator for ranking of industries in terms of their performance.

Suggested Citation

  • Mohammad Ali Feizpour & Abolfazl Shahmohammadi Mehrjardi, 2014. "Comparative Advantages and Sustainable Development in Iranian Manufacturing Industries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 18(1), pages 33-52, Winter.
    • Handle: RePEc:eut:journl:v:18:y:2014:i:1:p:33
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    References listed on IDEAS

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    1. Siegfried Bender & Kui-Wai Li, 2002. "The Changing Trade and Revealed Comparative Advantages of Asian and Latin American Manufacture Exports," Working Papers 843, Economic Growth Center, Yale University.
    2. Inka Havrila & Pemasiri Gunawardana, 2003. "Analysing Comparative Advantage and Competitiveness: An Application to Australia's Textile and Clothing Industries," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 103-117, March.
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    Cited by:

    1. Sinha, Avik & Bhattacharya, Joysankar, 2017. "Estimation of environmental Kuznets curve for SO2 emission: A case of Indian cities," MPRA Paper 100009, University Library of Munich, Germany.
    2. Esfahbodi, Ali & Zhang, Yufeng & Watson, Glyn, 2016. "Sustainable supply chain management in emerging economies: Trade-offs between environmental and cost performance," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 350-366.

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