Determining comparative advantage through DRC analysis: guidelines emerging from CIMMYT's experience

dc.creatorMorris, M.L.
dc.date2012-01-06T05:05:37Z
dc.date2012-01-06T05:05:37Z
dc.date1990
dc.date.accessioned2023-07-17T19:55:08Z
dc.date.available2023-07-17T19:55:08Z
dc.identifier0188-2414
dc.identifierhttp://hdl.handle.net/10883/836
dc.identifier.urihttps://repositorioslatinoamericanos.uchile.cl/handle/2250/7508165
dc.descriptionKnowledge of comparative advantage is important for developing countries, because potential welfare gains from specialization and trade can be used to foster economic growth. One practical difficulty with using comparative advantage for designing agricultural policies or allocating research resources is that comparative advantage is difficult to determine empirically. The domestic resource cost (DRC) framework of analysis offers a way of empirically measuring comparative advantage by generating quantitative indicators of the efficiency of using domestic resources to produce a given commodity, as measured against the possibilities of trade. These quantitative indicators provide an empirical measure of comparative advantage. At the same time, the analytical framework allows the distortionary effects of government policies to be measured. The paper first describes the basic DRC methodology, using examples drawn from a series of case studies carried out over the past five years by the CIMMYT Economics Program. This step-by-step description of the DRC methodology is a concise, non-technical guide for use in conducting applied comparative advantage studies and addresses a number of practical and conceptual problems commonly encountered. The paper then summarizes a number of lessons learned over the years at CIMMYT and evaluates the usefulness of the DRC framework as a tool for applied policy analysis and research resource allocation.
dc.descriptionvii, 42 pages
dc.formatPDF
dc.languageEnglish
dc.publisherCIMMYT
dc.relationCIMMYT Economics Paper
dc.rightsCIMMYT manages Intellectual Assets as International Public Goods. The user is free to download, print, store and share this work. In case you want to translate or create any other derivative work and share or distribute such translation/derivative work, please contact CIMMYT-Knowledge-Center@cgiar.org indicating the work you want to use and the kind of use you intend; CIMMYT will contact you with the suitable license for that purpose.
dc.rightsOpen Access
dc.subjectAGRICULTURAL SCIENCES AND BIOTECHNOLOGY
dc.subjectCOST ANALYSIS
dc.subjectDOMESTIC TRADE
dc.subjectECONOMIC DEVELOPMENT
dc.subjectENTERPRISES
dc.subjectMARKETING POLICIES
dc.subjectPRICE FORMATION
dc.subjectPRICE POLICIES
dc.subjectTRADE POLICIES
dc.subjectCOST ANALYSIS
dc.subjectDOMESTIC TRADE
dc.subjectECONOMIC DEVELOPMENT
dc.subjectENTERPRISES
dc.subjectMARKETING POLICIES
dc.subjectPRICE FORMATION
dc.subjectPRICE POLICIES
dc.subjectTRADE POLICIES
dc.titleDetermining comparative advantage through DRC analysis: guidelines emerging from CIMMYT's experience
dc.typeHandbook
dc.coverageMexico


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