Research Article
Effects of Declining Prices on Competitiveness and Comparative Advantage of Tea Production in Nigeria
Author(s): Yahaya AT*, Oladokun YOM, Ogunwolu QA and Oluwafemi ZO
The study examined the effect of price changes on competitiveness and comparative advantage of tea production in Nigeria. One hundred and two (102) farmers were randomly selected from 3 tea producing communities in the study areas. Primary data were collected from the sampled respondents with the use of structured questionnaires. The data collected were analyzed using Policy Analysis Matrix (PAM). The results from the analysis showed decreasing domestic price of output when input prices are fixed resulted to tea production becoming uncompetitive. At each successive decrease (20%, 40% and 60%) in domestic price, tea production will become less competitive (#52,483, #32,556, and #12,676). Furthermore, in this scenario, world price was kept constant hence, no effect on comparative advantage variables (SP, DRC and SCB). The protection coefficients (NPC, EPC and PC) are a smaller amount to.. View More»