scholarly journals Comparative Advantage and Market Distortions: A Policy Analysis Matrix for Iraqi Wheat Crop Production

2019 ◽  
Vol 11 (2) ◽  
pp. 82
Author(s):  
Ammar Saad ◽  
Zhang Rui Tao ◽  
Xia Ying

Wheat is the most crop have been subsidized by the government in Iraq, through subsidizing the input of the production (seed, pesticide, and machines), as well as, subsidize the output of the production through purchasing it from the producers at a high price compared to the world market price. The study aims to assess the competitive advantage of wheat production in Iraq through some of the measures derived from the policy analysis matrix. This study according to secondary data has published by Iraqi Ministry of Planning/Central Organization of Statistics and Information Technology 2018, for wheat production costs of cultivation season in Iraqi provinces 2017. The results of the study indicated that the coefficients measures show, there is a government subsidy for wheat output and that means, producers receive prices higher than international prices with the existence of this policy. While the comparative advantage indicators showed, the wheat crop in Iraq was achieved private profits due to government intervention in the inputs and outputs of production, nor competitive advantage in social prices. Where the policy reflection indexes/market distortions analysis shows, that the government policy for wheat production 2017 subsidized the producers on the consumer cost, where the local market price for wheat is higher than the price of wheat in the world market.

Author(s):  
Arief Budiman ◽  
Lucyana Trimo ◽  
Eti Suminartika ◽  
Sri Fatimah

ABSTRAKKomoditas wortel telah lama menjadi andalan produksi salahsatu kelompok tani Katata yang beradadi Pangalengan, Jawa Barat. Produksinya memiliki kualitas dan kuantitas yang tidak hanya baikdalam pemenuhan lokal saja, namun juga terhadap pemenuhan Ekspor. Tujuan dari penelitian iniadalah untuk mendapatkan pengatahuan daya saing dan peluang ekspor dari dampak kebijakanpemerintah pada usahatani wortel di Kelompok Tani Katata. Penelitian dilakukan di Kelompok TaniKatata, Pangalengan, Kabupaten Bandung. Data dianalisis dengan Policy Analysis Matrix (PAM),untuk menghitung keunggulan komparatif, keunggulan kompetitif dan dampak kebijakan pemerintahdengan menggunakan harga aktual dan harga bayangan. Hasil penelitian menunjukkan bahwapengusahaan wortel di Kelompok Tani Katata memiliki keunggulan kompetitif karena nilai PCRsebesar 0,062 atau PCR kurang dari satu (PCR < 1). Hal yang sama menunjukkan bahwa wortelmemiliki keunggulan komparatif dengan nilai DRC 0,060 atau DRC kurang dari satu (DRC < 1).Kebijakan pemerintah dinilai menghambat ekspor output dan adanya proteksi terhadap input lokaldibuktikan dengan nilai NPCO dan NPCI yang kurang dari satu. Secara keseluruhan kebijakanpemerintah yang berlaku saat ini masih belum mendukung dalam hal pengembangan danpeningkatan keunggulan komparatif dan keunggulan kompetitif pengusahaan komoditas wortel diKelompok Tani Katata.Kata kunci: daya saing, wortel, ekspor, Policy Analysis Matrix (PAM)ABSTRACTCarrot commodity has been each mainstay production belong to Katata’s farmer group inPangalengan, West Java since long time ago. Their production have good quality and quantitywhich have potential for locally and export. The main of this research is to know the competitivenessand impact of government policy of the commodities carrots (case study Katata, subdistrictPangalengan, county level Bandung).Policy Analysis Matrix (PAM) is the method to analyze data ofthis research to measure the comparative advantage, competitive advantage, and impact ofgovernment policy using actual price and estimation price.The result indicate that carrost in Katatahave a competitive advantage because PCR value of 0.062 or PCR of less than one (PCR < 1).Itsalso indicate that carrot has a comparative advantage with the value of the DRC 0.060 or DRC lessthan a (DRC < 1).The government policy is rated to inhibit the outpur export and protection againtslocale input by the value of an NPCO and NPCI is less than one.Overall the policy is still notsupporting development and improvement comparative advantage and competitive advantage forcarrot business in Katata.Keywords: competitiveness, carrots, export, Policy Analysis Matrix (PAM)


2017 ◽  
Vol 48 (3) ◽  
Author(s):  
Lateef & et al.

