Comparative Advantage Analysis Research Articles

Comparative and Competitive Advantages of Palm Oil in International Markets

This research aims to (1) Analyze the competitiveness of Indonesian cocoa butter exports in international markets based on comparative advantages. (2) Analyzing the competitiveness of Indonesian cocoa butter exports in the international market based on competitive advantages. The competitiveness of palm oil is analyzed in two ways: comparative advantage analysis and competitive advantage analysis. The approaches used in comparative advantage analysis are RCA, RSCA, and Product Mapping (RSCA and TBI). Meanwhile, the competitive advantage analysis uses the ECI approach. The competitiveness of Indonesian palm oil exports has a comparative advantage (RCA 54.15); based on Product Mapping analysis, Indonesian palm oil is in Group C, which means it has export specialization and has a comparative advantage. The ompetitiveness of Indonesian palm oil exports shows a competitive advantage or an upward trend; the value shows more than one (ECI 1.01).

Current state, internal reserves and ways to increase the competitiveness of livestock farming in the Republic of Kazakhstan

Relevance - the livestock industry occupies a strategic position in the economy of all countries because it supplies the population with affordable food products, thereby ensuring food security of states and regions. Purpose –livestock products market in Kazakhstan and its impact on the state of agro-industrial production are considered; monitoring of agricultural producers by the number of farm animals; analysis of volumes and comparative advantages of livestock products for various categories of farms; identifying the main problems and prospects for diversification industries. When conducting the research, methods of analysis and synthesis, graphical, economicstatistical, and systems approaches were used. The main sources of information when conducting the study include data from the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan for 2019-2023, and the works of scientists on the development of livestock segment. Results - the authors note that the greatest increase in the number of cattle is observed in personal subsidiary plots and peasant (private) farms, which are the main producers and suppliers of livestock products, providing the food market of the republic. The main problems that make it difficult to increase the volume of livestock products are identified: the predominance of small-scale farms; low level of breeding; undeveloped food supply; poor labor motivation among agricultural workers. Conclusions – the expansion of market niche of livestock products as one of the priority areas of agricultural sector of economy depends on the further expansion of the network of production cooperatives – the most acceptable and effective form of farming in rural areas; increasing productivity of farm animals; improvement of food supply; attracting domestic and foreign investments; in the future, the use of information systems for storing data on feed consumption and payment, the physiological state of animals, economic activities and development of livestock development plans.

Comparative advantage of Indonesian mushroom commodities in the green technology era

Mushroom is a commodity in the agricultural sector that has the potential to be developed in global trade competition. As part of the ASEAN regional cooperation institution, Indonesia can contribute to achieving excellence in mushroom commodities. Developing mushroom cultivation to support green technology innovation also helps achieve food security for future generations. This research aims to analyze and overview the comparative advantages of ASEAN with China related to mushroom commodities in 2018-2022. This research uses descriptive analysis methods and RCA-Revealed Comparative Advantage analysis in calculating the RCA of this mushroom, using HS codes 0709, 0711, and 0712. HS code 0709 represents mushroom commodities based on the sub “Fresh or chilled mushrooms of the genus “Agaricus” and Fresh or chilled edible mushrooms and truffles. The results show that China has a comparative advantage over ASEAN regarding mushroom commodities in 2018-2022. China outperforms in 3 mushroom commodity sectors in HS Codes 071159, 071151, and 071239. In comparison, ASEAN regional institutions have a low and weak level of comparative advantage in each mushroom commodity code. These results indicate that countries that are members of ASEAN pay less attention to mushroom commodities. Therefore, strategic efforts are needed to develop mushroom commodities supporting green technology innovation by prioritizing humidity control to achieve national food security goals.

