Comparative Advantage In Production Research Articles

Exportation and Big Data: An Analysis of Kansas Trade Trends 1995 – 2025

The exportation of goods and services plays an essential part in the growth of an economy, exposing producers of goods and services to an external market(s) that fosters collaboration within and outside nations of the world. Some states rely more on exporting goods than others in the United States, and different products are exported at higher rates between states. The specialization of exports can benefit a state since those products help its economy succeed. Understanding what exported goods are essential to the economy allows people to decide what should be produced and exported. Kansas has its own set of goods that it exports across the world. By observing their exporting habits, policymakers in Kansas will know where they stand and how they can move forward. This information can help all stakeholders in Kansas improve the economy for everyone in the state. The study focuses on the 2000 – 2025 period, and its primary contribution is to identify what products (goods and services) the State of Kansas has a comparative advantage in production and what nation of the world Kansas has both a comparative and absolute advantage in exportation over the other 49 States and the District of Columbia.

Education and the evolution of comparative advantage

We analyze the evolution of comparative advantage in 1,240 products from 49 low- and middle-income countries between 1995 and 2015. We show that countries with high education levels were more successful in developing comparative advantage in products unrelated to those they already exported. This effect is strongest for non-core products. In contrast, these countries did not develop comparative advantage in products that were intrinsically complex or education-intensive. These results are robust to corrections for specification errors, for institutional, infrastructure, and FDI-related factors, for regional specialization patterns, for key shifts in global trade rules, and for each economy's degree of industrial dynamism prior to 1995. These findings suggest that the key role of education when seeking to develop new industries is to help a country learn to manage unfamiliar challenges, and so overcome path dependence.

The Impact of Food Production Comparative Advantage on Green Total Factor Productivity: The Moderating Role of Environmental Regulation

Guaranteeing an increase in ecologically sustainable food production is a sufficient prerequisite for the long-term development of national food security. This study’s primary goal is to determine strategies for improving the nation’s green total factor productivity (GTFP) of food. We begin by measuring the GTFP of food with the Global Malmquist–Luenberger (GML) index. Second, the food production comparative advantage is determined using the entropy-weighted Technique for Order Preference by Similarity to the Ideal Solution (TOPSIS) method. The food production comparative advantage is then used as a leaping point to experimentally study the pathway to enhancing the GTFP of food. The 510 sample statistics for this study come from 30 provinces in China from 2003 to 2019. The study’s findings indicate that (i.) China’s “food production comparative advantage” and “GTFP of Food” have shown an ascending pattern. China’s Northeast and Huang–Huai–Hai regions have the greatest comparative advantages in food production. The regions with the highest food GTFP are the Northeast and Middle and Lower reaches of the Yangtze River. (ii.) Food production comparative advantage can effectively contribute to green total factor productivity, but there is a time lag. (iii.) As food production’s comparative advantage rises, its contribution to GTFP becomes more apparent. (iv.) Environmental regulation moderates the influence of food production comparative advantage on GTFP. In addition, environmental regulations exert a greater moderating effect in regions with lower green total factor production rates than in regions with higher green total factor production rates. (v.) The food production comparative advantage improves the GTFP through both structural and technological effects. This study not only expands the research horizon of GTFP of food but also offers planning recommendations for technological advancement and structural adjustment in food production.

Immigration and work schedules: Theory and evidence

We develop a theoretical framework to analyze the effects of immigration on native job amenities, focusing on work schedules. Immigrants have a comparative advantage in production at, and lower disamenity cost for nighttime work, which leads them to disproportionately choose nighttime employment. Because day and night tasks are imperfect substitutes, the relative price of day tasks increases as their supply becomes relatively more scarce. We provide empirical support for our theory. Native workers in local labor markets that experienced higher rates of immigration are more likely to work day shifts and receive a lower compensating differential for nighttime work.

Comparative Trade Analysis Between Indonesia and Organization Islamic Country

Globalization that took place in the last few decades has caused various changes in the world economic order. This effort was also carried out by Muslim countries with the aim of improving economic relations and coordination at the regional level so that the Organization of Islamic Cooperation (OIC) was formed. This study analyzes the comparative advantage and trade patterns between Indonesia and the OIC countries which are limited by 10 OIC member countries which have the largest average export value from Indonesia over the last ten years. These countries include Bangladesh, Iran, Malaysia, Nigeria, Egypt, Pakistan, Jordan, Saudi Arabia, Turkey and the United Arab Emirates. Data analysis in this study uses a quantitative approach. In this study, statistical software tools will be used, namely Microsoft Excel to calculate RCA, RSCA and also trading patterns of the 10 OIC countries with the largest trade volume, Indonesia tends to have a comparative advantage in products of Animal or vegetable fats and oils and their cleavage (HS 15) and Man-made staple fibers (HS 55) where these products are products that have a comparative advantage in the ten countries. Indonesia managed to maintain the same comparative advantage in 2005 and 2020 against the United Arab Emirates (UAE) where the superior product group in those 2 years was exactly the same and only changed its ranking position.

