Comparative Advantages of Walnut Production and the Government Policy In Hamedan Province

Suitable weather and environmental conditions have provided a considerable share of agricultural activities next to Industrial and services in Hamedan province of Iran which is very important for sustainable rural development of the area. This study aims to determine the comparative advantage of walnut production in Hamedan province of Iran.¬ The policy analysis matrix model (PAM) has been used to measure the comparative advantage of walnut product for the agricultural year of 2008-2009.The research founded the existence of indirect taxation on outputs from one hand and indirect subsidy on tradable inputs on the other hand. That means the government could not effectively support the policy of import substitution policy of walnut in the state. Whereas, the domestic resource cost index shows existence of comparative advantage of walnut production in the area.