The Comparative Advantage Analysis in Automotive Industry and It's Parts

One of the effective elements in finding the appropriate outward oriented strategies for each country is having the comparative advantage in the production and export of goods. In this regard, numerous indices have been raised by economists, to measure comparative advantages of different countries. Balasa’s revealed comparative advantage index is one of them, which emphasizes on the export comparative advantages. This paper not only attempts to present theoretical foundations of these indices, but also to measure the revealed comparative advantages of Iran’s automobile industry. The results of this study indicate that Iran does not have export comparative advantage in automotive industry.