Abstract
Competitiveness is the ability to trade products that meet the requirements of global demand for better price, quality, and quantity. International competition in the agricultural and food industries has been significantly increased due to globalization. Furthermore, labor-intensive countries are losing competitiveness due to lack of local value addition and other development efforts. This study aims to examine the competitiveness of the mandarin industry for the world’s 15 leading mandarin exporters using revealed symmetric comparative advantage (RSCA). An attempt was also made to assess the effect of productivity growth and real effective exchange rate on the competitiveness of the mandarin industry through panel regression analysis. The results showed that RSCA patterns vary between the selected countries and only five countries, that is, Morocco, Spain, Pakistan, Turkey, and Peru have a comparative advantage in mandarin exports while all other countries have a comparative disadvantage. The highest change in the RSCA value was seen for Pakistan which gives a good indication of the status of the country in the development of its mandarin industry. For Pakistan, there is a need to explore the new high-value market to further exploit this comparative advantage and to increase export earnings.
Highlights
The term competitiveness is defined as the ability to face competition and to be successful while facing international competition
The values of revealed symmetric comparative advantage (RSCA) range from À1 to þ1, which means a value higher than 0 shows the country’s specialization in the mandarin industry, and a value less than 0 showed the country has a comparative disadvantage in the mandarin industry
It is evident from results that only five countries Morocco, Spain, Pakistan, Turkey, and Peru show specialization in mandarin and Morocco, with the highest value of RSCA, shows the highest comparative advantage in the mandarin industry
Summary
The term competitiveness is defined as the ability to face competition and to be successful while facing international competition. Competitiveness is the ability to trade products that meet requirements for worldwide demand (such as price, quality, and quantity), and at the same time ensuring profits for the firm to thrive (Turi et al, 2014). The two disciplines for measuring competitiveness are first, neoclassical economics, which focuses on trade success and measures competitiveness with the real exchange rate, comparative advantage indices, and export or import indices. The second, strategic management places emphasis on the firm’s structure and strategy. In the latter, competitiveness is measured by various cost indicators, including productivity and efficiency. Particular attention should be given to productivity (and its efficiency component), which is generally agreed to be a part of competitiveness, not often cited as such in empirical studies (Aiginger et al, 2013)
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