Determining Comparative Advantages of Corn in an Optimal Cultivation Pattern in Khuzestan

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Abstract

Comparative advantage of corn in comparison with other competing crops was investigated applying Linear Programming, to 2004-2005 data related to classic index (DRC) in Khuzestan. Results showed that corn benefits from a comparative advantage in all cities of Khuzestan province with acreage having been increased in the cultivation pattern of 37.5 % of the cities. In addition, comparing optimal cultivation pattern as resulted from linear programming models with crop ratings, based on comparative advantage indices indicated that restrictions, availability of resources, variable cost of tradable and non-tradable inputs as well as yield will lead to comparative advantage in production shift from one crop to another. Such factors such as supporting policies, rotation, resource constraint and exchange rate might also have their own effects on comparative advantage combination and on optimum cultivating quantity.

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