Methodology for Measuring Protection and Comparative Advantage

Page 1

.

by

t_o_d

_mmon the

to al.,i: of

sector

the izdlvldual

compa-_oat£ve advantage

of

the

of pr!c_

/r, terven_.ion policies

sector°

For _,he former,

sector

on the

t, he _easure

_'esource cost, (DRC) of e_rnln_

stud.lea is

and_ retur_,

further, to

as attempt: to assess to measure

the. producers

in the.

foreign exchange,

For the

nominal, pxo_e,ctlo_,lrates. (NPI_,> _ i_pllt_.L .tariffs (IT), ef;ectlve

In

this a'ppe,_._d..ix, _e s_-

and.pro_edux,,e_ _:ha._: were used. we a_:temp_ to clarify well as t:onoto

C_apara_ive £n savi_g sxports

Inthe

_ut ........... to acco_plIsh

protectlon

rates

to est_a_.t'._

pro_ectlon

.(NEFR) were calc_llated.

-th_.se. measures,

In add.ICion, as

and Impl:'l.cat_ns of. these measures,

_xchange

r_fer_,

t,:_ _:hv reined.re

_hrdugh

:t_.porC

long run the natLo_ _h±e

_Ith maximum

_fi,:iency

_b_:_ut:h;n

_._s.e, _, " • ,.a._.aace.

or it_

of

an

activity

ea_:xzJ.n_, it.

foreig_

through

exchange

c:f_-te._;.en_,,7 me_s .to do_:_o at least

:.used,.Accordlngly., if O_e actlv[ty

Less at the margin::Indome, stin res_x_rce,cost_

advantageous

latter,

c-oresof-_hel r sbO_tc:_mi_-tg__.,..

In social value of resources

_oreig_ exchange

"

ou_: _ha var.lous def_m;ifloss, assumpt_ons,

the meaning

advantage

foreign

e£fect

_sed-Ir_ _,Ii:studies was the domes__e

and. e,vL_

rates • (F2R).,_armd _et effective

the

than a_.other activity,

budget; cost

requires

to save or ea_:n a unit o£

the former-is

compar_t_ve,ly-

In relation, Co _he latter.. 'l_:_-us ect_,vlt_es can he ranked .at

e " ReseBrch Fellow and Consu!Lant, respe.e£.i,vel.y, a_ the Philippine " Institute fo:_ Development $tudles. _U'_l,_. short paper is an appendix Co the PIDS research study _mEconom_,/ Policies and Ph_.llpplne Agriculture conducted••by Crls_,.in_C. David and Assocla_es,


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