| During the last decade the Cypriot agricultural sector has been declining in terms of most indices in the economy, mainly due to the spiraling growth of tourism, as crucial investment outlays were diverted from agriculture to tourism; the most important factors of production being land and labor due to substantially higher yields accruing to both. The Domestic Resource Cost (DRC) revealed that the three products studied for the period 1997 to 2000, i.e. tomatoes, oranges and olive oil had a comparative advantage. However, the opening of the European market with EU accession led to the substantive undermining of competitiveness of agricultural products and to the reduction of the value of exports. It is believed that DRC ratios would be higher today that... |
