Determining the Comparative Advantage of Food Industry in East Azerbaijan Province (Based on indirect productive advantage and commercial advantage)

Abstract

Proper economic policy making and planning in every country require knowing its possibilities and capabilities of production. This study investigates the condition of the food industry of EastAzerbaijanProvince and evaluates the comparative advantage in the major subbranches of this industry. To do this, with the use of the tenfold branches of comparative advantage within the industry, the production ability of every subbranches is investigated in order; then, with the help of LQ index and its results, release ability is ranked indirectly. Ultimately, with the help of primary factorizing technique followed by the use of numeral taxonomy, the final ranking of the subbranches and their condition in terms of comparative advantage in the mentioned industry is prepared. Finally, with regard to the results of LQ index and with the help of spider diagram, the rate of the structural transformations of the province’s food industry within the years 80-85 is also shown.

Keywords

• comparative advantage
• productive and commercial advantage
• regional programming
• world trade