The objective of this research was to analyze the economic impact of government intervention in the essential cereal crops for (Rice Buhooth1, and Synthetic genotype Baghdad3) by comparing the social price and private prices through adopting policy analysis matrix approach PAM and the derived parameters from it .The research was divided into two chapters; the first chapter was about field counting for the policy analysis matrix PAM and measuring the implications of the government intervention on the Rice Buhooth1. The second chapter was about explaining the field counting for policy analysis matrix PAM and measuring the implications of the government intervention impact on the second synthetic genotype Baghdad3.The research found a set of results, the most important result showed that the value of profitability coefficient was about 3.69, this indicates that the rice crop production system for the Rice Buhooth 1  takes advantage of the adopted government policy in that year, which means that there is governmental support for the product. In addition, domestic resource cost coefficient value which was about 0.72 indicates that there is comparative advantage for the Rice Buhooth 1  for the year 2012. The values of the nominal and effective protection coefficient were about 1.74 and 1.59 respectively; the value of the first factor indicates that there is governmental support for the domestic producer for the above, while the second factor indicates that the domestic producer will obtain greater returns in the investment of its resources in the existence of the government intervention from its absence. Regarding the Synthetic genotype Baghdad3, the value of profitability coefficient was about  1.75  which means that there is governmental support for the product. The domestic resource cost coefficient value was about 0.24 which indicates that there was comparative advantage for the mentioned above for the year 2012. The values of the nominal and effective protection coefficient were about 1.48 and 1.56 respectively; the value of the first factor indicates that there is governmental support for the domestic producer for the above, while the second factor indicates that the domestic producer will obtain greater returns in the investment of its resources in the existence of the government intervention from its absence. Finally, it is highly recommended that support should be increased for the varieties that the country has greater comparative advantage in order to improve the utilization of available resources and reduce wasted resources. Moreover, similar studies should be done in the future by other researchers to major cereal crops varieties at the country level in order to do comparison between them to set a mechanism for the government intervention policy in the main crop prices in the country which help both the local producer and agricultural investor in directing its resources properly.


PLoS ONE ◽  
2021 ◽  
Vol 16 (9) ◽  
pp. e0256832
Author(s):  
Saptana ◽  
Endro Gunawan ◽  
Atika Dyah Perwita ◽  
Syahrul Ganda Sukmaya ◽  
Valeriana Darwis ◽  
...  

Shallot is a national strategic commodity in Indonesia, but it is development has a fundamental technical, socioeconomic, and policy support problems. Therefore, it is essential to know the competitiveness of shallot in Indonesia and the incentive policy to implement the comparative advantage to become a sustainable competitive advantage. The purposes of this study are to (1) analyze the profitability of shallot farming privately and socially, (2) analyze the competitiveness of shallot farming from a competitive and comparative advantage perspective, (3) review the impact of government policy on shallot farming, and (4) formulate incentive policies in the development of shallot commodities. The empirical results of the Policy Analysis Matrix revealed that shallot farming in production centers in Indonesia has both competitive and comparative advantages. The highest competitive and comparative advantages were found in the dry season in the upland of Malang district with the coefficient values of PCR (Private Cost Ratio) of 0.268–0.508 and DRCR (Domestic Resource Cost Ratio) of 0.208–0.323. The lowest competitive advantage was found in the lowland of East Lombok district in the dry season with a coefficient value of PCR 0.728–0.844. The lowest comparative advantage in the dry season was found in East Lombok district with a DRCR of 0.448, while in the rainy season, it was found in Wonosobo district with a DRCR of 0.522. These results mean that it is more profitable for Indonesia to increase domestic shallot production than to import. Improving shallot competitiveness can be carried out by implementing advanced technology, agricultural infrastructure, capacity building of farmers’ resources, and government incentive policies to increase productivity and competitiveness sustainability.


2015 ◽  
Vol 7 (2(J)) ◽  
pp. 145-161
Author(s):  
Zerihun G. Kelbore

This study investigates and compares oilseeds price volatilities in the world market and the Ethiopian market. It uses a monthly time series data on oilseeds from February 1999 to December 2012; and analyses price volatilities using unconditional method (standard deviation) and conditional method (GARCH). The results indicate that oilseeds prices are more volatile, but not persistent, in the domestic market than the world market. The magnitude of the influence of the news about past volatility (innovations) is higher in the domestic market for Rapeseed and in the World market for Linseed. However, in both markets there is a problem of volatility clustering. The study also identified that due to the financial crisis the world market price volatilities surpassed and/or paralleled the higher domestic oilseeds price volatilities. The higher domestic oilseeds price volatility may imply that the price risks are high in the domestic oilseeds market. As extreme price volatility influences farmers` production decision, they may opt to other less risky, low-value and less profitable crop varieties. The implications of such retreat is that it may keep the farmers in the traditional farming and impede their transformation to the high value crops, and results in lower income hindering the poverty reduction efforts of the government. This is more important to consider today than was before, because measures undertaken to reduce poverty must bring sustainable change in the lives of the rural poor. For this reason, agricultural policies that enable farmers cope with price risks and enhance their productivity are crucial.


