An Investigation of Comparative Advantage of Agricultural Production based on Biotechnology (Case Study: Wheat and Corn in Fars Province)

Document Type : Research Paper

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Abstract

Nowadays due to the limited existing resources of the country, the use of modern technologies has an important role in saving inputs consumption, increasing productivity and gaining a comparative advantage in agricultural production. In this regard, biotechnology has particular importance. Considering the importance of the issue and the lack of study about the effect of applying biological technologies in comparative advantage of agricultural production, so this research to determine indexes comparative advantage of production with biotechnology entry in the field of wheat and corn production in Fars Province is done. Accordingly, based on available information from variety biological fertilizers and its different combinations with chemical fertilizer the indexes of comparative advantage including DRC, SCB and NSP in 1392 are calculated in several scenarios. The results indicate that the use of bio fertilizer as a supplement or replacement with part of chemical fertilizer (50% & 100%) will improve the comparative advantage indicators, so that the DRC index of wheat reduced from1/13 in scenario (1) to 0/49 in scenario (4). Also about corn the combination of bio-fertilizer with chemical fertilizer leads to decrease DRC index from 0/28 in scenario (1) to 0/15 in scenario (4). Also SCB and NSP indexes have shown the comparative advantage improvement in wheat and corn production due to this replacement. Therefore, according to the results the use of biotechnology in consolidated management of nutrition will improve the changes in the production cost practically. So it is expected to be more economical to promote such technology in production process of agriculture.

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