224 NPCO value is 1.30 NPCO1 and NPCI value is 0.99 NPCI1 which
means output produced and input used in this business receive protection which then allow pangasius fish farmers to sell their product 30 higher
and buy their input price 1 lower than the world market prices. Table 3. PAM sensitivity analysis results
Percentage change
Pangasius fish fillet FOB price
Alternative feed price
Official exchange rate
PCR -
0.73 -
DRC -2.54
1.30 -2.54
As seen in Table 3, the percentage change of DRC with respect to the change in the pangasius fish fillet FOB price is -2.54, implying that the
comparative advantage is improved by 2.54 whilst the competitive advantage remains the same. The percentage change of PCR and DRC with
respect to the change in the alternative feed price is 0.73 and 1.30 respectively. Those mean that the competitive advantage is getting worse
by 0.73 and the comparative advantage is getting worse by 1.30. The percentage change of DRC with respect to the change in the official
exchange rate is -2.54, implying that the comparative advantage is improved by 2.54 whilst the competitive advantage remains the same.
4. Conclusion
Pangasius fish grow-out business in KoGa has strong competitive and comparative advantages. Trade policy on output, especially policy on
controlling the imported pangasius fish, has improved the local pangasius fish farmer competitive and comparative advantages. Policy on inputs is not
really providing protection to the pangasius fish farmers since their input price was only 1 lower than the world market prices. Divergences in
domestic factors are limited to feed pellet machine subsidy which helps the farmer to produce low cost fish feed with local and sustainable ingredients.
Comparative advantage of pangasius fish farming in KoGa is sensitive to the changes in pangasius fish fillet FOB price, alternative feed price, and
the official exchange rate whilst the competitive advantage is sensitive only to the changes in alternative feed price.
5. References
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[7] J.P. Gittinger. 1984. Economic Analysis of Agricultural Projects. Economic Development Institute. The World Bank.
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