Relative Comparative Advantage Research Articles

A Historical Materialist Reading of the Contested Relations between Greece and Turkey

ABSTRACT This article examines the contested relationship between Greece and Turkey from a historical materialist approach. It seeks to explain the very essence of this contestation rather than merely focusing on its surface forms. While doing this, we eschew intra-Marxist theoretical debates not to exceed the research scope. The article argues that the foreign policies of Greece and Turkey have indeed been subject to considerations of the dominant bourgeois classes in both countries that have been stimulated as well as bound by Euro-Atlantic imperialism. It considers the relative comparative advantages of Greece and Turkey’s relational and possessional capabilities. It puts forward that the historical materialist approach has better explanatory power and offers an alternative reading. It elaborates upon the tense relations between the two countries, showing the interwoven connections with imperialism at national and international levels. It underlines how the contestation between Greece and Turkey has been encouraged and delimited by Euro-Atlantic imperialism.

The EU agri-food system in the recent crisis scenarios

The European Union agri-food system has faced major challenges in the last years due to the Covid-19 pandemic and the Russian-Ukrainian war. In a scenario where millions of people all over the world suffer from hunger, the uncertainty of food availability and commodity price surge have made it difficult for them to find and afford food on a large scale even in countries, which apparently are not exposed to those risks. Within the European Union (EU), this has depended upon the vulnerabilities and dependencies inherent in the agri-food system. In order to react and cope with emergency scenarios, the European Institution has adopted some temporary measures. The present paper, verifies the level of the EU agri-food Self-Reliance system through the development of Self-sufficiency calculation and the Import Dependency Index as well as the EU comparative advantage through the Gerard-Lafay Index and the relative comparative advantage (Vollrath). On the basis of the achieved results, recommendable actions have been suggested in order to secure the food supply on one hand, and satisfy the EU demand even in case of future adverse events, on the other. In addition, further actions that need to be taken, recommended by the European institutions, have been described.

Analysis on export competitiveness of oilseeds with BRICS countries

The paper attempts to assess India’s trade intensity as well as the revealed comparative advantage (RCA) of theoilseeds with respect to trade with BRICS (Brazil, Russia, India, China and South Africa) disaggregate levels. Thestudy assesses the structure of the comparative advantage from 2001 to 2018. The study found that TI (Trade Intensity) with the BRICS group was more in comparison to ROW (Rest of world). EEI (Export Intensity Index) for BRICS countries was also more intense in comparison to ROW whereas III (Import Intensity Index) showed less intense in comparison to ROW. Relative comparative advantage for groundnut, sesame and mustard was observed with the BRICS group.

COMPARATIVE ADVANTAGE OF TURKISH AEROSPACE INDUSTRY IN THE CONTEXT OF INDUSTRIAL CLUSTERS

The purpose of this study is to investigate the relative comparative advantage and specialization level of Turkey’s aerospace industry under industrial clustering context. To estimate the degree of industrial specialization; Balassa (1965), Balassa-Noland (1989), Vollrath (1991), and Laursen (2015) indices were used. The results revealed that Turkey's aerospace industry has not yet reached the specialization level to create any comparative advantage. In the light of concurrent data and reports presented by the World Trade Organization (2022), Defense Industry Manufacturers Association of Turkey (2022), and Turkish Exporters’ Assembly (2022); it is seen that the industry outputs are almost entirely created by aerospace clusters’ stakeholders in Turkey. From this point of view, some policy recommendations are presented by synthesizing the research findings with the industrial cluster literature.

Bilateral Trade Between India and Bangladesh: A Pre- and Post-SAFTA Period Analysis

India and Bangladesh, the two neighbouring economies of South Asia, are at the centre of attraction in the foreign trade literature. The present article analyses the pattern of trade between India and Bangladesh before and after joining the South Asian Free Trade Area (SAFTA). The study covers twenty-five years, from 1996 to 2020 and used indices, namely, the Index of Revealed Comparative Advantage (RCA)Index, Trade Intensity Index (TII) and Trade Complementarity Index (TCI), to analyses the bilateral trade. Although Bangladesh has a relative comparative advantage in some of the products, India has a maximum comparative advantage in relatively more product groups. The index value of the TII is more than one for both countries during the study period, which means that the bilateral trade flows are highly intensive compared to their trading partner of the rest of the world. Furthermore, at the bilateral level, the index value of trade complementarity reflects a partial match between each country’s export supply and import demand because the value of indices stays between 0 and 100 during the entire study period. It also reflects that India’s export complementarity with Bangladesh is reciprocating, indicating growing trade demand for Indian product in Bangladesh’s market and India’s export supply becomes more compatible to meet imports demand of Bangladesh. India and Bangladesh have huge potential for bilateral trade, because they belong to Indian subcontinent, have geographical proximity, abundant natural resources and pursed similar policies towards achieving economic development. Neighbouring Countries, Bilateral Trade, Trade Intensity, Index of Revealed Comparative Advantage, Trade Complementarity, Trade Pattern, Exports, Imports JEL Classification: F10, F13, F14, F47

