Comparative Advantage In Export Research Articles

Beyond the seams: evaluating competitiveness and comparative advantage in Vietnam’s apparel industry

PurposeThis study aims to examine the export competitiveness of Vietnam’s apparel sector by identifying the precise product categories that create its comparative advantage.Design/methodology/approachRevealed comparative advantage (RCA) and normalized revealed comparative advantage (NRCA) form the research methodology, and the RCA/NRCA values are calculated for the 2011–2020 period.FindingsIn total, 29 out of 34 product categories at four-digit levels and 65 out of 217 subcategories at six-digit levels elicited a consistent export comparative advantage throughout the 10-year study timeframe. The study also identified 13 subcategories at six-digit levels, which indicated 10 consecutive years of relative disadvantages.Research limitations/implicationsThe study’s findings have far-reaching implications for economic policy, development strategies and global economic integration. By providing a nuanced understanding of a country’s export strengths in the international apparel trade, this study offers valuable guidance for informed decision-making at various levels. The findings will serve as a significant source of information for policymakers and help them formulate novel policies aiming to diversify Vietnam’s apparel product offerings and export destinations. The results will also inform the government regarding the industry’s potential and attract necessary support, enabling it to grow further. This study reveals patterns in Vietnam’s apparel trade but does not provide insights into the underlying causes of comparative advantage.Originality/valueThe study provides an in-depth overview of Vietnam’s comparative advantages and disadvantages at two-, four- and six-digit harmonized system levels and helps understand Vietnam’s apparel export competitiveness.

Implementation of the export potential as a factor in sustainable development of the forest sector: regional aspect

At the present stage of economic development, international trade is becoming an arena for solving geopolitical problems. The implementation of the export potential in the context of the concept of sustainable development is based on a detailed analysis of trends in the export specialization of national economy priority sectors. The subject of the study is the regional forest sector. The provisions of the theory of comparative advantages served as a methodological basis. The article summarizes approaches to assessing the export potential, analyzes the commodity and geographical diversification of the Russian forest sector. The relevance of improving the analytical tools for assessing the sustainability of sectoral socio-economic systems is proved. The information basis of the study is official customs statistics. An analysis of the dynamics of exports made it possible to assess the impact of economic instruments, regulatory and managerial influences, and customspolicyon the development of the export potential of the forest sector. The index of Revealed comparative export advantage has a multiplicative character. It made it possible to obtain detailed information for the development and adjustment of strategies for territorial and sectoral development. The authorsidentified export specialization products of the forest sector of the Russian Federal Districts. An insufficient level of use of resource potential and a narrow specialization of most forested regions in products with low added value were stated.

Growth instability and Comparative Advantage in Export of indian rice

Growth instability and Comparative Advantage in Export of indian rice

Competitiveness Analysis of Pakistan’s Cotton Yarn Exports Relative to India and USA: A Demand System Application with Focuses on China’s Market

This study employed the revealed comparative advantage (RCA), revealed symmetric comparative advantage (RSCA) and Vollrath’s indices to measure Pakistan’s export competitiveness of cotton yarn in the world. Meanwhile, the country’s export competitiveness is evaluated using the comparative advantage by countries index in China, the world’s largest consumer of cotton yarn and Pakistan’s main export destination. Additionally, linear approximated almost ideal demand systems (LA/AIDS) is employed to anticipate the demand relations for exports of cotton yarn (Pakistan, India and the USA) in the Chinese market over the period 1991–2019. The value of RCA indices greater than one indicates that the country has comparative advantage in exports of cotton yarn in both the global and Chinese market. The findings also revealed that the nation’s comparative advantage position has decreased in global market while improved in the regional market of China. Furthermore, based on the approximation of restricted LA/AIDS model, the results affirmed that the exports of cotton yarn had high own-price sensitivity with negative signs, whereas cross-price sensitivity with positive signs. With regards to Pakistan’s exports, estimates of cross-prices indicate that China’s imports of yarn from Pakistan are substitutable for imports of yarn from India and the USA. In addition, the expenditure elasticity for India and US cotton yarn is greater than one, indicating that China viewed their exports of cotton yarn as quality good. On the other hand, the expenditure elasticity for Pakistan’s is less than one, but close enough to one, which reflects the cut-off point for exports of quality goods. Pakistan, therefore, needs to produce cotton yarn more efficiently by reducing costs and enhancing the reputation of quality to increase exports and market share.

Performance of growth, instability and comparative Advantage in Export of Fruits and Vegetables from india

Performance of growth, instability and comparative Advantage in Export of Fruits and Vegetables from india

Charting China’s Export Trajectories: Energy Factors and the Evolution of Competitive Advantage in Relation to the U.S.

