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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

Suggested Citation

  • Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MTID discussion papers 47, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:mtiddp:47
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    Cited by:

    1. 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.
    2. Headey, Derek D. & Hoddinott, John F., 2015. "Agriculture, nutrition, and the Green Revolution in Bangladesh:," IFPRI discussion papers 1423, International Food Policy Research Institute (IFPRI).
    3. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MTID discussion papers 51, International Food Policy Research Institute (IFPRI).
    4. Mahabub Hossain, 2004. "Poverty Alleviation Through Agriculture and Rural Development in Bangladesh," CPD Working Paper 39, Centre for Policy Dialogue (CPD).
    5. 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).
    6. World Bank, 2003. "Bangladesh - Development Policy Review : Impressive Achievements but Continuing Challenges," World Bank Other Operational Studies 14669, The World Bank.
    7. Sanzidur Rahman & Mohammad Mizanul Haque Kazal & Ismat Ara Begum & Mohammad Jahangir Alam, 2016. "Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh," Agriculture, MDPI, Open Access Journal, vol. 6(2), pages 1-14, May.
    8. Headey, Derek D. & Hoddinott, John, 2016. "Agriculture, nutrition and the green revolution in Bangladesh," Agricultural Systems, Elsevier, vol. 149(C), pages 122-131.
    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.
    10. 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).
    11. Shahidur Rashid, 2004. "Spatial Integration of Maize Markets in Post-liberalised Uganda," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 13(1), pages 102-133, March.
    12. 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).

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