Abstract:
The importance of studying economic comparative advantage and economic competitive advantage relies on the fact that this approach helps define policies to better guide the production systems to ensure income to producers and transform agricultural production in a sustainable economic activity. While comparative advantage allows the analysis of efficiency, competitive advantage focuses on the effectiveness of processes of production. The present study is confined to the analysis of the efficiency, effectiveness and distortion of sesame, and cotton markets. The overall objective of the study was to examine the economic comparative and competitive advantage of cotton and sesame crops produced by the household family by the family sector located at Namialo, Meconta district in Nampula province. The selection of these crops were based on the current dynamics verified in the cash crop markets and accordingly to the preference demonstrated by this producers for one crop to another, which despite identical production processes, prices are different both in the local and international market. The specific objectives of the study were: (i) analyse net margins of sesame and cotton production; (ii) analyse the economic comparative and competitive advantage of sesame and cotton; and (iii) analyse the impact of agricultural policies on encouraging farmers towards the production of sesame and cotton. As a method of analysis was applied the policy analysis matrix (PAM), which allowed us to calculate both economic comparative and competitive advantages indicators, as well the indicators of market protection and distortion due to the policies adopted in country. To determine the indicators the crop production budgets was developed from data collected in the field. The results showed that the two crops presents positive net margins as well competitive and comparative advantages however, the cotton producer is penalized and unprotected due to distortion of agrarian policies in force and is subject to a tax on the purchase of inputs and marketing of its product. Unlike cotton, sesame producer is protected and subsidized by agricultural policies.
