Comparative Advantage Research Articles

Impact of Economic Integration on Trade: A Case Study of Pakistan

Purpose: This paper tends to examine the impact of economic integration on trade for Pakistan. It studied all trade agreements of Pakistan with partner and non-partner nations. We test whether the trade creation (TC) and trade diversion (TD) effects on trade flows are same across for the members and non-member countries. Also, we have measured comparative advantage and comparative disadvantage. Design/Methodology/Approach: We have used correctly specified gravity model on the data of imports and exports of Pakistan starting from 1988 till 2020. We have also used Revealed Comparative Advantage (RCA) index in this research work. Findings: The results revealed from the RCA index shows that Pakistan recorded comparative advantage in most of the commodity group and less comparative disadvantage. Similarly, Pakistan is enhancing trade with partner and non-partner nations in majority of the commodity groups respectively. Implications/Originality/Value: We may conclude that Pakistan is having trade creation with its partner countries and non-partner countries in most of the agreements.

Exploring the Design of Financial Instruments and Tax Incentives to Upscale Renewable Energy Generation in South Africa

South Africa is at the precipice of an existential energy crisis. Notably, the country’s endowment comprises vast stores of biomass, wind and solar energy potential that provide the country with a comparative advantage. Transiting from coal to renewable energy sources can stimulate the green economy and mitigate the country’s power shortages. Moreover, by advocating for the decarbonization of the energy sector, a significant contributor to greenhouse gas emissions, this research underscores the potential for advancing South Africa’s decarbonization objectives. This paper explores the design of financial instruments and tax incentives to promote the upscale of renewable energy development in South Africa. A qualitative appraisal is conducted on South Africa’s incentive regime. The study contributes to the scholarship on policy design to stimulate renewable energy generation.

Improving Human Pose Estimation with Integrated Dual Self-Attention Mechanism in High-Resolution Network

Human Pose Estimation (HPE) in computer vision (CV) has garnered significant attention due to its diverse applications. Deep convolutional neural networks (CNNs) may be solutions for addressing this challenge, but still face several critical issues. Many existing models employ serial convolution with pooling, leading to low-resolution outputs that are suboptimal for the precise localisation required in HPE. They often prioritise local feature learning, overlooking crucial contextual relationships between key-points. This work addresses these challenges by proposing a novel approach for enhancing HPE. Firstly, the paper evaluates the high-resolution network (HRNet) and its comparative advantages over other CNN architectures. Secondly, it introduces a dual self-attention (DSA) mechanism designed to enhance the model’s global awareness, thereby enriching feature maps with contextual information. Thirdly, it integrates the DSA mechanism into HRNet, crafting DSA-HRNet. The model performance was tested on the COCO Val 2017 validation dataset, showing improvements of 2.3% in mean average precision (mAP), 3% in AP at 50 (AP50), and 2.7% in AP at 75 (AP75). Finally, the work includes an investigation into the effectiveness of the DSA mechanism within the HRNet framework, through a series of experiments, showing this work offers a streamlined and effective solution for improving HPE.

Assessing Indonesian Nutmeg Commodity Trade Competitiveness and Developing Sustainable Strategies in the Global Market

Nutmeg encounters challenges in productivity, quality, climate change, Covid-19 disruptions, and stagflation, requiring efforts to enhance competitiveness and meet global market demands. This study aims to analyze Indonesian nutmeg trade performance, assess competitive advantage, and formulate essential strategies to increase its competitiveness. Using comprehensive mixed quantitative and qualitative analysis, methods include export-import market share analysis, CAGR, import dependency ratio, import-to-export ratio, RCA, RSCA, RTA, and SWOT/QSPM analysis. The data obtained from in-depth interviews with key stakeholders was used for formulating strategies enhancing nutmeg’s competitiveness. The findings underscore Indonesia's significant dominance in the global nutmeg market, with a considerable 61.6% market share but its export growth rate for nutmeg was less than the import annual growth. The competitiveness indicators demonstrated a robust comparative advantage of Indonesian nutmeg trade in the global market, especially for products categorized as “nutmeg, neither crushed nor ground” and “nutmeg, crushed or ground”. Indonesian also has comparative advantage among other exporter countries. Crucial strategies of internal and external perspectives, such as expanding markets, improving nutmeg quality and productivity through improving farmer capacity, technological adoption, and good agricultural practices are necessary to take into account Indonesia’s nutmeg competitiveness in global markets.

