Economic incentives and comparative advantage in beef production in Thailand
1989
Surasak Pannop (Office of Agricultural Economics, Chantaburi (Thailand). Agro-Economic Zone 20)
Objective of this study is to determine the effect of government policies on economic incentives and analyze comparative advantage in local beef production. The study areas are Sakon Nakhon, Tak, Ratchaburi and the nearby province. Regarding government intervention, high quality beef received degree rate of protection, ranging from 74.15-86.14 % of Net Nominal Protection Rate (NNPR) and 86.68-127.73 % of Net Effective Rate of Protection (NERP) Tariff rate imposed on traded inputs ranging from 19.03-29.77 % of Net Implicit Tariff (NIT). With respect to the comparative advantage of similar types of high quality beef, the domestic price is about one third that of the import. If this is attributed totally to quality difference, only Ratchaburi appears to have some comparative advantage in producing high quality beef. However, if this difference is not objectively real, there is a large potential for high quality beef. The Resource Cost Ratio (RCR) can be as low as 0.27
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