2019 ◽  
Vol 11 (17) ◽  
pp. 150
Author(s):  
Ammar Saad ◽  
Ruitao Zhang ◽  
Ying Xia

As the third-largest crop in China, wheat production plays an essential role in China&#39;s agricultural production, food processing and consumption structure. Besides, China is the world&rsquo;s largest wheat producer and consumer, where it produces 14.83% of the world&#39;s total wheat production in 2017. So it is necessary to analyze and evaluate the government policy for wheat production in China using PAM. This research depends on the data has issued by the National Development and Reform Commission/China statistics press 2018 (National farm production cost-benefit survey 2017). The outcomes of this paper showed that the coefficients measures confirm there is government support for wheat production, that indicates, farmers are getting prices higher than global prices by the continuation of the current policy. While there was no comparable advantage has shown for Chinese wheat product in social prices due to the government intervention in the prices of production outputs. Where this policy representation indexes show that the policy for wheat production 2017 supported the farmers on the consumer cost.


2021 ◽  
Vol 4 (4) ◽  
pp. 811-819
Author(s):  
Muhammad Shahid Maqbool ◽  
Furrukh Bashir ◽  
Hafeez Ur Rehman ◽  
Rashid Ahmad

The aim of this study is to examine the export performance and competitiveness of Pakistan's toy exports by using different indices of revealed comparative advantage. The data were looked at from the International Trade Centre (ITC) for Pakistan’s toys exports during 2004-2020. The results of this study show that Pakistan enjoyed a comparative advantage in exporting toys to the world market during 2004-2020, because the RCA index is greater than 1. The positive values of RSCA and LnRCA indicate that Pakistan had a CA in the concerned sector during 2004-2020. The study also observed that Pakistan had a competitive advantage by employing Vollrath index (RCA#). In addition, the revealed competitiveness index (RC) indicates that Pakistan experienced competitiveness in the toy export sector. The RMA index shows that Pakistan also enjoyed a comparative advantage in the imports of toys during 2004-2020. This means that Pakistan also imports these products from other economies of the world. The index of RTA describes that Pakistan had a net comparative advantage in this sector during analysis. TBI illustrates that Pakistan is the net-exporter in the toys and games sector in the global economy. Pakistan's toy manufacturers need to find new innovative and technologically advanced methods to stimulate domestic toy production and exports.


Author(s):  
Bernadeta Julia Wijaya Puspita Sari ◽  
Sucihatiningsih Dian Wisika Prajanti

Soybean is one of the commodities strategy, because the demand for soy in the international and domestic market has always increased. To fill the domestic soybean demand by importing soybeans. This is a serious problem because it will have an impact on the decline in farm income due to import soybeans. The aim of this study was to determine whether soybean farming in the village Banaran, Pracimantoro, Wonogirihas a competitive advantage and comparative advantage, as well as to determine the impact of government policy on soybean farming.The method used is qualitative method by interviews with soybean farmers. Results of interview with farmers processed by Policy Analysis Matrix (PAM), which produced the analysis forms of competitive advantage, comparative advantage, and the impact of government policy.Results from this study are of soybean farming in the village Banaran, Pracimantoro, Wonogiri only has a competitive advantage.Overall government policies protective of soybean farming in the village Banaran. 


2019 ◽  
Vol 19 (1) ◽  
pp. 1-13
Author(s):  
Yoanes Krisostomos Nargy Justra Septaris ◽  
Tinjung Mary Prihtanti

Competitiveness requires a country to excel in competitive and comparative advantage. The commodities that need to be developed are rice. This commodity was chosen because it is a commodity that the government prioritizes and is full of agricultural policies. The purpose of this study is to determine profits, competitive and comparative advantages and the impact of government policies. This research was conducted in March 2018 in Susukan District, Semarang Regency. The sampling technique used purposive sampling technique with a total of 30 respondents. Data analysis using Policy Analysis Matrix (PAM). The results showed that farming has a competitive and comparative advantage seen from the value of PCR and DRCR less than 1 but the DRCR value of 0.935 means that farming is feared no longer has comparative advantage if there is no interference from government policy. For the government, the policy of subsidizing fertilizers and pesticides is continued so that the farming business remains competitive but the use of fertilizer by farmers should be reduced so that it is in accordance with recommendations from the Agriculture Service or researchers. Marketers should target the domestic market because the price of rice in the international market is lower than in the country.