Tariff Negotiations Under Free Trade Agreements: The Case of Mongolia and the Republic of Korea

One of the principal reasons for the establishment of Free Trade Agreements (FTAs) between countries is to negotiate the reciprocal reduction and/or elimination of customs tariffs. According to Mongolian law, the Customs General Administration of Mongolia (CGAM) is responsible for determining the optimal rate and amounts of customs duties. As such, it plays a leading role in the negotiation of tariffs and the implementation of FTAs with partner countries. This paper examines the legal text of tariff negotiations and the modality of reducing tariffs, and determines specific goods of interest for tariff negotiations within the framework of the agreement between Mongolia and the Republic of Korea (ROK), based on analysis of the revealed comparative advantage (RCA) index. The results of the analysis show that, during the negotiation process, Mongolia should focus on textiles and apparel, as well as agricultural production, while the ROK should concentrate on automobiles, items of machinery and their parts, tobacco, cosmetics and noodles. This study should prove useful to Mongolian Customs experts and tariff negotiation team members, trade policy makers and domestic producers.

The Potential for High‑tech Exports from Selected EU Member States to China and the Related Opportunities Arising from the Belt and Road Initiative

The EU’s economic relations with China are characterised by a significant trade deficit. Enhancing EU exports of high-tech products, in particular, to China is the best way out of this imbalance. In doing so, EU countries can take advantage of the opportunities provided by the Belt and Road Initiative (BRI) that intends to improve connectivity between Europe and Asia. Objective: This study aims to identify the untapped potential for high-tech exports of selected EU countries in trade with China and to evaluate the opportunities arising from the BRI in utilising this potential. Research Design & Methods: To assess the overall high-tech export potential of selected EU countries to China, the export gap was calculated using the concept of revealed comparative advantages. Findings: Among the examined EU countries, Hungary and the Czech Republic were found to have the greatest high-tech export growth potential to China. The largest export gaps were recorded in electrical machinery and equipment. Implications & Recommendations: The findings of the study can be used by European businesses to adjust their export strategies. It can also be used by government institutions of the studied countries when designing their economic and trade policies, particularly vis-à-vis China and the BRI initiative, within the field of supporting infrastructure projects, as well as high-tech industries. Contribution & Value Added: The study contributes to the literature on the potential of EU export growth to China that has not been sufficiently explored yet. The novelty of the study is in identifying specific high-tech commodities with the highest potential for export to China.

