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The Determination of Relative Advantage of Tea in Gilan Province
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Hamid Fotuhi *   |
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Abstract: (16094 Views) |
| With a population of about 1 percent of the World population, Iran consumes about 5 percent of the world tea consumption. Iranian per capita consumption is 1550 grams of which 50 per cent id produced domestically and the rest it being imported. This paper attempts to examine the relative advantage of tea production in Gilan province. The related data refers to the period 1381-82. The three criteria used in determining the relative advantage of tea in this province are the Net Social Profit (NSP), Domestic Resource Cost, and Social Cost-Benefit (SCB). Calculation of the Shadow price is based on relative Purchasing Power Parity (PPP), absolute Purchasing Power Parity, and the Fao Method. The results show that the Gilan province has relative advantage if compared to India and United Arab Emirates as tea exporters to Iran. Moreover, as compared to Britain, Tajikistan, Turkmenistan, Uzbekistan, Afghanistan and Uganda, the Gilan province has relative advantage regarding the tea exports. |
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| Keywords: Relative Advantage, Tea, Net Social Profit (NSP), Domestic Resource Cost, Ratio of Cost to Social Benefit, Shadow Price, Foreign Exchange |
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Full-Text [PDF 166 kb]
(2700 Downloads)
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Type of Study: Research |
Subject:
General
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