MEASUREMENT OF BEEF PRODUCTION COMPARATIVE ADVANTIGE IN IRAQ

Abstract

Livestock production generally and beef production in particular is characterized by the underdevelopment. Of the modes of its production and the low productivity of factors of production in addition to the lack. Of farmers skills which all of them affected on the size of beef production in Iraq. This was reflected on the need for the beef import to fill the gap between domestic demand and domestic production. The objective of this study is to calculate private and social profitability coefficients and comparative advantage coefficient for beef in Iraq. This was achieved by using policy analysis matrix, PAM, technique through which the efficiency, profitability and the competitiveness of domestic beef production on world level can be determined. By estimation of policy analysis matrix elements, revenue transfers I, tradable input transfers J, factors transfers K, were calculated which were 3276.11 dinars/1kg.beef, -465.91 dinars/1kg beef and -101.02 dinars /1kg beef consecutively. Net transfers L, was about 3843.04 dinars/1kg. beef which could be explained that government intervention was in favor of beef producers in short run, The results also showed that domestic producer gets economic profits by investing in beef projects and Iraq does not achieve a comparative advantage in beef production in spite of positive protection for domestic beef producer and subsidiesfor tradable inputs , The study concluded some recommendations most important of which is to adopt tradable input subsidy in short run in the hope that producer performance will improve and becomes competitive on the world level in the medium and on the long run.