Investigating the Comparative Advantage of Oilseeds Production in Kerman Province

In the present study, it was studied whether oil seed (canola, safflower, and sesame) production had any comparative advantage in Kerman province (a case study of cities of Bardsir, Bam and Orzoeiyeh) using two recognition indexes of comparative advantage in 1389-90. The first set of indicators consisted of Social Cost Benefit, Domestic Resource Cost and Net Social Profit and the second setwere Efficiency Advantage, Scale Advantage and Aggregative Advantage Indexes. Based on both absolute and relative shadow exchange rates, only safflower in Bam had the comparative advantage. Based on the second type of indicators, the average performance or efficiency of canola and other oilseeds crops in Kerman province was more than those of the country's average. However, the degree of centralization did not show farmer's preference to grow these crops. The calculated protection coefficients showed that excluding safflower crop, subsidies were paid indirectly to produce other products and as a whole, the government has supported the production of canola and sesame. The policy analysis matrix for all products showed that there was market profit for the producers in the domestic market, in addition, safflower growers have benefited from operating in the free trade.