Accompanied with energy price fluctuating frequently, energy-saving technology updating rapidly, energy factor plays an important role in China’s export trade to US via energy relative price and energy consumption technology differentiation. According to industry energy consumption density, the paper classifies industries into high and low energy consumption industry, combining Costinot et al. productivity method with forward linkages increase export value added, calculates Chinese high and low energy consumption industries export comparative advantage index to US during 2000-2014, as well as using Kernel density method to evaluate the transition of them, finds that comparative advantage of China’s high/low energy consumption industry to U.S. has a trend of weaken/strength which shows extreme phenomena. furtherly, utilizing Probit method to estimate the factors which affects the comparative advantage, the results turn out that the gap of energy consumption technology between two countries is the main reason which contributes to China’s comparative advantage of both high and low energy consumption industry to U.S. The energy relative price just has significant impact on high energy consumption industry, which will affect the achievement of China’s carbon emission reduction targets in ‘Responding to Climate Change: China’s Policies and Actions’.

Industrial impact analysis of foreign direct investment on economic development in Cambodia

PurposeCambodia's sustained and robust growth performance since the post-reform era in 1993 has been attributed to the boom in inward foreign direct investment (FDI) attracted to the country's labor-intensive industries, where it has comparative advantages. The purpose of this study is twofold. First, it aims to assess the consistency between Cambodia's revealed comparative advantage in exports and its sectoral inward FDI. Second, it examines the relationship between industry-level FDI and growth performance by accounting for heterogeneity across industries.Design/methodology/approachThe paper uses descriptive methods and an industry-level dataset provided by the Council for the Development of Cambodia to elucidate the issue. Additionally, it applies instrumental variable two-stage least squares (IV-2SLS) regression to investigate the impact of industry-specific FDI on economic growth from 1994 to 2017, which also aims to address the endogeneity issue.FindingsOn the one hand, our research finds that Cambodia's FDI has been attracted to sectors in which it has a comparative advantage during the aforementioned period. On the other hand, both FDI and the comparative advantage index significantly impact economic growth in Cambodia. The greater the flow of foreign investment into sectors with comparative advantage, the stronger the impetus for growth.Originality/valueThis study fills a gap in the literature and contributes to a better understanding of the relationship between FDI and economic growth in Cambodia. It is the first paper to investigate the heterogeneity of industry-specific FDI and provides practical recommendations for policymakers to effectively harness foreign investments and avoid malign FDI inflows.

Competitive Positioning of Mexican Pork in Japan

Historically, Mexico has distinguished itself by its strong participation in exports to the US market; however, the pork sector’s main destination is the Asian market, particularly Japan. Hence, this document aims to show the competitive position of Mexican pork in Japan during the period of 2000–2020, particularly by using Mexico, the United States, Canada, Denmark, and Chile as selected countries and considering these as the leading purveyors in the supply chain to the Japanese market. To achieve the proposed objective, a competitiveness analysis is developed through the Comparative Export Advantage methodology, strengthening it through the Constant Market Share (CMS). The results convey the growing competitiveness that Mexico is gaining in pork trade for the Japanese market, as well as globally. In addition, this research suggests that Mexican pork producers take the necessary steps toward increasing their level of competitiveness.

Growth, instability and comparative advantage in export of groundnut from India

Groundnut is the top exported commodity among the major oilseeds. India’s groundnut exports during 2021-22 stood at US$ 629.28 million. India’s major export destinations for groundnuts are Indonesia, Vietnam, Philippines, Malaysia, Thailand, Russia, Bangladesh, Nepal, Singapore, Iran, etc. An attempt was made through the present study to examine the growth, instability and comparative advantage in exports of groundnut from India. The results revealed that Groundnut exports to world registered highly significant growth rate of 16.09 % with high degree of instability of 36.11% per annum. Among the major destination highest growth were reported by Vietnam at the rate of 71.17 % followed by Thailand 55.18%, Russia 43.32%, Philippines 19.06%, Indonesia 13.51% etc. The instability in groundnut export was also shows high during the period. The study also calculated the comparative advantage among the major exporter of groundnut and revealed that India has highest comparative advantage among the major competitors. Because the value of revealed comparative advantage (RCA) and revealed symmetric comparative advantage (RSCA) was high in groundnut export by India among the major competitors. Highlights : India’s major export destinations for groundnuts are Indonesia, Vietnam, Philippines, Malaysia, Thailand, Russia, Bangladesh, Nepal, Singapore, Iran, etc., India has highest comparative advantage among the major competitors.

