Investigating the Government's Support Policies with Policy Analysis Matrix Method: Case Study of Potato in Hamedan Province

Document Type : Research Paper

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Abstract

This study is to investigate government support policies in potatoes production and export with Policy Analysis Matrix (PAM) method during 2001-2006 in Hamedan province. The result indicates that government policies in input and output market, support potato product which exhibited comparative advantage during 2001-2002 and indirect subsidy has been set on this crop. Whereas during 2003-2006 had a high comparative advantage and tax was charged on this crop. Moreover this has been indicated that indirect tax in 2001 and subsidy in 2002-6 have been set on tradable input. Base on RCA and RSCA`s method, Iran has comparative advantage in potatoes export during 1999-2006. The Michaely index results show that Iran is going to be specialized in producing this crop.

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