scholarly journals Economic Efficiency and Distortions to Incentives in Production of Cotton and Rice Crops in Punjab

2021 ◽  
Vol 2 (1) ◽  
pp. 29-49
Author(s):  
ABDUL SALAM ◽  
SADIA TUFAIL
Keyword(s):  
Economic Efficiency ◽  
Comparative Advantage ◽  
Domestic Market ◽  
Basmati Rice ◽  
Aromatic Rice ◽  
Effective Protection ◽  
World Markets ◽  
Resource Cost ◽  
Implicit Taxation ◽  
Domestic Resource

The study based on crop budgets, for 2010-12 crops, was, inter alia, designed to examine economic efficiency and distortions in incentives to production of cotton and basmati rice, long grain aromatic rice, crops in Punjab. The analysis has confirmed the competitiveness of their production in Punjab as farmers’ gross revenues from these crops exceeded their total costs, enabling farmers make some profit. The competitiveness, nevertheless, is sensitive to changes in prices of the produce and those of the inputs. The analysis conducted at economic prices have indicated economic efficiency and comparative advantage of Punjab in producing both basmati rice and cotton. The domestic resource cost coefficients for basmati as well as cotton were consistently less than one, confirming Punjab’s comparative advantage and economic efficiency in their farming. The estimation and analysis of nominal projection coefficients and effective protection coefficients for basmati and cotton crops have indicated implicit taxation as well as some protection to domestic producers. The results of economic efficiency and comparative advantage, of both basmati and cotton, are quite sensitive to the fluctuations and developments in world markets with spill over to the domestic market, impacting their competitiveness.

scholarly journals Comparative Advantage of Major Crops Production in Punjab: An Application of Policy Analysis Matrix

2011 ◽  
Vol 16 (1) ◽  
pp. 63-94 ◽  
Author(s):  
Muhammad A. Quddus ◽  
Usman Mustafa
Keyword(s):  
Comparative Advantage ◽  
Effective Protection ◽  
Export Prices ◽  
Profitability Analysis ◽  
Self Sufficiency ◽  
Resource Cost ◽  
The Given ◽  
Policy Analysis Matrix ◽  
Domestic Resource ◽  
Positive Support

This study uses data from 1999/2000 to 2004/05 to determine the relative efficiency of major crops (wheat, rice, sugarcane, and cotton) in Punjab (Pakistan) and their comparative advantage in international trade as measured by economic profitability and the domestic resource cost (DRC) ratio. An economic profitability analysis demonstrates that Punjab has a comparative advantage in the domestic production of wheat for self-sufficiency but not for export purposes. In basmati production, Punjab has a comparative advantage, and increasing Basmati production for export is a viable economic proposition. The nominal protection coefficient (NPC), effective protection coefficient (EPC), and DRC for Irri rice are more than 1: the given input-output relationship and export prices do not give Punjab a comparative advantage in production of Irri for export. Sugarcane growers did not receive economic prices (i.e. prices reflecting true opportunity costs) during 2001/02 and 2002/03 in an importing scenario, while in 2003/04, the NPC was 1.02, indicating positive support to sugarcane growers. The NPCs estimated under an exporting situation range from 1.33 to 1.99, indicating that the prices received by growers are higher than the export parity/economic prices.

scholarly journals Import and export parity price analyses of selected vegetables and spices in Bangladesh

2017 ◽  
Vol 42 (2) ◽  
pp. 321-341
Author(s):  
MA Rashid ◽  
MA Monayem Miah ◽  
Tanvir MB Hossain
Keyword(s):  
Comparative Advantage ◽  
Import Substitution ◽  
Cost Ratio ◽  
Net Return ◽  
Benefit Cost Ratio ◽  
Net Returns ◽  
Resource Cost ◽  
Parity Price ◽  
Benefit Cost ◽  
Domestic Resource

