The effect of policy on the Southern African Valencia industry
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The policy analysis matrix (PAM) was used in this study to determine the definable impact
of policies on the Southern African Valencia industry. By using a PAM the effects of
divergences between private and social values of revenue, tradable inputs, domestic inputs
and profits are determined. With the calculation of the private cost coefficient, domestic
resource cost coefficient, nominal protection coefficients on tradable outputs and inputs,
effective protection coefficient, profitability coefficient and the producer subsidy ratio the
effect that government policies had on the Southern African Valencia industry was
highlighted. The results show distortions in the market, comparative advantages and the
sensitivity of the industry.