Daya Saing Kacang Mete Indonesia Di Pasar Negara Tujuan Ekspor

Cashew nuts (Anacardium occidentale) are a leading plantation commodity with high economic value, essential for the development of the agricultural industry. Despite their significant potential as an export commodity, the export value of Indonesian cashew nuts has tended to decline during the period from 2013 to 2022. The aim of this study is to measure the competitiveness and development position of Indonesian cashew nuts from 2013 to 2022 in export destination countries. The data used in this research are secondary data in the form of time series data. The time series data includes annual data over 10 years (2013-2022) with export destination countries being Vietnam, India, Malaysia, Singapore, Sri Lanka, Japan, and China. The methods used in this study are the Revealed Comparative Advantage (RCA), Export Product Dynamics (EPD), and X-Model Potential Export Product methods. The results of the study show the Revealed Comparative Advantage (RCA) and Export Product Dynamics (EPD) values of Indonesian cashew nuts for the period 2013-2022 in the Vietnamese market with an RCA of 4.47 and a Lost Opportunity market position, India at 0.88 with a Retreat status, Singapore at 0.019 with a Falling Star status, Malaysia at 0.43 with a Lost Opportunity status, Sri Lanka at 21.55 with a Falling Star status, Japan at 7.36 with a Falling Star status, and China at 0.21 with a Rising Star market position. Meanwhile, the X-Model analysis shows that the market potential in Vietnam, Singapore, Sri Lanka, Japan, and Malaysia is classified as potential markets, the market potential in China is classified as an optimistic market, and the market potential in India is classified as a less potential market. As an export commodity, cashew nuts require proper handling and special attention. To ensure the quality, selling value, and strong competitiveness of cashew nuts, the government must continuously strive to enhance the selling value of cashew nuts through plantation development, garden and plant maintenance, and processing improvements.

Competitiveness of Indian Rice in the Global Market: A Comprehensive Revealed Comparative Advantage (RCA) and Nominal Protection Coefficient (NPC) Evaluation

Competitiveness of Indian Rice in the Global Market: A Comprehensive Revealed Comparative Advantage (RCA) and Nominal Protection Coefficient (NPC) Evaluation

Advancing Taiwan’s Semiconductor Industry: Capitalizing on its Comparative Advantage at the Global, Regional, and Firm Levels

Advancing Taiwan’s Semiconductor Industry: Capitalizing on its Comparative Advantage at the Global, Regional, and Firm Levels

A Simple Theory of Deep Trade Integration

Abstract Which countries should aim for regulatory cooperation, and to what extent should they pursue it? We develop an imperfectly competitive trade model that accounts for differences in technology and regulatory preferences regarding local consumption externalities across countries. Each country sets unique product standards, and firms incur costs when tailoring products to different markets. Trade occurs when the benefits of comparative advantages outweigh the desire for asymmetric regulations. Our findings indicate that regulatory cooperation, defined as the cooperative setting of standards, is most advantageous for countries with moderate differences in regulatory preferences. Shallow integration, however, falls short of achieving the optimal planner’s solution. Countries with strong comparative advantages in distinct externality-generating goods can pursue deeper regulatory cooperation through mutual regulatory concessions. Additionally, when regulatory preferences are highly dispersed, international cooperation tends to form regulatory blocs.

Determinants of China’s technological trade flows with Central Asian countries (CACs): a panel gravity approach

The purpose of this study is to examine the determinants of Chinese technological trade flows with Central Asian countries (CAC) with a revealed comparative advantage and the gravity model using two estimation techniques. The present study employs the Ordinary Least Square (OLS) and the Poisson pseudo-maximum likelihood (PPML) on the data set from 2003 to 2018 panel dataset. Results from the Gravity model demonstrates that low-tech, medium-tech, and high-tech trade flows boost economic development in China and Central Asian nations, adversely affecting all technology trade flows in geographical distance. The research indicated that exchange rates showed a negative indication in bilateral trade, medium-tech trade, and high-tech trade. In contrast, the low technology trade showed a positive flow between China and Central Asia. Furthermore, the results reveal that openness to trade and membership of the WTO show a positive indication. The trade openness policy on both sides thus has a major beneficial effect on trade volumes. It proposed increased liberalization of trade policy and greater involvement in global commerce. In addition, Central Asia and export industries should take additional initiatives to enhance and diversify high-tech exports. A competitive international market provides perfect equality in reciprocal trade interactions.