The study was undertaken to find out the export potentialities of selected vegetables and import substitution of selected spices in Bangladesh. Seven hundred twenty vegetables and 320 spices growers, 25 suppliers, and 25 exporters were randomly selected for the study.Net margin analysis was done on both variable and total cost basis. Domestic resource cost (DRC) analysis was also done for estimating comparative advantage of the selected vegetables and spices. The study revealed that net returns were positive for all vegetables and spices producers. However, the highest net return was estimated for brinjal producers (Tk. 273799/ha) followed by bittergourd producers (Tk152145/ha). In the case of spices, the highest net return was received by ginger producers (Tk. 231399/ha) followed by onion producers (Tk. 122308/ha).Comparatively lower net returns were found for okra (Tk51830/ha) and garlic producers (Tk 99352/ha). Vegetables exporters received the highest net margin (Tk32852/ ton) from UK market which was higher than the Middle East market (Tk22869/ton).The highest benefit cost ratio (BCR) was calculated for brinjal (1.9) followed by ash gourd (1.8). For spices, BCR were 2.1and 1.8 for ginger and garlic respectively. Bangladesh had comparative advantage for producing all selected vegetables as the estimates of domestic resource cost (DRC) were less than one. The value of DRC for all selected spices were less than unity implied that the production of these spices would be highly efficient for import substitution. Therefore, the study have been undertaken to find out this issues.Bangladesh J. Agril. Res. 42(2): 321-341, June 2017

INTERNATIONAL COMPETIVENESS OF UKRAINIAN AGRICULTURE

2016 ◽  
Vol 3 (1) ◽  
pp. 0-0
Author(s):  
Olexander Lesniak
Keyword(s):  
Competitive Advantage ◽  
Comparative Advantage ◽  
Comparative Advantages ◽  
Resource Cost ◽  
Definition Of ◽  
Domestic Resource

This paper resolves several points about proper use of the domestic resource cost concept to estimate the countries competitiveness. It explores its relationship to the definition of comparative advantage and competitive advantage, resolves the conflict between differing views of the comparative advantage and competitive advantage. The purpose of this paper is to investigate comparative advantages of agricultural goods production in Ukraine by using domestic resource cost method. It provides a comparison between the domestic cost to produce basic agricultural goods.

scholarly journals KEUNGGULAN KOMPARATIF USAHATANI PADI PADA BERBAGAI POLA AGROEKOSISTEM DI KABUPATEN MEMPAWAH

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Adi Suyatno, Masyhuri, Jangkung Handoyo Mulyo, Irham
Keyword(s):  
International Trade ◽  
Foreign Exchange ◽  
Comparative Advantage ◽  
Survey Method ◽  
Dry Land ◽  
West Kalimantan ◽  
Average Value ◽  
Resource Cost ◽  
The Cost ◽  
Domestic Resource

This research was conducted in the District of Mempawah, which is in the region of West Kalimantan and borders with neighboring countries (Malaysia), which of course has special characteristics, especially from the aspect of international trade, so that the comparative advantage of paddy associated with aspects of international trade, need to be examined. This study used a survey method, with 183 sample, where the number of samples of each pattern of agro-ecosystem isirrigation pattern has 55 samples, tidal patterns has 42 samples, rainfedpatterns has46samples and dry land patterns has 40 samples. The method of analysis in this study used the concept of DRC (Domestic Resource Cost). The results showed comparative advantage as indicated by the average value of the DRC is Rp 2,429, - This value indicates that the cost of domestic resources for the value to produce rice, can save foreign exchange worth US $ 1. DRCR average of 0, 24 which means rice farming has a comparative advantage (<1). Irrigation schemes have the highest levels of comparative advantage and the dry land pattern has the lowest level of comparative advantage. DRCR shows that rice is still cheaper economically to be produced in the country compared with imports from other countries. The implications of this conclusion is that the spur policy (increase) in rice production in the District of Mempawah still favorable compared to the expense of foreign exchange to import the commodity from other countries. Keywords: comparative advantage, Pattern Agroecosystems, Domestic Resource Cost

scholarly journals Analysis Competitiveness of Sugarcane Farming in Central Java and East Java

