Assessing the Competitive Advantage of Ecuador’s Shrimp Industry in the Global Market Using the Balassa Index for 2018–2022

Abstract

Increased shrimp production in Ecuador might significantly boost the nation’s economic development while allowing for the sustainable exploitation of its natural resources. Business owners in Ecuador still require diagnostic tools for investment, marketing, and production planning. Therefore, this study aimed to evaluate the competitive position of Ecuador’s shrimp industry and direct competitors in the global shrimp market. Export data on shrimp from the International Trade Centre and Ecuador’s National Chamber of Aquaculture were used for the top five shrimp-exporting countries. The period 2018–2022 was chosen as the information was available at the start of the research. Balassa’s methodology was employed for the competitiveness analysis, and statistical analysis was conducted to validate the findings. The results show Ecuador has a significant competitive edge compared to its main rivals, Argentina, India, Indonesia, and Vietnam. This analysis indicates that Ecuador has the potential to win bigger market shares in the global shrimp trade despite being placed 70th and 97th, respectively, in the 2017–2018 Global Competitiveness Index and the 2018 Logistics Performance Index. Therefore, it is necessary to establish strategic production plans for Ecuadorian shrimp enterprises to adapt to the global shrimp trade demands and to advance production and supply chain technology so that Ecuador can access additional worldwide markets.