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The effect of policy on the Southern African Valencia industry

  • Political Science


The policy analysis matrix (PAM) was used in this study to determine the definable impact of policies on the Southern African Valencia industry. By using a PAM the effects of divergences between private and social values of revenue, tradable inputs, domestic inputs and profits are determined. With the calculation of the private cost coefficient, domestic resource cost coefficient, nominal protection coefficients on tradable outputs and inputs, effective protection coefficient, profitability coefficient and the producer subsidy ratio the effect that government policies had on the Southern African Valencia industry was highlighted. The results show distortions in the market, comparative advantages and the sensitivity of the industry.

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