An analysis of the comparative and competitive advantage of sago processing business

Abstract

The purpose of this study was (1) To analyze the level of comparative and competitive advantage of sago processing enterprises in East Kolaka Regency? (2) Examine the impact of government policy on the comparative and competitive advantage of sago processing enterprises in East Kolaka Regency. The study employed the Policy Analysis Matrix (PAM) analysis. The population of the study was sago-processing farmers in the sub-regency of Tirawuta of East Kolaka regency. The samples were 15 respondents. The variables of the study were output price, foreign costs, domestic costs, private price, and shadow prices. The results showed that the sago processing business in East Kolaka Generally sago processing business in East Kolaka have a positive level of comparative advantage with the value of Domestic Resource Cost Ratio (DRCR) of 0.27 and has a positive level of competitive advantage with value Private Cast ratio (PCR) 0.31. This suggests that the sago processing business in East Kolaka feasible to develop even enhanced in the future. Government policies that have not been in favor of sago processing business in East Kolaka lead this comparative effort advantage tend to decrease with Effective indicator Protection Coefficient (EPC) of 0.76, while the output policy causes Transfer Input value of IT value of Rp. (134.900). This indicates the absence of a purchase price policy on output area (Aci sago).