Competitiveness and Export Position of Indonesian Whole Nuts Seeds in the International Market for the Period 2011-2022

Indonesia is the largest nutmeg exporter in the world. Indonesian nutmeg tends to experience an increase in export volume every year. However, the development of nutmeg exports is still experiencing fluctuations during the 2011–2022 period. This research aims to analyse the export competitiveness of Indonesian whole nutmeg seeds in the international market and the competitive position of whole nutmeg seeds in export destination countries in the period 2011–2022. This research uses secondary data, namely in the form of time series data for 12 years, namely the years 2011–2022. The data were analysed using revealed comparative advantage (RCA) and dynamic revealed comparative advantage (DRCA) analyses. Research results using Revealed Comparative Advantage (RCA) show that Indonesian whole nutmeg seeds are competitive in the international market. Indonesian nutmeg in ten export destination countries is also competitive, with the highest competitiveness of whole nutmeg in Germany, Italy, and the Netherlands. Based on the Dynamic Revealed Comparative Advantage (DRCA) analysis, the results show that product competitiveness growth is always positive in Japan, leading to Japan's competitive position becoming a rising star in the fourth period (2020–2022).

Daya Saing Ekspor Ikan Tuna Indonesia di Pasar Global

Revealed Comparative Advantage (RCA) analysis is a key tool in assessing a country's competitiveness compared to others. This study uses RCA to measure Indonesia's comparative advantage in the global tuna market. The calculated RCA values show Indonesia's superiority in tuna production and exports, especially with a focus on fresh or chilled yellowfin tuna (Thunnus albacares) with HS Code 030232. The RCA values for Indonesia, Panama, the Philippines and the Netherlands are 200, 150, 50, 350, and 400, respectively. These results confirm that Indonesia has a comparative advantage in the international tuna market, which is supported by abundant natural resources, a large fishing workforce, and a history of successful tuna exports. Despite this, challenges remain, including overfishing, the impacts of climate change, and illegal, unreported, and unregulated (IUU) fishing. The decline in tuna production in Indonesia demands better fisheries management and international cooperation to address unsustainable practices. The Indonesian government's commitment to conservation is visible in the Tuna, Skipjack and Tuna Fisheries Management Plan. Overall, Indonesia's vibrant tuna export industry, supported by extensive marine resources, a large international market and robust infrastructure, shows significant potential. The government's commitment, combined with ongoing efforts to increase competitiveness through increased productivity, product quality, diversification and global promotion, positions Indonesia to strengthen its role as a major player in the global tuna export market.

Who is the next China? Comparative advantage analysis from top ten apparel exporting nations

Purpose This study aims to measure the competitiveness of top apparel exporting nations competing with China in different apparel product categories across the global environment. Design/methodology/approach Compound annual growth rate, trade competitiveness, market share percentages, revealed comparative advantage and its variant normalized revealed comparative advantage using two-, four- and six-digit harmonized system codes for the period of 2016–2021 were used to understand the comparative advantage of competing apparel exporting nations. Findings The findings revealed that China still holds a more decisive comparative advantage than its competitors over the majority of the product categories within the knitted or not knitted apparel and clothing accessories. The other competing nations hold better export competitiveness over China in specific categories. However, that is not sufficient to be the “Next China.” Research limitations/implications The study has important implications for different stakeholders of the global apparel industry, such as governments, industry officials, policymakers, investors, researchers and students. The study’s limitations arise from using product categories as competitiveness indicators, notably relying on a macro level approach for measurement while the micro level perspective is not analyzed, which constitutes a significant limitation of the study. Originality/value This research thoroughly analyzes the competitive position of the top ten apparel-exporting countries in the global market.

Research on India-China agriculture trade dynamics: A comparative advantage analysis.

This paper presents a comprehensive analysis of the agriculture trade dynamic between India and China from 2002-2021. It employed the Revealed Comparative Advantage (RCA) and Revealed Symmetric Comparative Advantage (RSCA) indices and various statistical analyses to assess the trade performance and provide an enhanced comprehension of the specialization pattern. The study has selected 45 agricultural commodities, categorized into seven sections according to the HS Nomenclature 2017. The findings revealed that India boasts a more diversified export portfolio compared to China, with a more significant number of agriculture chapters demonstrating a comparative advantage. Conversely, China's export basket is more concentrated, featuring fewer chapters with a comparative advantage but higher values of RCA and RSCA. The paper also identified the prospective areas for agriculture-trade cooperation and collaboration between the two countries and put forward recommendations. This research aims to offer valuable insights for policymakers, researchers, and traders to enhance bilateral ties and mutual benefits in the agriculture sector.

