Evaluating the Economic Effects of Cotton Research under Closed and Open Economy Scenarios in Razavi khorasan Province of Iran

The stability of the cultivation and production of cotton or any other product requires its competitiveness with other agricultural products in the region. Therefore, research is one of the determinants of competitiveness of agricultural products. This study aimed at evaluating the economic impacts of cotton breeding research in Razavi Khorasan province of Iran under two scenarios of small open and closed economies. For this purpose, two categories of data related to technology (average yield increase, supply curve displacement parameter, research success probability, depreciation factor) and market (research costs, product price, supply price elasticity and discount rate) of cotton breeding research projects terminated during 2015-2019 in Razavi Khorasan Agricultural Research and Training Center were used in an economic surplus analysis method. Based on the results, under the scenario of small open economy, the average net present value of benefits, internal rate of return and the ratio of profit to cost of each breeding research were predicted and evaluated 12718000 thousand IRI rials, 55 percent and 7.6 and under the scenario of small closed economy, 9134351 thousand IRI rials, 50 percent and 5.7, respectively. These values ​​indicated the high efficiency and acceptable economic profitability of cotton breeding research under both scenarios, but the study results and findings indicated that the interaction and presence in global cotton markets would increase the benefits and distributive effects of agricultural research and cotton competitiveness in Razavi Khorasan province. Therefore, in agricultural research policy making, the degree of interaction of the country's economy with global markets should be considered.