COMPARATIVE ADVANTAGES OF RCEP COUNTRIES IN FOREIGN TRADE AND EXPORT BASED ON STANDARD PRODUCT GROUPS

Bu çalışmada, Asya-Pasifik bölgesinde yeni bir iktisadi oluşum olarak Bölgesel Kapsamlı Ekonomik Ortaklık (RCEP) anlaşmasına taraf olan 15 ülkenin, standart ürün grupları bazında ihracattaki karşılaştırmalı üstünlüklerinin belirlenmesi amaçlanmıştır. Bunun için 2011-2020 arası yıllar seçilmiş ve Açıklanmış Karşılaştırmalı Üstünlükleri (RCA) ölçmek için de Balassa İndeksi ile hesaplamalar yapılmıştır. Ülkelerin ihraç ettiği ürünler, üretimdeki faktör yoğunluklarına göre (düşük, orta, yüksek teknoloji; emek, hammadde, sermaye yoğun; kolay taklit ve zor taklit, madenler ve metaller, mineral yakıtlar, tarımsal ürünler, tekstil, imalat) toplamda 13 standart ürün grubuna ayrılmış ve her grup için ayrı ayrı RCA katsayıları belirlenmiştir. Elde edilen bulgulara göre, RCEP ülkeleri (9 ülke) en fazla tarımsal ürün gruplarında uzmanlaşmıştır. Bu sektörü imalat sanayi (8 ülke) ve hammadde yoğun mallar (7 ülke) izlemiştir. Araştırma bazlı malların yer aldığı kolay taklit ve zor taklit gruplarda ise 7 ülke, yüksek teknoloji grubunda ise 6 ülke uzmanlaşmış ve ihracatta karşılaştırmalı üstünlük elde etmiştir. Araştırma bazlı bu gruplarda özellikle Çin, Vietnam, Güney Kore, Malezya, Tayland, Filipinler, Singapur ve Japonya’nın üstünlüğü söz konusudur.

Dynamics of Chinese Export Comparative Advantage: Analysis Based on RSCA Index

Based on RSCA index, using kernel density estimation, Markov chain transition probability matrix, and survival analysis method, this paper analyzes the dynamics of Chinese export comparative advantage from 2001 to 2020 and draws the following conclusions. Firstly, after 20 years of export trade development, although the comparative advantage of a few commodities of China has weakened and comparative disadvantage has increased, the comparative advantage of most commodities is improving, and the overall distribution of comparative advantage remained unchanged. Secondly, the stability of Chinese comparative advantage is higher than liquidity, and liquidity as a whole shows a good trend. In addition, the viability of Chinese commodities with comparative advantage has performed well in the past 20 years. Therefore, China should optimize export mode based on comparative advantage.

The EU-China trade in goods in the years 2004–2020 – is the EU exploiting its comparative advantage?

Purpose – The study aims to identify the EU’s and China’s comparative advantage in reciprocal trade and indicate the relations between the structure of this trade and such advantage. Research method – The study used Balassa’s Revealed Comparative Advantage index (RCA), which shows the competitive position in the exports of particular commodities compared to a selected partner. The calculations were based on 2004–2020 data, obtained from the UN Comtrade Database. Results – The results show that in the years under examination the EU-China bilateral trade followed a trend unfavourable for the EU (with an increasing negative balance). The most important commodities were machinery and equipment and they manifested a negative change for the EU. It meant that at the beginning of the analysed period (2004–2006) the EU had a comparative advantage in their exports, which was lost in 2007 and had not been regained by the end of the analysed years. Despite this change, machinery and equipment remained the dominant group of goods exported by the EU to China. Originality/value/implications/recommendations – The answer to the question posed in the title is that in bilateral trade China makes better use of its comparative advantage in exports, while the European Union has the imports structure that is more compatible with its comparative advantage. The EU countries shape the structure of their imports more effectively and, in the vast majority of cases, they purchase goods that they are not competitive with. On the other hand, they definitely underperform as suppliers to the Chinese market, selling goods (mainly machinery and equipment) in which they ceased to be competitive years ago.

Export Competitiveness of Dry Onion with Reference to India

"The purpose of the study is to examine the export competitiveness of onion with reference to India. In India, exports are allowed only after domestic requirements are met, due to which there arise year-to-year export fluctuations. Revealed Comparative Advantage Index (RCA) and Comparative Export Performance Index (CEP) are used to examine export competitiveness. The study reveals that India has comparative advantage in export of onion as compared to other major exporting nations followed by The Netherlands and Egypt. The performance index of India shows rise of Indian onion in world market, as the value of CEP index is decreasing for other exporting nations."