Mapping trade opportunities in Central and South Asia: an exploration through trade indices and metrics

Purpose This study aims to explore the possibilities for regional (intra and inter) trade between Central Asia and South Asia (CASA) by examining several frameworks that impact the economic integration of these regions. Design/methodology/approach The study uses five indices, specifically the export diversification index, export survival rates, export sophistication, revealed comparative advantage and intra-industry trade index in South and Central Asia, from 2005 to 2021. Findings The findings show a twofold increase in the potential trade value between the two regions compared to the actual level. The intra-regional trade in Central Asia accounts for less than 5% of trade with all countries, whereas the intra-regional trade in South Asia accounts for 1.5%, and the inter-regional trade accounts for between 0.2 and 4% of total trade to all destinations. The intensity of trade measurements shows that inter-regional trade flows are modest because they make up a relatively small percentage of the entire trade volume, which includes all destinations, ranging from 0.2 to 4 %. Research limitations/implications These findings have a significant impact on the successful implementation of trading-related measures, initiatives and institutional mechanisms for encouraging improved trade between and within both regions. Practical implications Export diversification initiatives aim to provide favourable outcomes for all parties involved, focusing on expanding the range of goods and services exchanged. CASA countries with higher diversification have shown more favourable outcomes than those relying on a restricted range of products. The authors expect policies promoting a broader array of exports to boost market shares, while maintaining a narrow focus may hinder new export prospects. In addition, regional value chains and policy initiatives promoting trade and investment could lead to increased value additions to exports, technological transfers and job creation. Social implications The study emphasises the significance of trade-related policies, programmes and institutional mechanisms in promoting trade between CASA. It emphasises the need for policies that support investment and trade, adopt new requirements of the Agreement on Trade Facilitation and promote diversity and latency. Originality/value Based on economic analysis, the study offers practical insights and strategies for businesses in the CASA regions. It also provides analytical tools for academics and decision makers, as well as policy and programme recommendations for government agencies, development partners, researchers and individuals interested in trade dynamics in these regions.

‘Economic constitutionalism in a turbulent world’: a critical review

Abstract The article analyses the book Economic Constitutionalism in a Turbulent World edited by Skordas, Halmai and Mardikian, criticising the assumptions of societal constitutionalism and ordoliberalism on which it is based. The book concurs with the view that the current crisis of global legal institutions cannot be tackled going back to Nation States. Such an assumption seems to be inspired by societal constitutionalism à la Teubner. In contrast to traditional constitutionalism, which hinges on the dichotomy between constituent and constituted power, societal constitutionalism assigns a central role to independent institutions, whose main function is to avoid any hegemony of one social sub-system over another, in particular of politics over economics. The limit of societal constitutionalism lays in its assumption that the economic sub-system has its own rationality that the political–constitutional system can only irritate, taking for granted that the paradigm of that economic rationality is the one established after 1989, thus implicitly adhering to the neo-ordoliberal vision and legitimising its absolute immanentism. Coming to the materiality of the issues underlying the book, most of the contributions conceive globalisation as an engine for the increase of global prosperity. This confidence rests in the Ricardian theory of comparative advantage. However, the latter is valid only under condition of restrictions on the movement of capital. Another assumption made by several contributions is the theory of the varieties of capitalism, according to which individual models of capitalism tend to stabilise around certain production regimes whose key actors are large firms and business associations. According to an alternative, neo-Kaleckian paradigm, there is no natural convergence of the actors of the economic system towards a mutually beneficial institutional set-up, and it is quite unlikely that, without the external intervention of politics, the system can return to equilibrium.

An Analysis of Bilateral Trade Relation between Turkey and Russia: Challenges and Opportunities of Russia-Ukraine War

