Comparative advantage of tuna fisheries industry in Indonesia.
1990
Iqbal M. Ali
Canned tuna has better comparative advantage than fresh tuna considering their DRC being 0.92 and 0.95 respectively. Lower DRC reflects slightly greater benefit for canned tuna industry. To earn one unit of foreign exchange, the domestic resource costs required are lower in case of canned tuna. Effective Protection Coefficients (EPC) are both 0.996 for fresh and canned tuna. The net impact of government policy reduces actual value added by 0.4 %. The Profitability Coefficients (PC) permit the private profit to be 2.20 times of the social profit of fresh tuna and 1.66 times for canned tuna. This high PC of fresh tuna is due to the quality of tuna. Subsidy Ratios to Producers (SRP) of fresh and canned tuna are not much different i.e., being 0.06 and 0.05 respectively. Overall policies has not been much different between these two systems of production while fresh tuna producers can earn better profits and the society is better off in case of canned tuna. Domestic resource cost ratio (DRC) and private cost ratio (PCR) of fresh tuna are more sensitive to change in value of all output and catch yield. For canned tuna both are more sensitive than the change in value of all output, processing convertion ratio and catch yield.
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