Application of Policy Analysis Matrix (PAM) in Evaluation of Competitiveness and Readiness for WTO Accession of Iran's Food Industries: Case Study of Company in Dairy Industries

While export comparative advantage and potential abilities of national firms (in particular food industries) have been approved in miscellaneous studies, their confrontation of circumstances concerning WTO accession is considered as one of the most important challenges of Iran’s economy. The paper aims at presenting a model for assessment and measurement of firms’ competitiveness and level of readiness for WTO accession based on Policy Analysis Matrix (PAM). This method provides the possibility of evaluation and analysis of accurate indices for assessing and analyzing advantage and competitiveness of each firm’s products separately by means of each firm’s most valid information. Six product Company  of the dairy products industry were evaluated because Providing voluntary of financial and accounting information. The results showed that according to DRC and SCB indices, except Pasteurized High Fat 946 cc Milk, all products of Company  have comparative advantage. Values for UCx index for the aforementioned 6 products reveal that all products of Company  (except Breakfast Cream) are competitive (in terms of cost) in international markets. In addition, results for NPCI and NPCO indices show that producers of these products pay indirect taxes someway.