Investigation Competitive Advantage of Two Medicinal Plants..

Document Type : Original Article

Authors

1 MSc. of Agricultural Economics, Iranian Academic Center for Education, Culture and Research, Khorasan Razavi, Mashhad, Iran

2 Assistant Professor, Khorasan-e-Razavi Agricultural and Natural Resources Research and Education Center, Agricultural Research, Education and Extension Organization (AREEO), Mashhad, Iran

3 Instructor, Khorasan-e-Razavi Agricultural and Natural Resources Research and Education Center, Agricultural Research, Education and Extension Organization (AREEO), Mashhad, Iran

Abstract

Two medicinal plants Damask Rose and Cumin are in priority for extensive cultivation in Khorasan Razavi province due to their low input, especially in water consumption. In this study, the export market of these two medicinal plants has been studied with the help of documentary data during the years 2000-2018. The research method is analytical and descriptive and to examine the competitive advantage, comparative advantage and market structure have been used respectively ; Revealed Competitive Advantage index (RCA), Internal Resource Cost index (DRC) and Herfindahl index (HI). The results showed Cumin and Damask Rose products have a DRC index of less than one and both of them have a comparative advantage. Competitive advantage analysis showed that in Cumin, RCA index is greater than one in all years, but in Damask Rose RCA index is between zero and one, so Cumin has a competitive advantage and Damask Rose has no competitive advantage. Examination of the market structure showed that in cumin "in contrast to Herfindahl index" (HI / 1) has the number 3.33 and in Damask Rose has the number 4.55 and these numbers are between 3 and 6. Therefore, the conditions of multilateral monopoly are located in this market. It can be concluded that both products have a comparative advantage in the province and there is a possibility of their extensive cultivation. Also, the extensive cultivation of these products requires the acquisition of new markets with the help of the improvment of processing of these two plants in the province.

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