Assessment of comparative advantage in rice cultivation in Bangladesh
2002
Shahabuddin, Q. | Hossain, M. | Mustafi, B.A.A. | Narciso, J.
This paper examines the comparative advantage of rice using two indicators: net economic profitability and domestic resource cost ratio. The profitability estimates and estimated domestic cost ratio suggest that Bangladesh has a comparative advantage in rice production except for the upland aus crop and the deepwater aman rice. So, diversification in favor of nonrice economic activities for both uplands and extreme lowlands is socially justified. The comparative advantage in the cultivation of modern varieties is higher for wet-season aman rice, which is relatively low input-intensive, than for dry-season boro rice, although the average yield is substantially lower for the former than for the latter. Although there has been a substantial decline in the real rice price in both the domestic and world market, the comparative advantage has improved over the last two decades.
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