ANÁLISE DA PRODUÇÃO DA CANA-DE-AÇÚCAR NO ESTADO DE PERNAMBUCO: UMA ABORDAGEM PELOS CUSTOS DOS RECURSOS DOMÉSTICOS (CRD)

Abstract

The comparative advantage approach discussed in this paper takes into account a new operational concept of opportunity cost. This approach, far from being an academic obssession, becomes a necessity in today’s world with its high speed international relationships. The Domestic Resources Cost method plays a crucial role in the evaluation of economic sectors, based on concepts like allocative efficiency, shadow prices and opportunity costs. The paper examines the sugar cane productive sector in Brazil and compares crop advantages in the states of São Paulo and Pernambuco. Six regions in Pernambuco should examine its production and opportunity costs, considering the possibility of complete erradic ation of the crop, unless a decision is taken concerning the acceptance of a considerable burden by the local communities.