Comparative Advantage in Innovation and Production

This paper develops a dynamic model of innovation and international trade in which agents can direct their research efforts to specific goods in the economy. Trade affects the direction of innovation through its impact on the expected market size for an invention, leading to a two-way relationship between trade and technology absent in standard quantitative Ricardian models. Following a theory-consistent strategy to estimate the extent of endogenous adjustments in technology, I find that they can account for about half of the observed variance in comparative advantage in production in a sample of 29 countries and 18 manufacturing industries. In addition, the model suggests that standard Ricardian models overestimate the reductions in real income from increases in trade costs and underestimate the rise in real income due to trade liberalizations. (JEL F11, F14, L60, O31, O32)

Education and the Evolution of Comparative Advantage

We provide the first evidence that low- and middle-income countries with high education levels were more successful in developing comparative advantage in products unrelated to those they already export. In contrast, controlling for the relatedness of target products to these countries’ exports, education appears unimportant for developing comparative advantage in products that are intrinsically complex or education intensive. These results are supported by analysis of the evolution of comparative advantage in 1,240 products from 49 low- and middle-income countries between 1995 and 2015. They are robust to corrections for measurement and specification errors, for institutional, infrastructure, and foreign direct investment-related factors, for regional specialization patterns, and for each economy’s degree of industrial dynamism prior to 1995. These results suggest that the key role of education when seeking to shift from peripheral to core products is to help a country cope with unfamiliar challenges, and so overcome path dependence.

Optimization Research of Regional Distribution of Hainan Agricultural Industry Based on Comprehensive Comparative Advantages

Based on the statistical data of 18 cities or counties in Hainan from 2011 to 2018, this research comprehensive utilize agricultural production comparative advantage and environmental comparative advantage to build a comprehensive comparative advantage system, guide the optimization of Hainan's agricultural industry layout. The result show that the comprehensive comparative advantages and environmental bearing capacity of Sanya, Qionghai, Wanning, Baoting and Qiong Zhong are bigger than 1, have significant advantage in agricultural production; And the comprehensive comparative advantage of Ding'an, Tunchang and Ledong is bigger than 1, but the environmental carrying capacity is between 0-1, so they are medium advantage zone of agricultural production; The comprehensive comparative advantages and environmental carrying capacity of Haikou, Wenchang, lin'gao, Danzhou, Dongfang, Lingshui and Changjiang are all between 0-1, are disadvantaged area of agricultural production. According to the evaluation results of comprehensive comparative advantagesw, the following optimization paths are proposed, firstly, it is proposed to improve the significant advantages zone, and limit the scale of low efficiency and high consumption of agricultural products in medium advantages zone, and adjust the industrial structure and layout of the disadvantaged zone. Secondly it is proposed to promote the production mode of comprehensive development of agriculture, forestry, animal husbandry and fishery. Thirdly, it is considered of multi compliance of the impact of planting, animal husbandry and fishery layout on the environment. Then the pollutant discharge in agri-production should be strengthening controlled. Finally, this research puts forward some policy suggestions to support the optimization of regional layout of agricultural industry.

Immigration and Work Schedules: Theory and Evidence

We develop a theoretical framework to analyze the effects of immigration on native job amenities, focusing on work schedules. Immigrants have a comparative advantage in production at, and lower disamenity cost for nighttime work, which leads them to disproportionately choose nighttime employment. Because day and night tasks are imperfect substitutes, the relative price of day tasks increases as their supply becomes relatively more scarce. We provide empirical support for our theory. Native workers in local labor markets that experienced higher rates of immigration are more likely to work day shifts and receive a lower compensating differential for nighttime work.

