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Changing agricultural comparative advantage

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  • Abbott, Philip C.
  • Thompson, Robert L.

Abstract

Special circumstances in the agricultural sector have limited the use of comparative advantage in addressing the planner's dilemma of allocating investment between industry and agriculture and in examining the doctrine of food self‐sufficiency. A three‐factor model of agricultural trade, extending earlier models, is used to address some of these special circumstances and to formulate a theory of agricultural comparative advantage under changing economic conditions. Emphasis is placed on the short‐run fixity of sector‐specific capital stocks, the role of qualitative differences in land (natural resource) endowments, and on non‐homothetic preferences. In addition to insights on agricultural comparative advantage, implications for project evaluation are considered.
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Suggested Citation

  • Abbott, Philip C. & Thompson, Robert L., 1987. "Changing agricultural comparative advantage," Agricultural Economics, Blackwell, vol. 1(2), pages 97-112, June.
    • Handle: RePEc:eee:agecon:v:1:y:1987:i:2:p:97-112
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    Cited by:

    1. Timothy Williams, 2015. "Reconciling food and water security objectives of MENA and sub-Saharan Africa: is there a role for large-scale agricultural investments?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1199-1209, December.
    2. Todd Sanderson & Fredoun Z. Ahmadi‐Esfahani, 2009. "Testing Comparative Advantage in Australian Broadacre Agriculture Under Climate Change: Theoretical and Empirical Models," Economic Papers, The Economic Society of Australia, vol. 28(4), pages 346-354, December.
    3. Sanderson, Todd & Ahmadi-Esfahani, Fredoun Z., 2010. "Climate change and Australia’s comparative advantage in broadacre agriculture," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96493, New Zealand Agricultural and Resource Economics Society.
    4. Haley, Stephen L., 1987. "Conceptual Model Of Competitiveness And Comparative Advantage In Agricultural 4 -5-71 Trade," Staff Reports 277948, United States Department of Agriculture, Economic Research Service.

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