Digital economy enables common prosperity: Analysis of mediating and moderating effects based on green finance and environmental pollution

This study aims to explore the impact of the digital economy on common prosperity. For this reason, a bidirectional fixed effect model based on panel data of 30 provinces (cities and autonomous regions) in China is empirically tested. The results show that the digital economy can significantly improve the level of common prosperity, and has a positive impact on green and sustainable economic activities such as promoting environmental improvement, coping with climate change and resource conservation and efficient utilization, which is still valid after a series of robustness tests. It also demonstrates the role of green finance as a partial intermediary in the process of shared prosperity and as a negative regulator of environmental pollution. Analysis of regional heterogeneity shows that the enabling effect of the digital economy on common prosperity is more significant in eastern and central provinces, but not significant in western provinces. The results of this study have some reference significance for some countries, where the gap between rich and poor has widened during the epidemic, to narrow the income gap and provide ideas for the parties that made commitments at the Glasgow Climate Summit (COP26) to curb warming and reduce CO2 emissions. That is, continuous improvement of digital infrastructure; emphasis on the intermediary role of green finance and the negative regulating role of local environmental pollution levels; following the relative comparative advantages of regions and formulating differentiated policies for the development of the digital economy, etc.

Relative comparative advantage and direction of trade of raisins from Afghanistan

Relative comparative advantage and direction of trade of raisins from Afghanistan

The effects of regional capacity in knowledge recombination on production efficiency

Knowledge recombination, combining knowledge existing (exploitation) or new knowledge capacity (exploration) for creating knowledge collaboration, is one of the important ways of achieving innovation. However, little has known about how the knowledge recombination types affect differently to production efficiency at a regional level. This study explores the relationship between the knowledge recombination types of exploitation and exploration and regional technical efficiency by using the empirical data sets combining EPO PATSTAT, Eurostat, and Cambridge Econometrics regional database. For this purpose, three stages of analysis have been deployed. Firstly, CPC co-occurrence network analysis and relative comparative advantage (RCA) measures are used to construct knowledge space and measure regional capacity. Then, using the stochastic frontier analysis, the production efficiencies of the European NUTS 2 regions are measured. With all estimated measures, the effects of both exploration and exploitation of knowledge recombination on regional production efficiencies are estimated. The results show the positive effect of exploration on regional production efficiency, which highlights the importance of extending the range and variety of knowledge bases.

The analysis of competitiveness of Mediterranean countries in the world citrus trade

With their low calorie and rich nutrient content, citrus fruits are an important element of the daily diets of individuals living in Mediterranean countries. Although the origin of citrus fruits lies in Southeast Asia, today the Mediterranean Basin comes to the fore in terms of production and trade. In this study, the competitiveness of the countries in the Mediterranean Basin, which has a coast to the Mediterranean, in the world citrus trade between 2005-2019 was competitiveness demonstrated. for this research, Balassa's relative comparative advantages, revealed symmetric comparative advantage and Lafay indexes are used. As a result of the study, the rate of increase in the total production and exports of the can countries in the Mediterranean Basin is realized under the world average. However, the noticeable dynamic increase in the production and exports of the developing countries in the region ensures the continuity of the competitive power of the Mediterranean Basin. To increase the market competitiveness of the region, it is suggested that state policies make citrus production activities an important issue.

A Longitudinal Analysis of the Comparative Advantage of Three Key Industries in Mexico, Vietnam, and Japan Under Frameworks for Trans-Pacific Partnership

We conducted an analysis for the historical strengths and trends of three key economic sectors – agricultural, automotive, and pharmaceutical - in terms of domestic production and international trade for Mexico, Japan, and Vietnam following the conclusion of the Pacific Alliance in 2011, which enabled Mexico to trade freely with other large countries in Latin America and further free trade initiatives such as the Trans-Pacific Partnership (2015) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2018 that included countries in Asia. We used Revealed Comparative Advantage as the empirical framework. The findings indicate that the conclusion of these trade agreements caused certain sectors to gain and certain sectors to lose relative comparative advantage. Vietnam lost comparative advantage in its agricultural sector relative to Mexico’s, which means Mexico could develop its agricultural sector further to support trade with Vietnam. Vietnam’s pharmaceutical industry remained little changed relative to Mexico’s, which means Vietnam should continue focusing resources on the pharmaceutical industry relative to the bilateral trade volume between the two countries.

