Abstract

The objective of this paper was to assess the relative comparative advantage of countries within the European community (EC) in relation to dairying, using the methodology of domestic resource cost (DRC). DRC measures the opportunity cost of generating a unit of domestic value added. The lower the ratio of opportunity cost to domestic value added, the greater a country‘s comparative advantage in that activity. Three variants of the method were applied. The results indicate that within the EC, the Netherlands and Belgium are the countries which have the greatest comparative advantage in dairying.

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