Determinants Comparative Advantage of Non-Oil Export 34 Provinces in Indonesia

In spite of the country’s export activities constantly increase every year, based on the latest report Indonesia still sits at number 28th in the world's top export countries, consider Indonesia as one of the most populated nations and its rich natural resources. There is so much research in the literature about this issue, but to the author’s knowledge, there is still a lack of studies that analyze the performance of non-oil export comparative advantage between provinces in Indonesia instead of between its commodities. The purpose of this research is (1st) to compare non-oil exports comparative advantage between 34 provinces in Indonesia and (2nd) to prove the effect of chosen factors which are a foreign direct investment, local direct investment, inflation, interest rate, exchange rate, population, labor, minimum wage, education, income disparity, regional GDP, government expenditure, and GDP of importing country toward provinces comparative advantage of non-oil export. This research using provinces panel data years 2010-2019. The method of this study is Revealed Comparative Advantage (RCA) index and Trade Balance Index (TBI) to unveil non-oil export comparative advantage between 34 provinces in Indonesia and panel data regression to estimate the impact of determinant factors. The result of comparative advantage index estimation shows that 24 provinces have a comparative advantage based on the RCA index approach and 32 provinces have a comparative advantage based on the TBI approach on non-oil export activities year 2010-2019. The result of panel data regression found that 9 out of 13 determinant variables had a significant effect on the RCA index namely foreign direct investment, local direct investment, exchange rate, population, labor, minimum wage, income disparity, regional GDP, and government expenditure. Then 6 out of 13 determinant variables had a significant effect on TBI which are a local direct investment, interest rate, exchange rate, education, income disparity, and regional GDP.

WTO and India’s Agricultural Trade Potential

India is an agrarian economy, which contributes about 15 percent of GDP and provides livelihood to more than 50 percent of the total population of the country. WTO has shown a momentous part in the expansion of the export market for developing and developed economy. Several measures are taken by WTO in order to reduce trade restrictions and trade barriers. In this study, we have been analyzed India’s agriculture trade, composition, direction and potential. The study is dependent on secondary data which is gathered from International Trade Centre, Department of Agriculture and Co-operation. Two-digits HS code products range from 01-24 were taken for the study. Few specific two and four-digit HS code products were taken to analyze the Revealed Comparative Advantage (RCA). Data were taken for the period 2001-2018. The export potential of India in international market was identified using reckoning of Balassa’s index of RCA. Study reveals that there has been a positive agricultural trade balance since 1990-91. In some agriculture commodities like coffee, oilseeds, tea and wheat India has a comparative advantage in export and India have both developed and developing countries such as UAE, USA, Saudi Arabia, Vietnam and Iran are exporting partner. In the last, study suggest that the government of India should focus more on producing agriculture products which has a country comparative advantage in trade like tea, oilseeds, coffee and wheat. Study suggests that EXIM bank should provide adequate credit to encourage agricultural export. The farming should be export-oriented to meet international standards.

Competitiveness and Determinants of Coffee Export in Ethiopia: An Analysis of Revealed Comparative Advantage and Autoregressive Distributed Lag Model

As an export commodity coffee industry contributes to the economies of both exporting and importing countries. The aim of study involves competitiveness and determinant of coffee export in Ethiopia through the period of 1990–2018 observations. To explain level of comparative advantage and competitiveness respectively Revealed Comparative Advantage and Syematric Revealed Comparative Advantage were employed. To capture determinans of coffee ARDL model with bound testing to co-integration approach was employed to investigate the long run association between Ethiopian total coffee export in bags (60kg each) with domestic coffee production,world coffe price,real exchange rate,FDI,world coffee production and price ratio. Eventhough Ethiopia has comparative advantage in export of coffee however, the share it in international market low in amount and not in lined with RCA. Bound testing to co-integration approach result confirmed the existence of a long-run relationship between total coffee exports of Ethiopian with its independent variables. The analysis pointed out that in the long run the extent of domestic coffee production, world price and real exchange rate positively and significantly affects total coffee export. However, FDI, price ration, world production of coffee have negative & significant effect. In short run Ethiopian total coffee export defined as positive significant function of domestic coffee production and real exchange rate positive but insignificant effect with Level of RCA and world price as well as negative function of FDI, price ration and world production of coffee. Evidence from Granger causality test confirms that unidirectional,bidirectional and independent Granger causality were observed. Coefficient Error Correction Model (ECM (-1)) was negative and significant with value 134.4 % of the adjustment would made each year and returned to its long-run equilibrium after 1.3 years. The policy implication calls for addressing issues of combined effect of the policy setting, institutions and market failures to avoid evil effect of the sector. Keywords: ARDL Coffee Competitiveness Determinant RCA DOI: 10.7176/JESD/12-5-05 Publication date: March 31 st 2021