Optimization of national food production layout based on comparative advantage index

A large amount of land and water was needed for food production. In China, the geographical mismatch of land and water resources is increasing the structural tensions among spatial water and land reallocation in national food supply chain. Unreasonable national food production layout would threat land and water security. To improve food production self-sufficiency, an optimization model of national food production layout was established based on the agricultural food production comparative advantage index (ACI) and the linear programming optimization. ACI was built based on the local land, water endowment and socio-economic features, to evaluate the suitability for agricultural food production in each province. In this study, the objective function is maximization of the provincial agricultural food production comparative advantage index, and minimization of the provincial water and land footprint of agricultural food production. The constraint condition includes the natural resources, social demand, ecological environment and production condition. The optimal results showed that the maize production in Tianjin, Shanxi and Shaanxi has an obvious decrease and the production of soybean in Guangdong, Hainan and Yunnan increase after optimization. The corresponding adapting strategy was suggested to ensure the land, water security as well as sustainable food supplying. The objective of this study is to illustrate how an optimization model could be possibly used to adapt unreasonable food production layout for achieving the synergies between land, water and food.

The policy analysis matrix of pulse crops production in Bangladesh

This study examined the relative efficiency of producing of selected pulse crops in Bangladesh and their comparative advantage in international trade. To know the comparative advantage in production of selected pulse crops. The study have calculated net financial and economic profitability, nominal protection coefficient of output (NPCO), nominal protection coefficient of input (NPCI), effective protection co-efficient (EPC), private cost ratio (PCR), policy analysis matrix (PAM) and domestic resource cost (DRC). Data used in this study were collected through Household surveys from 300 sample farms located in 12 villages under 6 districts in Bangladesh for the period 2015 to 2016. The selected pulse crops i.e lentil, chickpea and mungbean cultivation at farm level is very much remunerative to its growers. The domestic-border price ratio of selected pulse crops indicates that domestic pulse production was taxed and consumers were subsidized. The border price of selected pulse crops at producer level was mostly higher than the domestic producer price indicating that there is a wide scope to cultivate pulse crops for import substitution in Bangladesh. Policy Analysis Matrix for selected pulse crops under import parity prices showed that revenue transfer (Tk -14,755/mt) was negative indicated that government policies affect negatively to the pulse producer. The input transfer (Tk -1108/mt) was also negative indicating that the government has implemented input subsidy policy to the crop sector to offset higher cost of production. The domestic factor transfer was positive (Tk 15,171/mt) indicating that opportunity costs of non-tradable inputs were lower than their market prices. Finally the net profit/net policy transfer (Tk -28,503/mt) was negative which means that, the producers earn less profit and cannot minimize loss under existing condition and vice-versa. This means that under free trade, producers could make more profit in contrast to the existing policy environment. The NPCO values less than one imply that policies do not provide nominal protection for the pulse producers. The findings based on the indicators of NPCO, NPCI, EPC and PCR conclude that the existing government policy environment tends to protect the interest of the pulse producers in agricultural sector at production level. DRC results indicated that Bangladesh had comparative advantage of producing pulse crops and production of pulse crops would be highly efficient for import substitution.Bangladesh J. Agril. Res. 43(1): 109-123, March 2018

FEATURES OF UKRAINE'S PARTICIPATION IN INTERNATIONAL CONTRACTUAL RELATIONS

The article highlights theoretical and practical aspects of economic rivalry escalation between countries in the process of deepening international economic relations, which are not mediated by investments. The purpose of the research is to summarize the empirical data and theoretical developments of the determinants, macroeconomic effects, and peculiarities of the countries’ participation in international production and marketing cooperation through the format of non-investment contractual relations and investigate their potential for Ukrainian enterprises. The subject of the research is contractual relations as an instrument for incorporating the country’s enterprises into global value chains. Methodology. Assessment of competitive advantages of countries integrated into the international subordinate production was carried out using the techniques of Vollrath T.L. and G. Lafay. Results. Based on the generalization of empirical data and theoretical studies on the latest trends in deepening economic rivalry among participants in international cooperative relations, there were found out factors of activation of non-investment forms of external expansion by TNCs, in particular, the exhaustibility of the extensive way of cross-border production development and investment, and the increased level of investment risks caused by permanent economic crises, political instability, corruption of local elites in the countries where TNC units are localized, regional military conflicts. Estimation of the level of comparative advantages according to Vollrath T.L. and G. Lafay approaches made it possible to identify the competitive positions of the producers of individual countries in the system of international cooperation. Estimation shows that among 41 tested countries, the most significant index of the identified comparative advantages in production under contract was demonstrated by the following countries: Bangladesh, Bolivia, Bosnia and Herzegovina, Paraguay, Romania, South Korea, Hungary, Poland. Additional testing according to the criteria values of the Lafay index confirmed the list of countries with the highest level of advantages Honduras, El Salvador, Nicaragua, Poland, Romania, Morocco, Malaysia, Hungary, Czech Republic, China, Bolivia, and Albania. Assessment of the state and potential for the development of international cooperative relations for Ukraine allowed us to identify a number of destructive factors, in particular, the lack of a relevant legal framework for contractual relations and the instability of the political and economic situation in the country. Practical implications. Possibilities for deepening the participation of Ukrainian enterprises in the contractual relationship system are related to their resource and technological comparative advantages, in particular, the availability of free production facilities, a relatively high level of production processes automation in comparison with selected African and Asian countries; availability of skilled labour force with its relatively low cost to the customer countries. Value/originality. The study of the Ukrainian enterprises’ participation in the system of international cooperation and the definition of sectoral specifics in the use of cross-border contractual relations make it possible to identify the problems of macroeconomic effects for the national economy.

