Studding the Condition of Revealed Comparative Advantage in Subsection’s of Iran’s Textile Industries and its Global Position

Pages:76-79
Mehrdad Fazli, Masoud Nonejad, and Ali Haghighat (Department of Economy, Shiraz Branch, Islamic Azad University, Shiraz, Iran)

The purpose of this paper is to estimate and analysis the effective elements on the process of the relative comparative advantage changes appeared from the subsections of the textiles industry of Iran and to determine its universal place from. The criteria for identifying the relative comparative advantage in this paper include the index of relative comparative advantage (RCA). the index of employ end location quotation (LQ) EMP), the index of value added location quotation. The necessary information was obtained of the large numbers of the country through the management and planning organization of Fars province , the sciences and technology library, Fars General Customhouse, Fars General Business Office, The Center of Iran Statistics, The Business Studies and Researches Agency, the internal and external economic web sites such as WTO, Undo, Google, Yahoo, Msn, AltaVista, and, etc. referring to some of master’s theses, some of international economic books, statistical yearbooks of the country custom exports. The outline of the obtained results is as follow: The country textile export (x1) has a positive effect on the index of relative comparative advantage (RCA). The country industrial export (x2) also improves the index of relative comparative advantage (RCA). The world textile export (x3) has a negative effect on the index of relative comparative advantage (RCA). The country textile investment (x5) improves the index of relative comparative advantage (RCA). The total industrial investment (x6) has a negative effect on the index of relative comparative advantage (RCA). The total industrial value added (x8) has a negative effect on the index of relative comparative advantage (RCA). The country textile value added (x7) has a negative effect on the index of relative comparative advantage (RCA). The unavoidable costs or data values (x9) decreases the index of relative comparative advantage (RCA), but the real exchange rate (x10) improves the index of relative comparative advantage (RCA). Revolutions variable (that is a Dummy Variable) has a negative effect on the index of relative comparative advantage (RCA). The trend variable increases the index of relative comparative advantage (RCA). This analysis is eluded based on the normalized numbers of vectors.