I would like to analyse the performance of sections of agriculture such as crops and determine their likelihood to succeed on international markets thus justifying promoting investment in such subsectors. The interest covers agriculture, manufacturing and mining sectors? Investment opportunities are being considered in these sectors.
I think that you should start from microeconomic model for each product. You need also to define production functions. The prices of inputs (wage, interest on capital, land rent) will determine the cost of final products. But then you need to take into account transport cost as well. Agricultural products and minerals are typically bulky products, with high fraction of transport costs. I have an article about that:
https://www.researchgate.net/publication/228419891_A_Land_Far_Away
Article A Land Far Away
Dear Yuri,
Thank you for your response and article that you sent. I will go through it and if I have further questions, I will get back for any clarifications.
Many thanks once again
Lindani
Dear Lindani!
Your question is quite debatable and think it has not clear answer. But I suggest you finding the character of international markets for these products. Especially the trend of demand and supply, production curve, number of players in the markets and so on. Then you can analyse the competiveness in those markets.
Yours,
Ehsan
see if it helps
INTERNATIONAL COMPETITIVENESS
LABOR PRODUCTIVITY LEADERSHIP AND
CONVERGENCE
AMONG 14 OECD COUNTRIES
Lindani, you are asking a real business question. Economics can give an answer for it in parts. What Ehsan is suggesting compliments my comments. Yes, in the end you will have a kind of oligopolistic game for the share of your product in some particular market. Here you can use game theory to find an equilibrium. But before that you need to learn demand function and parameters about your costs. Transport costs that I have mentioned are often neglected in classical economic theory. Note that there are also trade tariffs and sometimes sanctions.
I believe that we have to define or make clear what international competitiveness means. In this regards, I have posted many answers in Hubert Escaith's (WTO) question:
How can we reconcile Ricardo's theory of comparative advantages with competitive advantages?
https://www.researchgate.net/post/How_can_we_reconcile_Ricardos_theory_of_comparative_advantages_with_competitive_advantages
I hope it may give some suggestions to your interests. See also my question which did not get attentions of many people.
How do you differentiate comparative and competitive advantage?
https://www.researchgate.net/post/How_do_you_differentiate_comparative_and_competitive_advantage
Many thanks Peter. Tradesift looks interesting. I will take time to go through it.
Dear Lindani,
Please contact me for more info or go to www.tradesift.com
Peter
I am not quite familiar with agriculture, and mining? But in manufacturing sectors or business of manufacturing, I have written a Chapter of a book on International or Global Manufacturing Competitiveness.
Take a look...
Chapter Volume I; Chapter 1: MANUFACTURING COMPETITIVENESS
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