Abstract

This paper presented an examination of Balassa’s ‘revealed comparative advantage’ (RCA). The results of the research showed that using the RCA should always be attuned in such a way that it becomes symmetric.This paper consisted of three major sections: The theoretical section, the analytical tool and the case studies of comparative advantage’ (CA). First, we evaluated the theory and various empirical measures. Then, the analytical tool was applied for the analysis of exported products. The results indicated that Iran had not had CA in the export of walnuts, almonds,hazelnuts, apples andoranges. To increase competitiveness, we suggested several policy recommendations such as increasing agricultural productivity, promoting the development of indigenous technological capabilities, and reducing the cost of doing business. The conclusion was based on a theoretical discussion of the properties of the measure and on convincing empirical evidences according to the Balassa index. The index for 2007 illustrated that Iran had not possessed a CA in the export of walnuts, almonds, hazelnuts, apples and oranges andconsequently had reduced its market share in these products. 

Key words: Revealed comparative advantage, iran’s agriculture sector, almonds, apples, hazelnuts, walnuts, oranges.