Agricultural Economics and Development

Agricultural Economics and Development

Comparison of competitive situation in production and export of Iranian apple with OECD countries (Case study: selected cities fromWestern Azerbaijan province (2003-2005))

Document Type : Original Article

Authors
KH Nasrollahi 1
Z. Nasrollahi 2
H. Shajari 3
M.R. Forootan 4
1 Assistant Pro., Isfahan Un., Isfahan, Iran (Corresponding Author)
2 Assistant Pro., Yazd Un., Yazd, Iran
3 Associate Pro., Isfahan Un., Isfahan, Iran
4 Ms Student in Isfahan Un., Isfahan, Iran
10.30490/aead.2009.126309
Abstract
Iran usually claims to have comparative advantage in horticultural products. Appraisal of this in relation with target markets like OECD countries is important especially when England is one of the main importers of Iran's apples. This study examines the hypothesis on horticultural activity Azerbaijan province for apple production in selected cities (Oroumia, Khoy and Salmas of West Azerbaijan province). It provides a theoretical frame work for the analysis of the comparative advantage through Domestic Resource Cost Method (DRC). The impact of exchange rate and shadow price change of land and irrigation water on comparative advantage of apple production activity were assessed. The results showed that DRC is sensitive to changes in exchange rates, shadow price of land and, irrigation water. These factors have a great effect on comparative advantage of the region. The results also show that among those selected cities, 
Oroumiah has comparative advantage in horticultural production, so this sector is expected to play much important role in the future of the region.