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Applying the DRC (Domestic Resource Cost) Index to Evaluate the Competitive Advantage of Dak Lak Coffee

DOI: 10.4236/oalib.1102727, PP. 1-8

Subject Areas: Statistics and Econometrics

Keywords: DRC Index, Evaluate the Competitive Advantage, Dak Lak, Coffee

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Abstract

In the past few years, the volatility of the world price market and the intrinsic weaknesses of production coupled with skepticism from experts as well as households had effects of coffee production [1], that’s why the purpose of the article is to use index DRC (Domestic Resource Cost) to confirm the effectiveness of the coffee plantations in Dak Lak, through DRC index we not only assess competitive advantage of the coffee over other crop products in Dak Lak but also can find agents that affect competitiveness and find a way to enhance the competitiveness of products. The result of the research confirms that comparative advantages of coffee products are very sensitive to fluctuations in the price of coffee exports.

Cite this paper

Minh, H. T. , Trang, D. T. N. and Chen, J. (2016). Applying the DRC (Domestic Resource Cost) Index to Evaluate the Competitive Advantage of Dak Lak Coffee. Open Access Library Journal, 3, e2727. doi: http://dx.doi.org/10.4236/oalib.1102727.

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