Abstract
The paper investigated Malawi’s intra-industry competitive advantage. Using Balassa (1965) methodology, industries in which Malawi has competitive advantage were identified. Malawi has significant competitive advantage in textiles, vegetable products, machinery/ electricals, foodstuffs and miscellaneous industries. In other industries, there is very little evidence of competitive advantage. Most of Malawi’s exports are in primary form. It is recommended that Malawi should strive to add value to its exports as well as attract foreign direct investment in order to improve efficiency.
Highlights
A country can participate meaningfully in international markets if it is able to produce its products efficiently
This paper investigates Malawi’s intra-industry competitive advantage
Competitiveness refers to the degree a country under a trade without hindrances is able to produce products or render services in such a manner that they meet the standards of external or global markets and in so doing, it increases real incomes for its nationals (President’s Commission on Industrial Competitiveness, 1985)
Summary
A country can participate meaningfully in international markets if it is able to produce its products efficiently. Competitiveness is the ability of a country to produce a product or a service and sell it in the global market at a profit on its resources (Scott & Lodge, 1985). Competitiveness refers to the degree a country under a trade without hindrances is able to produce products or render services in such a manner that they meet the standards of external or global markets and in so doing, it increases real incomes for its nationals (President’s Commission on Industrial Competitiveness, 1985). The World Economic Forum (1990) has highlighted factors which determine competitiveness These factors are listed as: domestic economy; internationalization; government, finance, infrastructure; management; science and technology; and skills available. Export led competitiveness helps the domestic economy to expand and efficiently allocate its resources. Productivity provides a solution to issues relating to nonprice competitiveness (Fanelli & Medhora, 2002)
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