AN ECONOMIC RESPONSE OF EXPORT PERFORMANCE AND COMPARATIVE ADVANTAGE OF RICE TRADE BETWEEN CHINA AND VIETNAM

Trinh Thi Viet Ha,M.N Ishaq,M.A Faiz,R Rasheed,Li Shuang

doi:10.18551/rjoas.2017-01.18

Abstract

Rice is an important crop that fulfill the domestic food requirements and alsoa source to earn foreign exchange for the economy. This particular study was conducted with an objective to explore the rice export trends between China and Vietnam. Another major objectivewas to assess the export competitiveness and concentration commodity among cerealsfor both countries. For the research analysis, time series data from the year of 1961 to 2013 regarding rice production,cultivated rice area, rice export quantity and value were processed to calculate the compound growth, instability and direction of export.Results of the trend analysis demonstrated that Vietnam export of rice may increase in coming years and for the case of China, the export of rice may decrease in future. The growth rate analysis of both countries suggests that export quantity of rice were found to be 2.70% (China) and 6.10% (Vietnam).In terms of instability, during the period-I China was more instable as compared to Vietnam in terms of quantity and value, while during the period-II China export of rice was more stable than Vietnam.The direction of trade between both countries presented significant results as compared to the other neighboring countries. The nominal protection co-efficient (NPC) for export of rice from Vietnam were found to be lower than unity, which explained that Vietnam rice is favorable export commodity than China.

Highlights

In 2004 the General Assembly of United Nations (UNO) had declared rice as an international year of rice.This happens because almost half of the world’s population consumed rice as staple food in their cuisine
To initiate the country’s integration process with world economy, Doimoi reforms were launched in 1986. These policies encouraged the development in agricultural sector and resultantly the rice production increased to a greater extent (Yearbook 2012)
The concentration of China cereals was higher in the begening of the time period, while after it loose its concentration. This comparative study was carried out with a focus to measure the performance of rice export between China and Vietnam

Summary

Introduction

In 2004 the General Assembly of United Nations (UNO) had declared rice as an international year of rice.This happens because almost half of the world’s population consumed rice as staple food in their cuisine. According to FAO (2013) the Thailand and Vietnam were the largest rice exporters and these countries contributed for more than 50% in world rice exports. Food crops have beenconsidered the most important sector of Vietnam economy and rice crop accounts for 85 percent in it. After undergoing througha series of policy reforms during the past few decades, the pattern of rice production and trade had significantly changed between China and Vietnam. To explore the precise impacts of these policy reforms on trend and instability for rice export, this study was carried out by analyzing the time series data of rice trade. The particular objectives of this research article were to conduct a trend analysis for rice exports between China and Vietnam; estimate the level of rice export instability; estimate the export competitiveness and analyze the inward/outward direction of rice trade betweentwo countries

Methods

Results

Conclusion