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Conceptual Model Of Competitiveness And Comparative Advantage In Agricultural Trade

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  • Haley, Stephen L.

Abstract

Many economists believe that the United States is losing its competitive edge in world agricultural trade. Some believe that this short-term loss in competitiveness will affect the Nation's ability to be a major producer and exporter in the longer term. 'Oils report develops a simple general equilibrium model in which changes in competitiveness can be evaluated with respect to their longer term consequences for U.S. agricultural production and trade. The model extends the basic Ricardo-Viner trade model into a dynamic specification that recognizes the importance of international capital flows and monetary policy. All traded goods are treated as middle products that must be processed by domestic factors of production before final consumption. The role of input markets within all countries is stressed. Investment activities provide a role for private firms and for government policy in directing medium-term changes in the competitive position of particular sectors.

Suggested Citation

  • Haley, Stephen L., 1987. "Conceptual Model Of Competitiveness And Comparative Advantage In Agricultural Trade," Staff Reports 277948, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:277948
    DOI: 10.22004/ag.econ.277948
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    References listed on IDEAS

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    Cited by:

    1. Kevin Chen & Lian Xu & Yufeng Duan, 2000. "Ex-Post competitiveness of China's export in agri-food products: 1980-96," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 281-294.

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