Economic Development and Presence in Global Markets usintg Analysis of comparative Advantage of iran products (case study of Almond product)

For close to two centuries now the comparative advantage hypothesis has been used as one of the principal explanations of international trade and, through gains from trade, as one of the most potent explanations of higher incomes and income growth rates of economies. The theory of comparative advantage indicates that specialization according to comparative advantage is a precondition for reaping gains from trade and jumping toward economic development. Considering importance of Iran presence in the World Trade Organization(WTO) and production management of domestic products toward economic development, this study aimed to investigate the potential of export and production of Iran against rival countries in the world and how it can move forward. Thus, this study focused on Almond product which is so important for Iran and it was predicted that Iran and some provinces like Northern Khorasan have a potential to produce and export this product in the global level. The results of this study showed that how comparative advantage models can help countries to figure out of their status in the global markets and how they can improve to access more international markets. For this purpose, Scale Advantage Index (SAI), Efficiency Advantage Index (EAI), Aggregative Advantage Index (AAI), Revealed Comparative Advantage (RCA) and Revealed Symmetrical Comparative Advantage (RSCA) of Almond product were estimated for Iran and other rival countries during 1961-2007. Also, in this study, country situation has been analyzed in comparison with rivals. The results of this study showed that there is a scale advantage in producing almond in Iran country and the trend of this index has been ascendant during these years. Estimation of RCA and RSCA index for almond expresses that country situation in the world markets has been weekend during studied years and the trend of these two indices has been descendant. Also, based on estimating correlation coefficients of export advantage in the world markets, it was cleared that the most important rival of Iran in the world markets is USA. Also export advantage of Iran almond has had positive relation with import advantage of Canada and with Britain. Finally, according to results, it was suggested that to preservation of current global markets and moving toward economic development, the quality of production and export of almond product improve by creativity and entrepreneurship in packaging process, quality management of product and access update information about other rivals in the world by powerful information system management.

Keywords:

Comparative Advantage , Economic Development , Global Markets , Rival Countries