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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 MTID discussion papers with number 47.

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

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References

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  1. Minot, Nicholas & Baulch, Bob, 2002. "The spatial distribution of poverty in Vietnam and the potential for targeting," MTID discussion papers 42, International Food Policy Research Institute (IFPRI).
  2. Rusike, Joseph, 1995. "The development of maize seed markets in Sub-Saharan Africa," MTID discussion papers 5, International Food Policy Research Institute (IFPRI).
  3. 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).
  4. 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).
  5. Minot, Nicholas, 2000. "Generating Disaggregated Poverty Maps: An Application to Vietnam," World Development, Elsevier, vol. 28(2), pages 319-331, February.
  6. Badiane, Ousmane, 1996. "The impact of the CFA devaluation on cereal markets in selected CMA/WCA member countries," MTID discussion papers 8, International Food Policy Research Institute (IFPRI).
  7. Holloway, Garth & Nicholson, Charles & Delgado, Chris & Staal, Steve & Ehui, Simeon, 2000. "Agroindustrialization through institutional innovation: Transaction costs, cooperatives and milk-market development in the east-African highlands," Agricultural Economics, Blackwell, vol. 23(3), pages 279-288, September.
  8. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MTID discussion papers 46, International Food Policy Research Institute (IFPRI).
  9. Rashid, Shahidur, 2002. "Dynamics of agricultural wage and rice price in Bangladesh," MSSD discussion papers 44, International Food Policy Research Institute (IFPRI).
  10. Goletti, Francesco & Minot, Nicholas, 1997. "Rice markets, agricultural growth, and policy options in Viet Nam," MTID discussion papers 14, International Food Policy Research Institute (IFPRI).
  11. 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).
  12. Goletti, Francesco & Minot, Nicholas & Berry, Philippe, 1997. "Marketing constraints on rice exports from Viet Nam," MTID discussion papers 15, International Food Policy Research Institute (IFPRI).
  13. Badiane, Ousmane, 1998. "Marketing policy reform and competitiveness," MTID discussion papers 22, International Food Policy Research Institute (IFPRI).
  14. Badiane, Ousmane & Shively, Gerald E., 1997. "The response of local maize prices to the 1983 currency devaluation in Ghana," MTID discussion papers 12, International Food Policy Research Institute (IFPRI).
  15. Fafchamps, Marcel & Minten, Bart, 2001. "Property Rights in a Flea Market Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 229-67, January.
  16. Christopher Delgado & Pierre Crosson & Claude Courbois, 1997. "The Impact of Livestock and Fisheries on Food Availability and Demand in 2020," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1471-1475.
  17. Awudu Abdulai & Christopher Delgado, 2000. "An Empirical Investigation of Short- and Long-run Agricultural Wage Formation in Ghana," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 169-185.
  18. Rashid, Shahidur & Sharma, Manohar & Zeller, Manfred, 2002. "Micro-lending for small farmers in Bangladesh," MTID discussion papers 45, International Food Policy Research Institute (IFPRI).
  19. Staal, Steven & Delgado, Christopher L. & Nicholson, Charles F., 1996. "Smallholder dairying under transactions costs in East Africa," MTID discussion papers 9, International Food Policy Research Institute (IFPRI).
  20. Ngqangweni, Simphiwe, 1999. "Rural growth linkages in the Eastern Cape Province of South Africa," MTID discussion papers 33, International Food Policy Research Institute (IFPRI).
  21. Kherallah, Mylène & Kirsten, Johann, 2001. "The new institutional economics," MSSD discussion papers 41, International Food Policy Research Institute (IFPRI).
  22. 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).
  23. Badiane, Ousmane & Nuppenau, Ernst-August, 1997. "Reforming and promoting local agricultural markets," MTID discussion papers 10, International Food Policy Research Institute (IFPRI).
  24. Minot, Nicholas, 1999. "Effects of transaction costs on supply response and marketed surplus," MTID discussion papers 36, International Food Policy Research Institute (IFPRI).
  25. Badiane, Ousmane, 1994. "Agricultural market reforms in Egypt," MTID discussion papers 2, International Food Policy Research Institute (IFPRI).
  26. repec:fth:oxesaf:99-25 is not listed on IDEAS
  27. Minot, Nicholas & Kherallah, Mylène & Berry, Philippe, 2000. "Fertilizer market reform and the determinants of fertilizer use in Benin and Malawi," MSSD discussion papers 40, 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. Rashid, Shahidur, 2004. "Spatial integration of maize markets in post-liberalized Uganda," MTID discussion papers 71, International Food Policy Research Institute (IFPRI).
  3. Mahabub Hossain & Firdousi Naher & Quazi Shahabuddin, 2005. "Food Security and Nutrition in Bangladesh: Progress and Determinants," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 2(2), pages 103-132.
  4. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MTID discussion papers 51, International Food Policy Research Institute (IFPRI).
  5. 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).
    • 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).
  6. 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).
  7. 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.
  8. World Bank, 2003. "Bangladesh - Development Policy Review : Impressive Achievements but Continuing Challenges," World Bank Other Operational Studies 14669, The World Bank.
  9. 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.

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