Export Product Scope of Russian Firms and Proximity to Local Comparative Advantages

This paper explores the relationship between the structure of regional comparative advantages and the dynamics of the export product scope of Russian manufacturing enterprises. For this purpose, indices of revealed technological proximity of industries are calculated on the basis of data on types of economic activities and the export product scope of Russian enterprises. The methodology for calculating these indicators is based on the assumption that technologically closer types of activities are, to a certain degree, more often co-produced and co-exported within the boundaries of individual enterprises. This measure of technological proximity has several advantages over the traditionally used indicators. Estimates show that the constructed indices reflect different aspects of technological proximity of industries and can be considered as composite indicators. Technological proximity measures are used to calculate the index of product proximity to the structure of export comparative advantages of Russian regions. This index is statistically related to the probability of a product being included in the export product scope of a Russian exporter, to the probability of the product being excluded from the export product scope and, as a result, to the value and dynamics of exports of this product by the regional enterprises. These findings indicate that there is a relationship between the current structure of the regional comparative advantage and the direction in which the range of exports of Russian enterprises located in this region evolves. The results of the study can be used for designing economic policy measures aimed at diversification of production and export of the Russian regions, in particular on the basis of existing producers and exporters, as well as applied by the firms themselves to detect the most promising directions of activity expansion taking into account the production structure of the region which the given firm is located at.

Comparative advantage of groundnut export from India with other selected countries

The paper analyses the comparative advantage in the export of groundnut between some selected countries. Current global integration and changing export pattern has resulted in the reduction of trade barriers. Such increment in the international trade led the countries to get productive gains and enjoy the comparative advantage over other countries for which a measure of revealed comparative advantage (RCA Balassa index) is used. Groundnut exports share in India's total exports have shown a decreasing trend over the years and it was only 0.141 per cent in 2018. Although the Indian groundnut has wide scope for exports in the international market yet the groundnut farmers are suffering from many backlogs which hinder the actual growth of groundnut exports. Groundnut farmers of India have confronted with various challenges to survive in the international market. India has an increasing growth in terms of comparative advantage in groundnut export. It has maintained stability over the years which indicates that India's groundnut export has significant potential for growth. Country has the highest comparative advantage 13.69 in the exports of groundnut in comparison with other selected countries as it holds the potential of being the world's leading groundnut producer with the ongoing research to develop technologies for rainfed groundnut farming.

The importance of the BRICS group in the specialization of production and export competitiveness of North-East Brazil

This article seeks to identify and analyse the pattern of specialization in the export structure of North-East Brazil in 2003–2014, following the expansion of international trade with the BRICS countries (Brazil, Russian Federation, India, China and South Africa). The Aliceweb and Trademap databases are used to calculate the relevant indicators, namely the specialization coefficient, revealed comparative advantage, contribution to the trade balance, and degree of intraindustry trade. Trade with the BRICS countries led to exports being reorganized by specialization groups, thereby confirming a historical trend of comparative advantage in exports in the following product categories: food, tobacco and beverages; paper and pulp; chemicals; plastics and rubber; textiles; footwear and leather. Trade with the BRICS countries did not promote diversification or increase the technology content of the North-East’s export structure.

Eczacılık Ürünleri İhracat Performanslarının Belirlenen Endekslerle Ölçülmesi: Türkiye - Brezilya Örneği (Measurement of Export Performance of Pharmaceutical Products With Determined Indices: Turkey- Brazil Example)

Purpose – The pupose of this study is to measure export performances of Turkey and Brazil via the designated indexes of pharmaceutical products and compare the obtained results. Design/methodology/approach – The Comparative Export Advantage Index and the Comparative Export Performance Indices were measured between 2008 and 2017 using the export rates of the two countries and the pharmaceutical sector in the world. Findings – The high cost structure of the pharmaceutical industry, private labor employment, technological infrastructure is important, R&D activities take a long time and show that concern for human health is of high importance of the industry. Discussion – In the pharmaceutical sector of Turkey and Brazil, which is the country of Latin America in European countries, comparative advantages/disadvantages of the competitive strengths were measured and tried to determine the situation. As a result, it was determined that the competitiveness of the two countries is disadvantageous and Brazil has advantages to Turkey.