Product prices and technological choice: The case of the international cocoa processing industry

Economic appraisals have often relied heavily on the factor use and factor price characteristics of process. In this article we treat impact of product characteristics in choice of technology. Product characteristics are specially important in the earlier stages of manufacturing, namely, commodity processing. The study elaborates also on circumstances which lead to the emergence of different and fluctuating relationships between product prices in different countries, respectively, developing and developed, and their implication for the choice of technology in these countries.