Purpose: This study examines Turkey's bilateral trade intercourse with Russia in order to identify potentialities and problems for Turkey caused by the Russia-Ukraine War. Method/Design/Methodology/Approach: In the course of the study, with the help of descriptive statistics and calculations of trade indices such as trade intensity and trade complementarity indices, the current state of Russian-Turkish trade was examined. Afterwards, commodity sectors in which supply is expected to fall due to international companies’ suspension of businesses were identified. Next, the revealed comparative advantage index and its dynamic form were calculated to assess Turkey's potentialities to export commodities of the identified sectors to Russia and to highlight commodities groups where export policy should be improved. Thus, the study considers Russia and Turkey not as competitors, but as partners. Findings: It has been concluded that the countries have tight-connections and, to a certain extent, are dependent on one another. Both Russia and Turkey can benefit from further intensifying bilateral trade and improving partnership in other spheres as well. Originality: There is substantial literature comparing Russia and Turkey with other countries, trade blocks or with each other, mainly these two countries are counterposed from a competition perspective. This article, on the contrary, evaluates how cooperation and bilateral trade can improve the economic situation of both Russia and Turkey.

The tourism performance of spa destinations during crises in Central and Eastern Europe: An adjusted RCA index

Tourism is affected by natural and man-made disasters, such as the recent COVID-19 pandemic and the Russia-Ukraine war. The impacts of these on tourism have been analysed at national and regional levels, and at the level of individual destinations. However, the impacts on spa towns near the Ukrainian border are much less researched. The paper focuses on seven Hungarian spa destinations, one spa destination in Romania, and one in Slovakia to analyse the changes in their revealed comparative advantages between 2017 and 2023, covering the years of the COVID-19 pandemic and the Russian-Ukrainian war outbreak. The index of revealed comparative advantage was modified to make it applicable at town level in tourism, comparing destinations of various sizes and types. Findings show that the large, internationally focused destinations lost their comparative advantage during the pandemic, while smaller spa towns, orientated towards domestic tourism, benefited from the border lockdowns. The war outbreak led to considerable losses of comparative advantage in the spa destinations, while their countries and capital cities could increase their comparative advantages. Despite the crises, the competitiveness of spa resorts was better than the European Union average, though their countries remained less competitive than the EU.

Research on the optimization of investment structure of China's high-tech industries under the new development model of dual circulation

On May 14, 2021, at the Standing Committee of the Political Bureau of the CPC Central Committee, General Secretary Xi Jinping first proposed the concept of "dual circulation", emphasizing the construction of a new development pattern in which domestic and international dual circulations promote each other. Capital circulation is the primary link in opening up the circulation, and high-tech industries are the key areas in this new development pattern. In this context, it is of great significance and value to study the optimization of the investment structure of high-tech industries. This study takes the new dual circulation model as the starting point and conducts an in-depth analysis of high-tech industries from the perspective of investment structure optimization. By applying theories such as capital circulation, dynamic comparative advantage, and investment portfolio, the relationship between China's current economic development status and dual circulation is explained. At the same time, the development status of China's high-tech industries is compared with that of foreign high-tech industries, and the advantages, gaps, and problems between China's high-tech industries and developed countries are analyzed. The research plan explores the rationality of the investment structure of high-tech industries in the internal circulation, external circulation, and dual circulation from multiple perspectives such as industrial growth, investment efficiency, industrial upgrading, and global value chain. This will provide a theoretical basis and practical guidance for optimizing the investment structure of high-tech industries and help China achieve high-quality development under the new development pattern.

Effect of theme game-based learning on psychiatric violence risk assessment and response knowledge, skills, and self-confidence of nursing students: A randomized controlled trial

BackgroundTheme game-based learning has the potential to enrich student learning experiences, leading to improved learning outcomes. Yet, there remains a research gap regarding its application in addressing psychiatric violence, leaving uncertainties about the comparative advantages of theme game-based learning over situational simulation learning strategies. ObjectivesThe goal was to measure the effect of integrating theme game-based learning into psychiatric violence risk assessment and response training on nursing student psychiatric violence-related knowledge, skills, and self-confidence. DesignThis study was a randomized controlled, pre-test, and post-test trial. SettingThe study was conducted at a medical university in Guangzhou, Guangdong, China. ParticipantsThere were 103 third-year nursing undergraduates (intervention group = 51, control group = 52) in the study. MethodsAn Objective Structured Clinical Exam and the Workplace Violence Management Ability Assessment Questionnaire for Intern Nursing Students were used to assess student skills. The knowledge test and the Confidence in Coping with Patient Aggression Instrument were used to measure student knowledge and self-confidence level before and after intervention. ResultsNursing students in the theme game-based group demonstrated significantly superior skills and confidence in violence risk assessment and response compared with students in the situational simulation group (p < 0.001, p = 0.039, p = 0.006, respectively). However, there was no significant difference in knowledge of violence risk assessment and response between the two groups (p = 0.510). ConclusionTheme game-based learning in psychiatric violence risk assessment and response training appeared effective in enhancing the violence management abilities of nursing students.

