Abstract
This paperassessed the comparative advantage of walnut production in Iran and determined that how farthe current set of policies is consistent with the comparative advantage. The domestic resource cost (DRC)has been applied. DRC method relies on production cost data to compare efficiency. Distortions may require the estimation of shadow prices to reflect true social opportunity costs but, when adjusted, the country that has the lowest DRC has a comparative a dvantage. The DRC method is dynamic, providing useful information to decision -makers. However, DR Cwere used for the analysis ofdata for the five harvesting years, 2007 -2008 to 2011-2012. The analysis was carried out in the context of Policy Analysis Matrix (PAM). The Domestic Resource Cost (DRC) analysis for Iran concluded that Iran had comparative advantage in producing walnut for the study period.
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