ANALYSIS OF THE POTENTIAL COMPETITIVENESS OF NATURAL RUBBER EXPORTS IN THE GLOBAL MARKET (COMPARATIVE STUDY IN ITRC COUNTRIES: INDONESIA, THAILAND, AND MALAYSIA)

The objectives of this study are 1) to find out how the potential competitiveness of Indonesian, Thailand, and Malaysian natural rubber exports in the global market compares in terms of their comparative advantages 2) to find out how the comparison of the effect of the exchange rate, production, and the international price of natural rabber on the competitiveness of Indonesian, Thailand, and Malaysian natural rubber export in the global market. The method used in this study is a quantitative method with Revealed Comparative Advantage (RCA) and Revealed Symmetric Comparative Advantage (RSCA) analysis tools to analyze the export competitiveness of Indonesian, Thailand, and Malaysian natural rubber based on their comparative advantage, and multiple linear regression with the ordinary least square (OLS) method. 1) The results of this study indicate that for Indonesia the average competitiveness of natural rubber exports is 0.9330, while Thailand is 0.9338, and Malaysia is 0.7763. 2) The results of multiple linear regression show that the exchange rate and production variables have no significant effect on the competitiveness of Indonesian and Thailand natural rubber exports, while the international price variable for natural rubber has a significant effect on the competitiveness of Indonesian and Thailand natural rubber exports. And for Malaysia, it shows that the three variables, the exchange rate, production, and international prices of natural rubber have a significant effect on the competitivenss of Malaysia’s natural rubber exports.
 
 Keywords: ITRC country’s natural rubber export competitiveness, Exchange Rates, Production, and International Price of Natural Rubber.

Quantitative Descriptive Analysis of Comparative Advantages of Fisheries Commodities in Baubau City, Southeast Sulawesi, Indonesia

Aims: This research aims to analyze of comparative and competitive advantages and determine center location of fisheries commodities in Baubau City, Southeast Sulawesi, Indonesia.
 Study Design: The research was conducted by survey methods.
 Place and Duration of Study: Research was conducted in Baubau City, Southeast Sulawesi, three months, starting from July 2023 to September 2023.
 Methodology: The data encompasses the commodities' results over a span of seven years (2016 until 2022). Analysis methods used description analysis to determine comparative and competitive advantages of fisheries commodities. Tools analysis used the Location Quotient methods (LQ).
 Results: Based on the research conducted, it was found that out of the 27 fish species, the leading fisheries commodity in Baubau City, Southeast Sulawesi, includes Crumenophthalmus sp., Rastrelliger sp., Decapterus sp., Katsuwonus sp., Thunnus sp., Elagatis sp., Coryphaena sp., with the highest catch being Katsuwonus sp., totaling 33,657 tons over the past seven years (2016-2022) and representing the largest catch in Southeast Sulawesi. The results indicate that Skipjack Tuna is the commodity which has comparative and competitive advantages i.e. 37.32 (LQ > 1). Skipjack Tuna production, average 5,816.15 tons per year. Batupoaro District is the center location of Skipjack Tuna in Baubau City. Production of Skipjack Tuna amount 1,375.50 tons per year or 24% from total production in Baubau City. 
 Conclusion: Skipjack Tuna is the commodity which has comparative and competitive advantages in Baubau City. Batupoaro District is the center location of Skipjack Tuna in Baubau City.

Export Competitiveness of Indonesian Copra in International Trade 2017-2021

Indonesia is the main coconut-producing country in the world. One of the coconut derivative export products is copra. In 2019, the volume of Indonesian copra exports was 154 thousand tonnes, then fell to 107 thousand tonnes in 2020 and decreased to 39 thousand tonnes in 2021. This research will identify the competitiveness and specialization index of the Indonesian copra trade. The data used in this research is secondary data in the form of time series (cross-section) from 2017 to 2021. The data was analyzed using Revealed Comparative Advantage (RCA) analysis and the Trade Specialization Index (TSI). The data processing was carried out using the Microsoft Excel 2019 program. The research results explain that the RCA value of the Indonesian Copra Commodity in 2017-2021 is between 28.16 and 48.80, with an average RCA of 41.55. RCA >1 means that Indonesian copra commodities have high competitiveness in the international market. And higher than the RCA countries of Malaysia, India and Guatemala. Indonesia's TSI during the 2017-2021 period was 0.97, and This indicates that the Indonesian copra commodity has strong competitiveness as an exporter of copra commodities.

