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Periodical article | Leiden University catalogue | WorldCat |
Title: | Domestic resource costs for Sudanese manufacturing industry: a preliminary analysis |
Author: | Umbadda, Siddiq |
Year: | 1985 |
Periodical: | Development and Change |
Volume: | 16 |
Issue: | 1 |
Period: | January |
Pages: | 147-158 |
Language: | English |
Geographic term: | Sudan |
Subjects: | industry efficiency |
External link: | https://doi.org/10.1111/j.1467-7660.1985.tb00205.x |
Abstract: | The Sudanese manufacturing industry (overwhelmingly import-substituting) did not develop spontaneously but was created artificially through concessions extended to it by the government. Protection distorts relative prices of inputs and outputs and causes inefficiencies in resource allocation which entail a cost to the economy as a whole. This is because inter-sectoral and inter-industry specialization is interfered with; as a result, resources may move from low-cost to high-cost industries, resulting in what can be thought of as an excess Domestic Resource Cost (DRC) of saving or earning foreign exchange. The DRC indicates a country's comparative advantage in producing a particular commodity. The DRC can be used to measure the real cost (in terms of opportunities foregone) of protection if such a commodity is allowed to bemanufactured locally. A DRC scale may be used to shew the degree of efficiency (or inefficiency). This paper investigates this broad measure of efficiency as it pertains to the protective system prevailing in Sudan during the post-Independence period. App., notes, ref., tab. |