Evaluation of Comparativ Advantage in the Wood Products Industry in Iran

Abstract

Economists believe that the development of the industry sector is for the benefit of other sectors of the economy. In 23 groups of industrial activity in classification ISIC, the production and export of wood industries have received less attention in developing countries. exports of wood products have a major impact on the GDP and provide employment and sustainable development of natural resources.<br /> In this study, the comparative advantages of wood and its sub-sectors in the economy of Iran has been analyzed over the period of 1999-2011. Auto Regressive Distributed Lags Method was employed to investigate the analysis of the dynamics of revealed comparative advantage of wood industry and its sub-sectors in the Iran's economy.<br /> The results show that the wood industry in the period studied have no comparative advantage and the value added of the industry, export, physical and human investment and labor have a positive effect on the dynamics of comparative advantage in the long term. In short term, labor, human capital and the value added have a negative effect on the dynamics of revealed comparative advantage, and physical capital also has an insignificant effect on increasing the revealed comparative advantage.<br />