Analysis of Indonesia's Soybean Competitiveness

The current national soybean demand is reaching 4 million tons, but domestic production only meets 1/16 of that demand. The increasing domestic soybean demand, coupled with a decreasing national soybean production each year, has led to Indonesia's dependence on imports. There are numerous issues with the soybean commodity that have resulted in the weak competitiveness of Indonesian soybeans in the international market. However, several soybean production centers show that soybean cultivation is still viable for development. This research aims to analyze the competitiveness level of Indonesian soybean commodities. Revealed Comparative Advantage (RCA) analysis is utilized to assess the competitiveness level of Indonesian soybeans in the international market. The research findings that The RCA value is less than 1, indicating that Indonesian soybeans lack competitiveness or have weak competitiveness.

Comparative advantages analysis of oxidative torrefaction for solid biofuel production and property upgrading

This study performs the comparative advantage analysis of oxidative torrefaction of corn stalks to investigate the advantages of oxidative torrefaction for biochar fuel property upgrading. The obtained results indicate that oxidative torrefaction is more efficient in realizing mass loss and energy density improvement, as well as elemental carbon accumulation and surface functional groups removal, and thus leads to a better fuel property. The maximum values of relative mass loss, higher heating value, enhancement factor, and energy yield are 3.00, 1.10, 1.03, and 0.87, respectively. The relative elemental carbon, hydrogen, and oxygen content ranges are 1.30–3.10, 1.50–3.30, and 2.00–6.80, respectively. In addition, an excellent linear distribution is obtained between the comprehensive pyrolysis index and torrefaction severity index, with elemental carbon and oxygen component variation stemming from pyrolysis performance correlating to the elemental component and valance.

Determining Competitiveness of Pakistan Sports Goods Industry Using Revealed Comparative Analysis

This study calculates and explains the comparative advantage of Pakistan's sports goods industries in the international market. Static and dynamic comparative advantage analysis differentiates this work from the previous ones for the sports goods industry. The top ten Pakistani sports items have been chosen for this purpose. The product positioning of these products in the international market has also been determined. The results of this study indicate that China and India have a strong revealed comparative advantage in festivals, carnivals, or other forms of entertainment goods and Balls, respectively. In contrast, the United States, Thailand, and Indonesia have a significant revealed comparative advantage in Golf balls. China acquires a competitive position in the global market in 9 of Pakistan's top 10 sports items for 2019. According to dynamic revealed comparative advantage, Pakistan has the most significant revealed comparative advantage for inflatable balls from 2005 to 2019 in the international market, implying that Pakistan has a competitive edge in exporting this product. The Government of Pakistan needs to prioritize and facilitate the sports goods industry for increasing exports of this industry.

Analysis of Comparative Advantages and Shifts Share in Economic Sectors: Empirical Study in Wajo Regency, Indonesia

The aims of this research are: (1) to analyze the growth classification of economic sectors in the Wajo Regency 2011-2015; (2) to analyze the basic sector of the economy in the Wajo Regency 2011-2015; (3) to analyze the share and shifts in the economy sector Wajo Regency 2011-2015. This study uses secondary data obtained from BPS-Statistics South Sulawesi Province, BPS-Statistics Wajo, and the Department of Planning and Regional Development Wajo. Data were analyzed using Klassen Typology, Location Quotient, and Shift-Share analysis. The results of this research show that: (1) Sector classified as a developed sectors in the Wajo Regency is The of Agriculture, Forestry and Fisheries, and sector mining and excavation. (2) sectors is a basic sector of Wajo Regency is the sector of Agriculture, Forestry and Fisheries, sector mining and excavation, sector Procurement Electricity and Gas, the sector of Wholesale and Retail, Car Repair, and Motorcycles, (3) The structure of the Wajo Regency 2011-2015 start forward to slide in the economic sector from primer sector to secondary sector (4). The sectors that have competitive advantages (D) in Wajo are sectors of Agriculture, Forestry and Fisheries, sector Procurement Electricity and Gas, construction sector, sectors Transportation and Warehousing, sector Provision of Accommodation and Food Drink, the Financial Services sector and the insurance sector, Real Estate sector, Service sector Corporate sector Public Administration, Defense, and Social Security Mandatory, and sector service of education.

