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Comparative Advantage in Dairying: An Intercountry Analysis within the European Community

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  • Murphy, Eithne

Abstract

The objective of this summary is to assess the relative comparative advantage of countries within the European Community in relation to dairying, using the methodology of domestic resource cost. Domestic resource cost measures the opportunity cost of generating a unit of domestic value added. The lower the ratio of opportunity cost to domestic value added, the greater a country's comparative advantage in that activity. Three variants of the method are applied. The results indicate that, within the European Community, the Netherlands and Belgium are the countries which have the greatest comparative advantage in dairying. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Murphy, Eithne, 1989. "Comparative Advantage in Dairying: An Intercountry Analysis within the European Community," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(1), pages 19-36.
    • Handle: RePEc:oup:erevae:v:16:y:1989:i:1:p:19-36
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    Cited by:

    1. Lassen, Birthe J. & Isermeyer, Folkhard & Friedrich, Carina, 2009. "Regionaler Strukturwandel in der deutschen Milchproduktion," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(05-06), pages 1-10, July.
    2. Klaus Drescher & Oswin Maurer, 1999. "Competitiveness in the European dairy industries," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 163-177.
    3. Wiebelt, Manfred & Herrmann, Roland & Schenck, Patricia & Thiele, Rainer, 1992. "Discrimination against agriculture in developing countries?," Open Access Publications from Kiel Institute for the World Economy 458, Kiel Institute for the World Economy (IfW Kiel).
    4. Itty, P., 1996. "Profitability, efficiency and comparative advantage of African cattle meat and milk production: the case of trypanotolerant village cattle production," Agricultural Economics, Blackwell, vol. 14(1), pages 33-44, April.
    5. Birthe Lassen & Friederike Schierholz & Jürn Sanders, 2011. "Zukünftige Entwicklung der Milchproduktion in Niedersachsen," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 4(1), pages 217-243.

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