The Comparative Advantage of Cereal Products In Kerman Province

In this research, the comparative advantage of cereals including: wheat, barley and corn in cities of Kerman, Bardsir and Baft was investigated by using Domestic Resource Cost (DRC), Social Cost Benefit (SCB) and Effective Protection Coefficient (EPC) index during 2005-2006 and effect of exchange rate changes, price changes and products costs on comparative advantage, were investigated. Results show that Kerman doesn’t has comparative advantage on wheat production, Baft has comparative advantage on corn production and Bardsir has comparative advantage on barley production. Nominal input protection is positive for all crops. Protection of products market and effective production are positive for wheat, barley and corn.