Maize is considered one of the most important crops in Egypt, it contributed in
2004 by about 13% of the total crapped area. In the last years the Egyptian economy
faced many economic structural changes either at the national or international level.
as the government adOpted structural adjustment programs and entering the world
trade organization (WTO).
The Research problem and the objective of the study focused the effect of
unbalanced governmental intervention in the price polices and the distortions on the
production of maize.
Data of the study were collected from different sources through the period
subject to study (1985-2004).
The study discussed the analytical framework with respect to policy analysis
matrix and partial equilibrium model and the meaning of interpretation, i.e., nominal
protection coefficient, nominal protection rate. effective protection coefficient.
effective protection rate, and domestic resource cost.
The results of policy analysis matrix indicates that there is a protection with
respect to the producers of maize according to the nominal and effective protection .
coefficients that reached about 1.12 and 1.17 respectively, and there is no
comparative advantage in producing maize according to domestic resource cost that
reached bout 1.13.
Also. the results of partial equilibrium model. indicates that the net economic
loss for maize reached about 43.84 L.E. million at the average of the period subject
to study. so the improving in efficiency of inputs allocation. and rational in
consumption expenditure led to decrease the net economic loss in maize.
Finally. the study recommended improving and increasing the comparative
advantage in producing maize. from through increasing the value added of maize
crop. and yield productivity.