Trade liberalisation and export competitiveness of Indian manufacturing industries: some explanations

India embraced open trade policy from 1990s onwards, following the Economic Reforms of 1991, by reducing import tariffs and opening up Indian markets to competition. The expectation from this reform was that the Indian industry would be more competitive. By mid 2000s, India was not only an open economy, however, it was on its way to effect across-the-board reductions/elimination of tariffs and other non-tariff barriers by formalising FTAs and CEPAs several prominent trade partners. Although, trade to GDP ratio has increased from 13% in 1990 to 27% in 2019-20, import dependence of India, especially on China has increased manifold. The paper has delved into the trade policy evolution that led India to open up and increase its presence in the global trade market. However, an industry level Revealed Comparative Advantage (RCA) analysis reveals that the loss in export competitiveness in six industries at NIC 4-digit level, since 2000-01 to 2017-18, retarded the growth potential in exports that India could have claimed with a phased opening up of trade. These industries were mainly in the textiles and apparel sector and gems and jewellery sector. The industry level factors such as lower productivity growth, higher unit labour costs and presence of low levels of technology are prominent factors that explain the export performance of India that we observe.

Analysis of Competitiveness and Product Export Determinants in the East Java Manufacturing Industry

This study aims to determine the export competitiveness of East Java manufactured products based on the harmonized system (HS) through Revealed Comparative Trade Advantage (RTA) analysis to cluster superior manufacturing products in the districts/cities with the largest share of the manufacturing industry using Location Quotient (LQ), as well as analyzing the determinants of East Java exports based on the destination country of trading partners in the short and long term using the Vector Error Correction Model (VECM). The results show that the RTA value of East Java is still competitive in terms of exports of manufactured commodities. In addition, the LQ analysis also concludes that there are industrial agglomerations, namely industries that are close to each other and form industrial areas, such as in Surabaya-Gresik-Sidoarjo-Malang. On the other hand, the short-term and long-term modeling shows that the GDP per capita of partner countries plays a crucial role in the sustainability of East Java’s exports. This result lead to several policy recommendations, such as preventing the demand shock from partner trading country especially non-ASEAN countries, either price and exchange rate volatility or political events as well as strengthening strategy to focus commodity production for export-oriented products.

Analisis Daya Saing Kopi Indonesia dalam Menghadapi Perdagangan Kopi Dunia

Indonesia is the fourth largest coffee producer in the world after Brazil, Vietnam and Colombia. However, in the period 2018-2021 the value of Indonesian coffee exports decreased in line with the low volume of Indonesian coffee exports that year when compared to the previous period so that Indonesia's position fell from fourth to fifth as a coffee exporter in the world. Therefore, it is necessary to conduct research that aims to analyze the competitiveness of Indonesian coffee in the period 2011-2021 using the Revealed Comparative Advantage (RCA) analysis, Dynamic Revealed Comparative Advantage (DRCA), and Trade Specialization Index (ISP). The results showed that there was a decline in the competitiveness of Indonesian coffee in the international market, even though Indonesia is currently at the maturity stage. One of the efforts to respond to this problem is to strengthen the development of Indonesian coffee agribusiness which is integrated and collaborates with each other between its subsystems by paying special attention to coffee farmers.

