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Paper Information

Journal:   IRANIAN JOURNAL OF TRADE STUDIES (IJTS)   FALL 2007 , Volume 11 , Number 44; Page(s) 235 To 265.
 
Paper: 

MEASUREMENT OF IRAN'S LEATHER INDUSTRY COMPARATIVE AND COMPETITIVE ADVANTAGES IN WORLD MARKET

 
 
Author(s):  HOSSEINI S.SH., MALEK MOHMMADI CHEHEL KHANEH M.
 
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Abstract: 

In this paper, Iran's leather industry advantages are evaluated. Indices of advantages including DRC RCA, TM and CMS are computed for hide, leather and leather products (shoes and clothes).
 Findings indicate that Iran benefits from advantage in export of hide (main raw material of leather industry). As national policy in leather industry is to export higher value added products, then indices show that Iran is gradually exiting from hide market.
DRC index in leather reveals that, Iran potentially has an advantage, and RCA index in recent years approve that the potential advantage is used and Iran benefits from comparative advantage in leather production. TM index indicates that Iran has joined the winner group in leather market, but as this market has been deteriorating before, then market recognition and enhancing of competitive advantage factors become more important. CMS analysis shows that Iran's advantage in leather market can not be considered sustainable. This problem, besides market deterioration relates to improper selection of markets and negative competitive effect.
Leather clothing export is increasing, but as RCA is less than unit, this means that Iran encounter with lack of advantage in leather clothing. TM indicates that this market is deteriorating and competition becomes complicated. CMS index is negative in most selected countries.
 Finally, Iran's leather industry export is increasing but is far from sustainable and competitive advantage, especially for higher value added products. To fulfil the above mentioned gap, policy makers should pay more attention to competitive advantage factors such as technology, research and marketing

 
Keyword(s): COMPARATIVE ADVANTAGE, COMPETITIVE ADVANTAGE, ADVANTAGE INDICES (DRC, RCA, TM AND CMS), IRAN'S LEATHER INDUSTRY
 
References: 
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  Persian Abstract Yearly Visit 295
 
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