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This papcr advanccs consideration of the Heckscher-Ohlin (H-O) theory of comparative advantage to agriculture in a dynarnic setting. The dynarnic relationship among trade 110ws, resourcc supplies, and factor contents is studied.The view that special circurnstances in the agricultural scctor render the H-O theory inapplicable as a guide ro agricultural tradc is challenged. Consistent with the H-O theory, the results suggest that changing world patterns of resource abundance are an important explanation of the evolving structure of world trade in agriculture commoditics.

Consumer behavior and prospective changes in demand of food product have a significant impact on production and distribution decisions. Consumer responsiveness to changes in prices, income and other demand determinants is very important to production and market decision-makers. The present study estimates demand responses for selected fruits and vegetables in Oman using consumer aggregated national data. The main objective is to generate information needed for making public as well as private decisions. Results indicate that most fruit and vegetable consumers respond to price, and income changes in the expected manner. Responses are different from one commodity to another depending on its nature and importance in the consumer's diet habits. In a few cases income is not a significant determinant of the demand. Moreover, many fruits and vegetables have shown a relationship of substitution and complementary consistent with Omani diet. These results are useful in farmers and distributers to allow them to adjust their production and marketing services according to the consumer’s response.

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