Abstract
Abstract: This study aims to analyze the competitiveness and orientation of Brazilian and Beninese cotton exports in international trade from 2006 to 2018. The cotton category in this article refers to “neither carded nor combed” (HS: 5201). To measure competitiveness, we chose to calculate the Revealed Comparative Advantage Index (RCAI) and Symmetric Revealed Comparative Advantage Index (SRCAI), proposed by Balassa (1965) and Laursen (1998) respectively. The Regional Orientation Index (ROI), proposed by Yeats (1997), of cotton for Asia and EU-28 is used. The data were collected from the International Trade Center (ITC) /Trade Map and the United States Department of Agriculture (USDA). The results found indicate that the Brazilian’s and Beninese’s cotton has been increasing values and above the unit showing its competitiveness in the international market. In addition, Benin was more competitive than Brazil because it has, on average, a higher SRCAI than Brazil (0.99 and 0.7 respectively). Concerning the ROI, it was found that Brazilian and Beninese cotton exports are strongly directed towards Asia, the main consumer market for Beninese and Brazilian cotton. As for the EU-28, both Benin and Brazil do not direct their cotton sales to this economic block.
Highlights
The world export of agricultural and livestock products increased by 97.03% between 2006 and 2018, from US$ 945 billion to US$ 1.86 trillion respectively, and at the same time, its share in world exports has increased by 2% from 8% in 2006 to 10% in 2018 according to the World Trade Organization (2019) [WTO]
The present study aims to analyze whether Benin and Brazil present Revealed Comparative Advantages for cotton exports, and to analyze the Regional Orientation of this commodity for the main consumer markets
This paper analyzes the competitiveness of Beninese cotton exports between 2006 and 2018 about Brazil, the second-largest cotton producer in international trade
Summary
The world export of agricultural and livestock products increased by 97.03% between 2006 and 2018, from US$ 945 billion to US$ 1.86 trillion respectively, and at the same time, its share in world exports has increased by 2% from 8% in 2006 to 10% in 2018 according to the World Trade Organization (2019) [WTO]. When analyzing the particularity of the cotton sector, compared to the year 2006, the world cotton export in 2018 reached a 46.10% growth, going from $10, 89 billion in 2006 to $15.91 billion in 2018 according to International Trade Center (2020) [ITC]. As informed by the Associação Brasileira dos Produtores de Algodão (2020) [ABRAPA] database regarding the global export dynamics, “this industry involves more than 350 million people in its production, from farms to logistics, ginning, processing and packaging”. In this context, Benin, a West African Country, in the same period of 2006-2018, had a 301.61% increase in agribusiness exports from $560 million in 2006 to $2.249 billion in 2018 (World Trade Organization, 2019). Benin is the world’s sixth-largest exporter of cotton and the first in Africa in 2018 followed by Mali, Burkina Faso, and Ivory Coast (International Trade Center, 2020)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