Daya Saing Biji Pala Indonesia di Pasar Internasional

Indonesia is a nutmeg exporter with the highest export value during 2012‒2020. However, the growth of Indonesia's export value is lower than its competitors. Therefore, to maintain its position as a major exporter, it is important to know its competitiveness. This study aims to explain the competitiveness of Indonesian nutmeg in the world and in ten export destinations. In addition, this study was conducted to analyze the competitive position in the export destination market. The study uses secondary data from UN Comtrade. The data are Indonesian export values of whole and powdered nutmeg in the international market and in ten destination countries during 2012‒2020. The data were processed using revealed comparative advantage (RCA) and dynamic revealed comparative advantage (DRCA) analysis. The results showed that Indonesian whole and powdered nutmeg were competitive in the world market. However, the competitiveness is lower than nutmeg competitiveness of Sri Lanka. Indonesian nutmegs in ten destination markets are also competitive, with the highest competitiveness being in Italy and Germany. Nevertheless, the always positive growth of competitiveness from two products occurred in Japan, thus make Japan's competitive position in rising star during the period of 2018‒2020. Increasing the competitiveness of nutmeg can be done by increasing the export value of the product through regulations by the government regarding post-harvest handling so that there is only a small amount of aflatoxin. In addition, the government can more focus on increasing exports to Japan.
 
 Keywords: competitiveness, dynamic revealed comparative advantage, revealed comparative advantage, nutmeg

PERENCANAAN DAN KELAYAKAN INVESTASI PERKEBUNAN DURIAN DI KECAMATAN LEMBANG, KABUPATEN PINRANG

The goals of this research are as follows: 1. to assess the potential for durian commodity development in Lembang District, Pinrang Regency based on the base commodity 2. to conduct a comparative advantage analysis of the durian commodity in Lembang District, Pinrang Regency 3. to assess the financial and non-financial feasibility of establishing durian plantations in Lembang District, Pinrang Regency. This study was carried out in Lembang District, Pinrang Regency. This study lasted approximately four months, from January to April 2020. The data was analyzed using the investment feasibility method after primary data collection from informants. According to the findings of this study, the yield (LQ) of plant commodities that are the base commodities in Lembang District, Pinrang Regency are durian, orange, and banana. T Based on the results (RDC) of the leading plant commodities in Lembang District, Pinrang Regency, namely durian and banana plants. The financial feasibility of investing in durian plantation planning demonstrates that the investment in planning and the feasibility of durian plantation investment are both feasible. This is demonstrated by the investment criteria's Net Present Value (NPV) of Rp 524,992,410,848, -, the resulting Internal Rate of Return (IRR) of 42.64 percent, Net B/C of 4,65, and Payback Period of 8 years 5 months.

Sustainable Development Research of Green Smart Park in High-End Manufacturing Based on Internet of Things.

During the transition from industrial production to intelligent, there are still a large number of manufacturing industries in the traditional production mode. The problems of slow information transmission, difficult integrated production management, and complicated process parameter control have led to disconnect decision-making from actual production. In addition, the current manufacturing industry is more of a traditional management method, and the upgrade and iteration speed are slow, and it is not combined with the technology of the Internet of Things. Therefore, the purpose of this article is to use the Internet of Things monitoring technology to explore the improvement of high-end manufacturing and analyze the problems and solutions in the process of consistency of ecological environment and economic effects. This article will use the research methods of specific problems and specific analysis to compare the data and draw conclusions. This article will discuss the technical mechanism of the Internet of Things monitoring and introduce the collection and data of production status data of each station equipment in the production workshop during the production process: improving the current production model, learning foreign experience at the same time, quickly carrying out load curve and data center data accumulation on the service capabilities of the park, verifying multiple operating models, and simultaneously exploring new management models. Based on comparative advantage analysis, the study draws similarities and differences in the development of high-end manufacturing industries at home and abroad, learns advanced experience, proposes improved methods and paths, combines new environmental protection paths, and finally proposes energy operation in the park. Build a green and intelligent park to provide a theoretical reference for sustainable development. The research results show that computer monitoring technology and methods have effectively improved the production environment of high-end manufacturing, combined with the development status of the existing ecological and intelligent composite production system; the infrastructure construction of industrial parks in the new era, IT support, services, manpower resources, and industries has developed rapidly.