Show the results of cotton Policies Analysis Matrix (CPAM) country
policy to product and price cotton local through period before Applying an
economic liberalization policy of Egyptian cotton (1979-1993) it makes taxes
indirect on agricultural producers to give less price not the same price where
get the producer equal 33% from the real price not the some world price arid
he gives about 67% taxes indirect from world price. But through the second
period after applying an economic liberalization policy Egyptian cotton (1994-
2003) the producer get about 45% production price as world price so applying
an economic liberakzatìon policy of Egyptian cotton it make a little different
between local price and world price for Egyptian cotton.
As for production resources found support about 24% and the
producer cost about 76% from total cost so before applyíng an ecocLomc
beraIization policy, but after applying an economic IiberaIizaon policy the
support is less about 14% and the producer cost about 86% frrri total cost
that mean this policy it causes decrease irr support from the country.
As riel taxes which the producer do it is about 69% added value far
Egyptian cotton wo4id price, but after applying this policy it decreases to 64%
that mean this policy makes increase in added value for Egyptian cotton and
a'so decrease exchange prices in local market for production resources and
producfor.
Egypt has comparative advantage to product cotton in the world
markets, this comparative advantage about 0.111 before applied the policy,
but after applied the policy the comparative advantage is 0.116 that mean
Egypt has bigger advantage to produce cotton the. results of this study are,
the policies were applied before (1979-1993) it was not correct to help the
producer because there is higher taxes but after applied the policy
(199402003) taxes are decrease.