COMPARATIVE ADVANTAGE AND POLICY EFFECTS ON LEMON PRODUCTION IN COLIMA, OAXACA AND VERACRUZ, MEXICO

Abstract

In the context of the current domestic economic situation, represented by free trade, it is necessary to know which agricultural products make an efficient use of resources, and which are an actual or potential option for foreign markets. This paper assesses empirically the profitability and comparative advantage of the lemon (Citrus limon L.) crop, by means of quantitative indicators provided by the Policy Analysis Matrix. Reference is made to current and potential technologies available in Colima, Oaxaca, and Veracruz States, because in 1993 (the year of this research) these states represented 66.0 % of the area harvested, and 53.7 % of the national production. This analysis treats separately the technologies of pumping, surface irrigation, and rainfed orchards. All technologies were competitive at market prices, but rainfed orchards showed the highest profitability. Likewise, all production systems showed positive gains for economic efficiency prices; i.e, they had comparative advantage. The rainfed orchards had the highest efficiency level.