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

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.