Agro Ekonomi ◽  
2017 ◽  
Vol 28 (2) ◽  
pp. 237
Author(s):  
Wahyu Adhi Saputro ◽  
Masyhuri Masyhuri ◽  
Any Suryantini
Keyword(s):  
Competitive Advantage ◽  
Comparative Advantage ◽  
Cost Ratio ◽  
Central Java ◽  
Private Cost ◽  
Sugarcane Farming ◽  
Resource Cost ◽  
Policy Analysis Matrix ◽  
Domestic Resource ◽  
Very High

This study aims to determine the competitiveness of sugarcane farming in Central Java and East Java based on comparative advantage (DRCR) and competitive advantage (PCR). The method used was the Policy Analysis Matrix (PAM). The result in Central Java explained that the sugarcane farming do not have comparative advantage but have competitive advantage. It is indicated by the value of Domestic Resource Cost Ratio DRCR>1 which is 1.23 and the value of Private Cost Ratio PCR<1 which is 0.71. Meanwhile The result in East Java explained that the sugarcane farming do not have comparative advantage but have competitive advantage. It is indicated by the value of DRCR>1 which is 1.05 and the value of PCR<1 which is 0.56. Partial test was conducted to find out how many respondents in each region in Central Java and East Java that have competitiveness sugarcane farming. Based on the partial test of each respondent in Central Java, about 51.67%, 45.00% and 3.33% of respondents are categorized as very competitive, medium competitiveness and very low competitive respectively. Meanwhile, in East Java Province, there are 25.00% of respondents with very high competitiveness, 65.00% medium competitiveness and 10.00% very low competitive.

scholarly journals COMPARATIVE ADVANTAGE OF SIAMESE ORANGE (Citrus Nobilis) FARMING IN DISTRICT OF 50 KOTA, WEST SUMATERA

2018 ◽  
Vol 1 (2) ◽  
pp. 62-67
Author(s):  
M. Mustopa Romdhon ◽  
Apri Andani ◽  
Wahyu Fitri Nasari
Keyword(s):  
Comparative Advantage ◽  
Simple Random Sampling ◽  
International Markets ◽  
Farm Income ◽  
Cost Ratio ◽  
A Value ◽  
Resource Cost ◽  
On Farm ◽  
Policy Analysis Matrix ◽  
Domestic Resource

Citrus Nobilis, known as Siamese orange, is one of the strategic fruits commodities for West Sumatera because of its higher productivity, approximately 6 - 9 tons per hectare. However, this commodity faces a fluctuated demand both in domestic and international markets. This is a serious problem due to its impact on farm income as well as in its competitive advantage. The aim of this study was to analyze the comparative advantage level of siamese orange farming.  Survey of 84 siamese orange farmers selected using simple random sampling is conducted to get orange farming data. The comparative advantage level is measured using Policy Analysis Matrix (PAM) approach. The results show that siamaese orange farming has a high comparative advantage. This showed by a value of social profitability was more than zero and domestic resource cost ratio was less than one. This comparative advantage could be sustainable by domestic resources utilization efficiently. The improvement of skills and the use of modern siamaese orange farming technology are recommended.Keywords: Comparative advantage, siamese orange farming, PAM

scholarly journals ANALISIS KEUNGGULAN KOMPARATIF USAHATANI KOPI DI KABUPATEN BOLAANG MONGONDOW MENGGUNAKAN POLICY ANALYSIS MATRIX (PAM)

2019 ◽  
Vol 15 (3) ◽  
pp. 389
Author(s):  
Yolanda Pinky Ivanna Rori ◽  
Jelly R. D. Lumingkewas ◽  
Melissa Lady Gisela Tarore
Keyword(s):  
Policy Analysis ◽  
Comparative Advantage ◽  
Descriptive Analysis ◽  
Social Benefit ◽  
Cost Ratio ◽  
Resource Cost ◽  
Coffee Farming ◽  
The Impact ◽  
Policy Analysis Matrix ◽  
Domestic Resource

