Mohammad Reza Ghanbari
Caspian horse an ancient small breed, was lost for centuries, and only depicted on the walls of the ancient palace of Persepolis, It was rediscovered almost 35 years ago in the northern part of Iran. These few petite wild horses were the remnants of the Royal horses that had once pulled the chariots of Persian Kings and were beloved of the Royal families. This breed with many unique economic characteristics has been popular and beloved around the world in a very short time. This paper is concerned with the economic analysis of Caspian horse breeding and raising in the northern pastures of Iran, using Domestic Resource Cost (DRC) index. The DRC was evaluated for horses in different ages such as six month, twelve month and three yeas. The DRC was evaluated to be 0.16, 0.2, and 0.34 respectively. Since (DRC) values less than one indicates a significant comparative advantage for trade, therefore a relatively high advantage has been calculated. Sensitivity analysis with respect to price and exchange rate shows that given the fixed exchange rate, any price higher than $ 688.2 and assuming fixed price , any exchange rate higher than 1928 Rials , breeding and raising Caspian horse would be a profitable businesses.
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