New rice technology and comparative advantage in rice production in the Philippines

The aim of this study is to assess the comparative advantage in rice production in the Philippines for the past three decades since 1966. We have found that the country gained sharp improvement in comparative advantage in rice production in 1979, when yield rose remarkably due to the diffusion of pest‐ and disease‐resistant modern rice. Beginning in 1986 however, the country appears to have slowly lost its comparative advantage due to the decline in rice prices, stagnation in rice yield and rising cost of domestic factors. By 1990, the country completely lost its comparative advantage in rice production.