The effectiveness of the logistics systems of the APEC countries

The Asia-Pacific Economic Cooperation Forum is an international union for collaboration in the field of regional trade, simplification and liberalization of investments, which serves the interaction of countries and their economic sectors with various stages of development. Transport and logistics systems are necessary to offset the shortcomings caused by issues with safety, usefulness and, most importantly, supply efficiency. The forum's management regularly works out strategies to solve these problems without noticeable losses for resource bases such as financial security and labor. Significant differences in the development of the association countries require an analysis of the effectiveness of logistics as a tool for the growth of the participating economies, ensuring conditions for constant progress and adaptation of the best foreign experience. The authors concluded that the degree of infrastructure quality affects the effectiveness of logistics services, confirmed the close relationship between the level of economic competitiveness of the country and the degree of its logistics efficiency, found out that the criteria for logistics efficiency are based on indicators of the pace of digitalization of transport activities. It is also established that Russia is one of the regions that can be characterized as catching up with the rest in terms of logistics efficiency, therefore, domestic transport industry specialists should study and, depending on the conditions, introduce technologies from the world's leading global players, creating a comparative advantage over other participants.

War shock and the economy

AbstractThe main features of war shock are substantially different from those of the preceding COVID-19 shock. The EU economy is showing important elements of resilience. The existing structural forces and adaptive capacity of the EU economy are clear indications that it is capable of transformation and avoiding recession.The dynamics of the war is also crucial in terms of economic impacts. There are still many uncertainties about the future course of the war and its ramifications. The fundamental question is whether the war is heading in the direction of escalation or de-escalation. Unless the war spreads beyond Ukraine and the conventional means of warfare, its global economic consequences may be limited after the initial shock. New adjustment processes in the field of green and digital transition can be set in motion in parallel with the suffering and turmoil of war shock. New market players could emerge in the energy markets.The prolonged war continues to challenge the Ukrainian economy, but it can remain viable with massive external support. The Russian economy could suffer serious erosion, with its comparative advantage being wasted.There is a real threat of deglobalisation and the emergence of a fragmented world economy, but the counteracting factors appear to be much stronger. However, the prolonged war continues to pose major and unpredictable threats to the countries affected directly and indirectly, to Europe and to the world economy.

Cross-National Comparison of Technology Innovation Capabilities in Automation and Robotics

In today’s dynamic and global economic environment, technological innovations are a key determinant of international competitiveness. In the field of automation and robotics, the development of modern technologies is of particular significance, influencing not only industrial progress but also social aspects. Automation and robotics play a crucial role in the concept of modern industry, contributing to the creation of more sustainable, flexible, and human-centric production systems. The article aims to conduct an in-depth analysis of the patent activity in automation and robotics in Europe. Patent documentation serves as a source of knowledge about the directions of research, inventive activities, and consequently, the innovative and competitive potential of the economy. The number of patents over time reflects the dynamics of a country’s technological development. The article discusses the use of patent databases to evaluate a country’s innovation in automation and robotics. The conducted analysis of data on European countries enabled the identification of trends based on the International Patent Classification and specialisation from a geographical perspective using revealed comparative technological advantage. The European countries were classified using cluster analysis, demonstrating the diversity, and identifying leaders in each group.