The research has been done in Bolaang Mongondow. The aim of the research are to know the comparative advantage of coffee in Bolaang Mongondow North Sulawesi which is analized by Domestic Resource Cost Ratio (DRCR) value and to know the input and output price changes and its impact to the coffee farming comparative advantage. The area of research is selected by purposive method in Bolaang-Mongondow Regencies which are the production centre of coffee. The primarydata are collected through interview with 20 coffee farmers while the secondary data are gained from related institutions. Descriptive analysis using Policy Analysis Matrix (PAM) was implemented in the research to know the comparative advantage value. Sensitivity analysis is used to determine the impact of prices changing to Domestic Resource Cost Ratio (DRCR). The result shows that coffee farming in Bolaang Mongondow has a comparative advantage which is indicated by the value of DRCR 0,0791. Both Private and Social benefit value are profitable. The p rivate benefit is Rp.5.821.590 and social benefit is Rp. 5.525.338.

scholarly journals Profitability and Comparative Advantage of Onion (Allium cepa) Production in Bangladesh: An Economic Study in Some Selected Areas

2018 ◽  
Vol 15 (2) ◽  
pp. 66-78
Author(s):  
Arifa Anjum ◽  
Basanta Kumar Barmon
Keyword(s):  
Comparative Advantage ◽  
Returns To Scale ◽  
Secondary Data ◽  
Sample Survey ◽  
Affecting Factors ◽  
Resource Cost ◽  
The Government ◽  
Benefit Cost ◽  
Constant Returns To Scale ◽  
Domestic Resource

The present study attempted to estimate the profitability, domestic resource cost (DRC) and problems and prospects of onion production in the study areas. Both primary and secondary data were used in this study. Sample survey was carried out in two selected areas under Kushtia and Jhenaidah districts. A total of 110 onion producers were selected randomly of which 70 producers were from Kushtia and the remaining 40 producers were from Jhenaidah. The study showed that, on an average, total costs of onion production per hectare were about Tk. 150,097 and 116,831 in Kushtia and Jhenaidah district, respectively. The benefit cost ratios (BCR) of onion production were 2.02 and 1.83 in Kushtia and Jhenaidah district, respectively. The results of profitability and BCR show that onion is a profitable crop in Bangladesh. The domestic resource costs (DRC) were 0.47 in Kushtia and 0.52 in Jhenaidah, which indicate that Bangladesh has comparative advantage in onion production. The coefficients of the production function show that farm area, irrigation, pesticides, seeds, chemical fertilizers (TSP) and labor were statistically significant affecting factors of onion production and it shows constant returns to scale. The onion producers faced some production, technological and marketing related problems in the study areas. The government should therefore, take necessary policies for further development of onion production in Bangladesh.The Agriculturists 2017; 15(2) 66-78

Absolute and Comparative Advantages of South Australia in the Macroalgal Value Chain

2018 ◽  
pp. 146-170
Author(s):  
Göran Roos ◽  
Anthony Cheshire
Keyword(s):  
Comparative Advantage ◽  
Value Chain ◽  
Opportunity Cost ◽  
South Australia ◽  
Value Chains ◽  
Revealed Comparative Advantage ◽  
Comparative Advantages ◽  
Resource Cost ◽  
Absolute Advantage ◽  
Domestic Resource

A jurisdiction is said to have a comparative advantage in the production of a good if it can produce this good at a lower opportunity cost than another. It can be said that a jurisdiction has an absolute advantage in the production of a good if it has a higher productivity in its production of this good than another jurisdiction. Although there are no studies on comparative advantages in macroalgae value chains, there are some relating to aquaculture in general. From these two studies we can look at the domestic resource cost (DRC) approach and the revealed comparative advantage (RCA) approach. This chapter explores the absolute and comparative advantages of South Australia in the macroalgal value chain.

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