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Comparative advantage in Bangladesh crop production

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  • Shahabuddin, Quazi
  • Dorosh, Paul A.

Abstract

"This study uses data from 1996/97 through 1998/99 to examine the relative efficiency of production of crops in Bangladesh and their comparative advantage in international trade as measured by net economic profitability (the profitability using economic, rather than financial costs and prices), and the domestic resource cost ratio, (the amount of value of non-tradable domestic resources used in production divided by the value of tradable products). The economic profitability analysis demonstrates that Bangladesh has a comparative advantage in domestic production of rice for import substitution. However, at the export parity price, economic profitability of rice is generally less than economic profitability of many non-rice crops, implying that Bangladesh has more profitable options other than production for rice export. Several non-cereal crops, including vegetables, potatoes and onions have financial and economic returns that are as high as or higher than those of High Yielding Variety (HYV) rice. The relatively minor role in cropping systems of these crops despite their higher returns, can largely be attributed to high price risks associated with marketing, suggesting the need for further development of agro-processing industries, rural infrastructure, and marketing networks." Authors' Abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series MSSD discussion papers with number 47.

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Date of creation: 2002
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Handle: RePEc:fpr:mssddp:47

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References

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  1. Ngqangweni, Simphiwe, 1999. "Rural growth linkages in the Eastern Cape Province of South Africa," MTID discussion papers 33, International Food Policy Research Institute (IFPRI).
  2. Minot, Nicholas, 1999. "Effects of transaction costs on supply response and marketed surplus," MTID discussion papers 36, International Food Policy Research Institute (IFPRI).
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  4. Kherallah, Mylène & Minot, Nicholas & Gruhn, Peter, 1999. "Adjustment of wheat production to market reform in Egypt," MTID discussion papers 32, International Food Policy Research Institute (IFPRI).
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  6. Abdulai, Awudu & Delgado, Christopher L., 1999. "An empirical investigation of short and long-run agricultural wage formation in Ghana," MTID discussion papers 37, International Food Policy Research Institute (IFPRI).
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  8. Badiane, Ousmane, 1998. "Marketing policy reform and competitiveness," MTID discussion papers 22, International Food Policy Research Institute (IFPRI).
  9. Goletti, Francesco & Badiane, Ousmane & Sil, Jayashree, 1994. "Foodgrain market integration under market reforms in Egypt," MTID discussion papers 1, International Food Policy Research Institute (IFPRI).
  10. Minot, Nicholas & Kherallah, Mylène & Berry, Philippe, 2000. "Fertilizer market reform and the determinants of fertilizer use in Benin and Malawi," MTID discussion papers 40, International Food Policy Research Institute (IFPRI).
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  15. Rashid, Shahidur & Sharma, Manohar & Zeller, Manfred, 2002. "Micro-lending for small farmers in Bangladesh," MTID discussion papers 45, International Food Policy Research Institute (IFPRI).
  16. Dorosh, Paul A. & Shahabuddin, Quazi & Aziz, M. Abdul & Farid, Naser, 2002. "Bumper crops, producer incentives and persistent poverty," MSSD discussion papers 43, International Food Policy Research Institute (IFPRI).
  17. repec:fth:oxesaf:99-25 is not listed on IDEAS
  18. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MTID discussion papers 46, International Food Policy Research Institute (IFPRI).
  19. Rusike, Joseph, 1995. "The development of maize seed markets in Sub-Saharan Africa," MTID discussion papers 5, International Food Policy Research Institute (IFPRI).
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  22. Rashid, Shahidur, 2002. "Dynamics of agricultural wage and rice price in Bangladesh," MSSD discussion papers 44, International Food Policy Research Institute (IFPRI).
  23. Delgado, Christopher L. & Rosegrant, Mark W. & Steinfeld, Henning & Ehui, Simeon K. & Courbois, Claude, 1999. "The growing place of livestock products in world food in the twenty-first century," MTID discussion papers 28, International Food Policy Research Institute (IFPRI).
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Citations

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Cited by:
  1. Mahabub Hossain, 2004. "Poverty Alleviation Through Agriculture and Rural Development in Bangladesh," CPD Working Paper 39, Centre for Policy Dialogue (CPD).
  2. World Bank, 2003. "Bangladesh - Development Policy Review : Impressive Achievements but Continuing Challenges," World Bank Other Operational Studies 14669, The World Bank.
  3. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MSSD discussion papers 51, International Food Policy Research Institute (IFPRI).
  4. Rashid, Shahidur, 2004. "Spatial integration of maize markets in post-liberalized Uganda," MTID discussion papers 71, International Food Policy Research Institute (IFPRI).
  5. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
  6. Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MTID discussion papers 52, International Food Policy Research Institute (IFPRI).
    • Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MSSD discussion papers 52, International Food Policy Research Institute (IFPRI).
  7. Hossain, Mahabub & Naher, Firdousi & Shahabuddin, Quazi, 2005. "Food Security and Nutrition in Bangladesh: Progress and Determinants," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 2(2).
  8. Joshi, P.K. & Gulati, Ashok & Birthal, Pratap S. & Tewari, Laxmi, 2003. "Agriculture diversification in South Asia," MSSD discussion papers 57, International Food Policy Research Institute (IFPRI).
  9. Muhammad A. Quddus & Usman Mustafa, 2011. "Comparative Advantage of Major Crops Production in Punjab: An Application of Policy Analysis Matrix," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(1), pages 63-94, Jan-Jun.

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