2009 ◽  
Vol 14 (2) ◽  
pp. 125-133 ◽  
Author(s):  
Waqar Akhtar ◽  
M. Sharif ◽  
Hassnain Shah

This paper examines the global competitiveness of Pakistan’s fruit exports (dates, mangoes, and oranges), using revealed comparative advantage (RCA). It also analyzes domestic consumption trends among selected fruits grown by major exporters. Our results indicate that Pakistan has a comparative advantage in fruit exports. Comparing the movement in comparative advantage indices for Pakistan with those of its main exporters/competitors demonstrates that Pakistan has a relatively high comparative and competitive advantage in the production of dates and mangoes. The increasing trend of competitiveness in Pakistan indicates that there is potential for higher growth; given that fruit exports are a potential source of higher exports earnings, there is a need to strengthen competitiveness in this sector.


2017 ◽  
Vol 11 (1) ◽  
pp. 69-96
Author(s):  
Siti Yuliaty Chansa Arfah ◽  
Harianto . ◽  
Suharno .

Penelitian ini bertujuan untuk mengkaji daya saing komoditi kakao di Sulawesi Tengah dan melihat peran pemerintah dalam meningkatkan daya saing komoditi kakao. Data primer berasal dari observasi, wawancara dan kuesioner, sementara data sekunder berasal dari instansi terkait. Metode analisis menggunakan Policy Analysis Matrix (PAM) dan analisis sensitivitas. Penelitian ini menemukan bahwa nilai PCR Kabupaten Parigi Moutong 0,589 dan Kabupaten Sigi 0,396. Sedangkan nilai DRC Kabupaten Parigi Moutong 0,387 dan Kabupaten Sigi 0,319. Hal tersebut mengindikasikan bahwa usahatani komoditi kakao di Sulawesi Tengah memiliki daya saing, namun tidak menguntungkan secara ekonomi karena Sulawesi Tengah menghasilkan biji kakao yang tidak difermentasi akibatnya petani menerima harga rendah. Berdasarkan hasil analisis, pemerintah belum memberikan proteksi terhadap harga biji kakao dalam negeri melalui harga referensi biji kakao sehingga harga biji kakao didaerah penelitian masih tergolong rendah jika dibandingkan dengan harga di pasar internasional. Sementara terhadap input, pemerintah telah memberikan kebijakan subsidi kepada petani, namun implementasinya masih perlu perbaikan terutama terkait penyaluran dan pengelolaan bantuan agar merata. Kajian ini merekomendasikan masih diperlukan kebijakan pemerintah baik terhadap input maupun output untuk meningkatkan produktivitas, menurunkan biaya produksi dan menaikkan harga jual biji kakao, sehingga dapat meningkatkan daya saing biji kakao. The purpose of this study is to assess the competitiveness of cocoa in Central Sulawesi and to investigate the role of government in improving the competitiveness of cocoa. The primary data were generated through observation, interviews and some questionnaires. The secondary data were obtained from the agency or the institution related to the research. This study uses the Policy Analysis Matrix (PAM) and sensitivity analysis. The study found that the PCR value for Parigi Moutong district was 0.589 and Sigi district was 0.396. While, the DRC value for Parigi Moutong district was 0.387 and Sigi district was 0.319. This indicates that cocoa beans farming in Central Sulawesi has competitiveness, but not economically beneficial because Central Sulawesi produces unfermented cocoa beans consequently farmers receive low prices. Based on the results of the government's impact on output analysis, the government did not provide protection for domestic cocoa seed prices through the reference price of cocoa beans, consequently the price of domestic cocoa beans, particularly in the research area, was relatively low compared to the price of cocoa beans at the international market. Seen from the government policy on inputs, the government have provided subsidies to farmers but they need to improve the distribution and management of aid to be evenly distributed. It is necessary to set up good government policy on inputs and outputs in order to increase cocoa seed productivity, decrease production cost and increase the price which simultaneously can improve its competitiveness in the research location.


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