A comparative advantage analysis of fishing sector and its impact on Iran’s economic development

Document Type: Research Paper

Authors

1 Associate professor of agricultural economics

2 Ph. D. of agricultural economics

3 Assistant professor of agricultural economics, Faculty of agricultural sciences, University of Guilan

Abstract

The purpose of this study is to evaluate the value added of comparative advantage for fishing sector and its impact on economic development of the provinces in Iran in the period 2000-2014.  At first the comparative advantage of any province of country was calculated. Then, the effects of fishing comparative advantage on economic development were studied using the generalized Solow model. The model study is based on empirical analysis such as panel unit root tests, panel co-integration test panel and it’s estimation of long-term relationships to help least-squares estimators modified (FMOLS). The results showed provinces of Hormozgan, Sistan and Baluchestan, Tehran, Guilan, Golestan and Mazandaran always had the comparative advantage during the study period. Also there was a cointegration long run relationship between variables that showed the value added of comparative advantage for fishing had a significant negative effect on economic development. So that for every unit increases in comparative advantage of this sector the economic development decreased 0.033 %. This could be due to more important role other economic sectors than fishing sector on the economic development of the provinces and the lack of expertise of comparative advantage in fishing sector. Finally suggestions were presented such as investment priority in the provinces where they have comparative advantage in the fishing sector and investigate the problems in the provinces that comparative advantage of them has decreased over time.

Keywords