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Assessing the Comparative Advantage of Albanian Olive Oil Production

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  • Mane-Kapaj, Ana
  • Kapaj, Ilir
  • Chan-Halbrendt, Catherine
  • Totojani, Orkida

Abstract

The main objective of this study is to evaluate the comparative advantage of olive oil production in Albania using Policy Analysis Matrix (PAM) method. The result indicates that olive oil production in Albania is profitable for the producers. Whereas the DRC ratio equals to 2.2, meaning that olive oil production in Albania does not have a comparative advantage for the given situation of production, prices and technology. This means that while it is profitable for private producers to manufacture olive oil for the domestic market, it does not have a comparative advantage with other EU countries. In order for Albania to develop an olive oil industry comparable to neighboring countries with similar climatic and soil conditions, the country will need to achieve higher productivity similar to those countries.

Suggested Citation

  • Mane-Kapaj, Ana & Kapaj, Ilir & Chan-Halbrendt, Catherine & Totojani, Orkida, 2010. "Assessing the Comparative Advantage of Albanian Olive Oil Production," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 13(1), pages 1-12, February.
    • Handle: RePEc:ags:ifaamr:92640
    DOI: 10.22004/ag.econ.92640
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    File URL: https://ageconsearch.umn.edu/record/92640/files/20091005_Formatted.pdf
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    References listed on IDEAS

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    1. Gerald C. Nelson & Martin Panggabean, 1991. "The Costs of Indonesian Sugar Policy: A Policy Analysis Matrix Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 703-712.
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    Cited by:

    1. Ferhat Pehlivanoglu & Cemil Erarslan & Sedanur Demir, 2021. "Factors affecting competition in olive oil exports: Panel data analysis of selected countries. Case study," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(12), pages 511-518.
    2. Akramov, Kamiljon T. & Malek, Mehrab, 2012. "Analyzing profitability of maize, rice, and soybean production in Ghana: Results of PAM and DEA analysis," GSSP working papers 28, International Food Policy Research Institute (IFPRI).
    3. Luiz Clovis Belarmino & Antonio Domingos Padula & Margarita Navarro Pabsdorf, 2022. "Economic Sustainability in Emerging Agro-Industrial Systems: The Case of Brazilian Olive Cultivation," Agriculture, MDPI, vol. 12(12), pages 1-15, December.
    4. Teresa Del Giudice & Carla Cavallo & Francesco Caracciolo & Gianni Cicia, 2015. "What attributes of extra virgin olive oil are really important for consumers: a meta-analysis of consumers’ stated preferences," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-15, December.

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