Analysis of comparative advantage and agricultural trade in Mozambique

The research was carried out in the country"s 10 agroecological regions, which comprise three macro- agroecological zones -- northern, central, and southern -- based on the type of climate, vegetation, altitude, soils, and farming systems. Domestic resource ratio costs (DRCs), relative to market prices, were used as the major measure of CA. Study results show that Mozambique has CA mainly for the crops considered in this study. Specifically, Mozambique enjoys CA in agriculture in the northern agroecological zone, mainly in the Cabo Delgado, Nampula, Niassa, and Zambezia provinces, where strong DRCs were verified. The use of potential technologies would improve the CA of the provinces located in the northern and central agroecological zones. In the southern agroecological zones, by contrast, technological change has only a marginal effect, since the existing local technologies in Gaza and Inhambane provinces already have strong DRCs. The production of maize has a CA in the northern agroecological zone using local, improved, and potential technologies. Crops like cotton and sunflowers have a CA in the northern and central agroecological zones. The production of potatoes, sorghum, beans, cowpeas, onions, and cassava has a CA for the three technologies considered in the three agroecological zones. The potential centers for the production of the major crops such as maize, sorghum, beans, and cassava are located in the north, but the centers of consumption are in the south. There is strong evidence that trade within the country is a possibility. However, because of the high cost of transport, storage and processing, it may be very costly to attempt to transport agricultural produce from Cabo Delgado to Maputo. Policies should be developed to improve infrastructure to allow for the flow of agricultural products from the north to the south. It is important to ensure that increased production can be collected and sold in a timely fashion, so the producer has an incentive to produce and meet the needs of consumers. Includes references.