Analysis of the impact of government subsidies and measuring the comparative advantage of potato crop production in Al-Anbar Governorate (The district of Fallujah applied state)

The objective of this study was to analyze the effect of the government intervention on the potato crop in Al-Anbar governorate in Falluja district, An applied model knowledge to show the competitiveness and relative advantage in producing this crop through quantitative analysis of the distortions between input and output prices facing the local product using a series of matrix- Analysis of Policy (PAM) The study reached a number of conclusions, the most important of which is that Al-Anbar province has a comparative advantage in production and is highly efficient when using local resources. The domestic resource cost factor (DRC) is 0.23, (EPC) of 0.71 indicates that domestic producers receive lower returns than social returns, and this explains the absence of government support for crop production. The study recommended a number of recommendations, the most important of which is land reclamation, expansion of potato crop cultivation, encouraging investors to establish potato-cooling warehouses, and developing plans to activate and increase the role of the government subsidy policy for local products.

Comparative Advantage in Innovation and Production

This paper develops a multi-country, general equilibrium, semi endogenous growth model of innovation and trade in which specialization in innovation and production are jointly determined. The distinctive element of the model is the ability of the agents to direct their research efforts to specific goods, in a context of heterogeneous innovation capabilities across countries and contemporaneous decreasing returns to R&D. The model features a two-way relationship between trade and technology absent in standard quantitative Ricardian trade models. I calibrate the model using a sample of 29 countries and 18 manufacturing industries and quantify the importance of endogenous adjustments in technology. I find that endogenous adjustments in technology due to directed research can account for up to 52.8% of the observed variance in comparative advantage in production. In addition, the model suggests that standard Ricardian models overestimate the reductions in real income from increases in trade costs and underestimate the increment in real income due to trade liberalizations.

Analysis Economic of Medicinal Plants production in tropical Area

In this study, the comparative advantage of medicinal plants production in tropical regions of Iran was investigated using Advantage comparative index and policy analysis matrix (PAM) in 2015.The result, based on the comparative advantage indices, indicate that has a comparative advantage in the production of Carla, Ajowan, Cumin, Anise, Licorice , Dill and has not comparative advantage in Plantago production. Based on comparative advantage indices crops of Carla, Licorice, Anise, Ajowan, Dill and Cumin respectively ranked first to sixth. The amount of nominal protection coefficient on output (NPC), indicated that there is an indirect subsidy on the producer of Cumin, Anise, Plantago and Dill; means that government policies support the domestic production. And also indirect taxation on outputs Carla, Ajowan and Licorice. Amount of nominal protection coefficient on input (NPI) represented the indirect subsidy on tradable inputs of all crops, which means that the government policies supported the supply of production inputs. Effective protection coefficient index (EPC) for Cumin, Anise, Plantago and Dill was more than 1, showed that the government's policies support production process. Net social profit (NSP) for all crops was positive and indicating social profitable of crops in area. Social Cost Benefit (SCB) showed that this area in production and trade of all crops except Plantago have comparative advantage.

Relatedness and diversification in the European Union (EU-27) and European Neighbourhood Policy countries

This paper analyzes the process of industrial diversification in the countries that were part of the European Union (EU-27) and those that were the target of the European Neighbourhood Policy (ENP) in the period 1995–2010 by means of world trade data derived from the BACI database (elaborated UN Comtrade data). Our results show that in both the EU-27 and the ENP countries, the evolution of the productive structure—as proxied by the export mix—is strongly path-dependent: countries tend to keep a comparative advantage in products that are strongly related to their current productive structure, and they also diversify in nearby products. However, this effect is much stronger for ENP countries, signalling their lower resources and capabilities to diversify in products that are not very related to their productive structure. We also show that the future export structures of countries are affected by their imports: both the EU-27 and ENP countries keep a comparative advantage in products that are strongly related to their imports, but only EU countries show a strong capability to diversify in new products from related import sectors. Our results also hold when controlling for geographical and institutional proximity.

