COMPARATIVE ADVANTAGE AND ECONOMIC POLICY EFFECTS ON ORANGE PRODUCTION

Authors

  • Pedro Rubén Aquino-Mercado
  • Roberto García-Mata
  • René Fonseca-Medina
  • Marco Antonio Galindo-Olguín

Keywords:

Citrus sinensis L., profitability, comparative advantage, market prices, efficient prices, agricultural economics

Abstract

Because México is participating in an open economy it is important to assess productivity, profitability and efficiency levels of the agricultural production systems. Quantitative economic indicators of orange (Citrus sinensis L.) production were derived to evaluate its profitability and comparative advantage. The Policy Analysis Matrix (PAM) framework was used to carry out the analysis. The PAM was constructed using both private (actual market prices) and economic (efficiency prices) budgets. Reference is made to the present and potential technologies available in the four top orange production states (Nuevo León, Tabasco, Tamaulipas and Veracruz); which included rainfed and irrigated production systems (gravity and pump). At market prices all technologies were competitive, and areas irrigated by wells have the highest profitability. At economic efficiency prices, all production systems were profitable, that is, they have comparative advantage; rainfed technologies had the highest efficiency

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Published

30-06-1998

Issue

Vol. 32 No. 2 (1998): 1998-abr-jun

Section

Essays

License

Agrociencia is published every 45 days, in an English format, and it is edited by the Colegio de Postgraduados. Mexico-Texcoco highway Km. 36.5, Montecillo, Texcoco, Estado de México, CP 56264, Telephone (52) 5959284427. www.colpos.mx. Editor-in-Chief: Dr. Fernando Carlos Gómez Merino. Rights Reserved for Exclusive Use: 04-2021-031913431800-203, e-ISSN: 2521-9766, granted by the National Institute for Author Right.