Where Pakistan Stands Among Top Rice Exporting Countries, an Analysis of Competitiveness

AbstractUnder the umbrella of WTO, the reduction in trade barriers has forced the policy makers to focus on the export competitiveness. Rice is an important source for foreign exchange earnings for the economy of Pakistan, keeping in mind of this fact, the competitiveness of Pakistan's rice with other major exporters was examined by applying revealed competitive advantage. The domestic consumption trends of rice among the major rice exporting countries were also analyzed in the current study. The results revealed that as compare to other major exporters of rice in the world, Pakistan had high competitive and comparative advantage in the production of rice. The comparison of the movements in comparative advantage indices for Pakistan with the major world rice competitors/exporters showed that Pakistan possessed relatively high comparative and competitive advantages in rice production. The declining domestic per capita consumption of rice and increasing trends in competitiveness for Pakistan clearly revealed the expected potential of higher growth which meant that rice exports from Pakistan could continue to play an important role for the earnings of foreign exchange. In order to exploit the potential benefits of rice exports, we need to strengthen the competitiveness in rice sector of Pakistan.

CASHEW NUT PRODUCTION IN INDIAN SUBCONTINENT WITH EMPHASIS ON CARBON SEQUESTRATION POTENTIAL IN A CHANGING GLOBAL CLIMATE SCENARIO

India has a maximum area (21.6%) under cashew nut and is the third largest producer (17.3%) of raw nuts in the world. The country is the second largest exporter, accounting for 34% of the world’s export of cashew kernels having a comparative advantage in production and processing on account of its cheap and skilled labour force. The yields in India are poor at 860 kg/ha as compared to 4,125 kg/ha in Vietnam and 2,000 kg/ha in Nigeria. There is an urgent need to expand and fully utilize the potential if India has to keep pace with growing global demand, retain market share and stay ahead of the rapidly emerging competition in the world market. The industry employs over three lakh persons with more than 95% of them being women in India. It earned a foreign exchange of Rs. 22,889 million, but the gap between actual production of raw nuts and demand by the processing industries has made India to resort to imports of raw cashew warranting a policy change to encourage more local production and thereby preventing the outflow of valuable foreign exchange. The present paper deals with impact of climate change in cashew production, influence of various weather parameters on flowering and yield, carbon sequestration potential of cashew nut to mitigate climate change under different land use systems and a methodology for calculation of tradable carbon credits with a holistic approach to withstand competition from global players. The paper also deals with production practices in vogue and the improved practices for higher production and productivity, processing and marketing and export competitiveness from the Indian subcontinent.

Nigerian Cassava Potentials in National Economic Development

Cassava had been a utility crop with diverse food provision and high yielding potentials. Apart from serving as food for human consumption, it has numerous industrial uses like chips, flour, starch and the leaves which have a high export demand. Nigeria’s comparative advantage in production has made it have a very high potential in face of the dwindling World oil prices. Nigeria cassava production has been with an annual output of over 38 million tons of tubers and was adjudged as one of the largest producers of cassava in the world. Total area harvested in 2009 alone was estimated to be 3.13 million hectares, with an average yield of 11.7 tons/ha-1. Its high employment income generation and 20 percent cassava flour inclusion in bread made it a crop to be harnessed and fully utilized to raise economic development in Nigeria.

Competitiveness of Indian Agriculture Sector: A Case Study of Cotton Crop

This study has critically examined the issue of Cotton subsidies in USA as well made a comparative analysis of cotton sector between USA and India in the background of USA claim that African cotton producers’ plight was not due to the trade-distorting subsidies of USA but was on account of upward trend in cotton production in India and China in defiance of market signals. This study also estimated the comparative advantage in cotton production and cotton export diversification by calculation various indicators. Result shows that India has comparative advantage in production and export of cotton in recent years. This study highlights that USA has 14 percent share in world production, however, its share in world export is 38 percent. USA exports 86 percent of cotton production to other countries. The cost of producing cotton is highest in USA, which is 4.5 to 6 times higher than India. During 1995-2010, USA has given about $37 billion to cotton producers though various programmes like counter-cyclical payments, decoupled income, commodity certificates etc. Despite high cost of cotton production, USA is enjoying artificial comparative advantage in cotton market due to high level of domestic support given to farmers and big corporation in USA.