ОЦІНЮВАННЯ МІСЦЯ УКРАЇНИ В СИСТЕМІ МІЖНАРОДНОГО БІЗНЕСУ

The article examines the peculiarities of Ukraine's strategic partnership during the pandemic, political and economic crises, integration processes, which significantly affect the state of the country in international business. The dynamics and trends of modern foreign policy relations contribute to the activation of strategic partnership between states and the search for new partners. It should be noted that in 2020, the Association of Southeast Asian Nations and Australia, China, the Republic of Korea, New Zealand and Japan signed the Regional Comprehensive Economic Partnership (RCEP) Agreement. Therefore, Ukraine is seriously determined to deepen relations with Asian countries and in recent years has been increasing the volume of foreign trade with the URVEP region. This is evidenced by the increase in turnover with it by 13.8% to 20.6 billion dollars USA in 2020. Accordingly, the shares of exports (18.8%) and imports (20.9%) with this region increased. It was determined that, in addition to the Eastern Partnership, Ukraine should develop Asian and American directions. The study determined the possibilities of realizing the export potential of Ukraine on the markets of the EU, Asia and Africa by calculating the relative comparative advantages by product groups. It was determined that trade with the EU does not provide significant benefits for Ukraine, as most export items do not create sufficient added value. Accordingly, it is necessary to correct the deformation of the commodity structure of export-import from the EU. According to the results of the study of the comparative advantages of Ukrainian exports on the markets of Asia, the EU and Africa, those product groups that have prospects for development, such as plant materials, natural and artificial fur, lead and its products, meat and by-products, have been determined. The results can be used to justify the state policy of supporting national producers of products with greater added value in order to create conditions for the formation of new and joining existing global value chains, which will significantly increase the level of economic security of Ukrainian trade enterprises.

Strengthening Lithuanian - Latvian Cross - Border Cooperation in the Context of International Trade

The article analyses the strengthening of the competitiveness of countries based on crossborder cooperation through the prism of international trade indicators. Due to the increase in international competition, countries, especially small economies, are finding it increasingly difficult to maintain their position in the global market and remain competitive if this position is pursued individually. It is therefore necessary to review competition strategies and reassess opportunities and competitive advantages, as well as to promote coopetition between border region companies at institutional level. The article presents a new approach to regional competitiveness, which is achieved not through the development of the competitive advantages of the regions of individual countries, but through their cooperation and thus achieving common benefits. This is particularly relevant for border regions, as their uniqueness allows them to exploit cross-border region cooperation, which can generate added value by utilising the potential of cooperating regions to complement each other and become a competitive hub for economic growth. Only a strategic partnership based on regional cooperation will promote cooperation between manufacturers in different regions and ensure the achievement of co-creation and international development goals. The article analyses the case of Lithuania and Latvia as an example of cross-border cooperation, as internationally these countries are often matched and treated as one region, but in fact they compete fiercely with each other for better positions in foreign markets. This also shows that Lithuania’s and Latvia’s foreign trade with the European Union (hereinafter - the EU) accounted for the largest share of their foreign trade. Secondary statistical data of the EU-28 Eurostat of 2010 - 2019 and Finger Kreinin, RCA, and Lafay indices were used for the study. After assessing the convergence of the Lithuanian and Latvian export structure according to the FKI index during the study and finding that the export structure of these countries is very similar, the relative comparative advantage of exports by individual product sectors was assessed on the basis of the RCA index and the comparative advantage on the basis of the LAFAY index. The study showed that both countries had comparative advantages in the same product groups. The identification of common points of contact has highlighted economic activities, the development of which could be given more attention through the cooperation between the countries, and which would ensure overall economic benefits. The article concludes with strategic recommendations and measures to promote cross-border cooperation and increase the region’s competitiveness. The article contributes to the regional economic subject literature, as the concept of cross-border region competitiveness is developed by promoting not the competition of individual regions, but their cooperation by discovering common similarities in economic development. The article presents methodological logic and empirical calculations that would allow policy makers to develop cooperation strategies with those border regions with which it is expedient to cooperate for greater economic benefits. Promoting regional development and reducing regional disparities not only between regions within the same country but also between different countries requires the patient and consistent work of governments, businesses and academia, as well as individual communities, to develop measures and initiatives to promote cross-border cooperation.

Honey production competitiveness between the Visegrad countries analysis based on the relative comparative advantages indices

Honey has beneficial physiological effects, it is a valuable agricultural export product and widely used worldwide as food and medicine also. The primary aim of this present study is to demonstrate the honey production and trade of the EU member states known as Visegrad Four between 2000 and 2018. Also an objective of this article is the calculation of the actual comparative advantages of the Visegrad Four in foreign trade in natural honey using the RCA (relative comparative advantages) indices. During the research and analysis, different international and EU Databases were used. Secondary data used in the analysis derive from the reports of National Apiculture Programmes, the European Commission and the European Committee and from the databases of Faostat, Trademap and the United Nations Comtrade Database. V4 countries account for about 25% of the total EU apiculture sector, and the cooperation of Visegrad Four countries in the field of beekeeping could make a major contribution to the competitiveness of the sector. Examining the import and export data, using RCA indices it was proved that Hungary has a comparative advantage in terms of natural honey, however the competitiveness of the beekeeping sector in the region depends on the common performance of all four countries. Due to the stability of the sector and the positive externalities, authors suggest the further support of the apiary in the region.

Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade

This paper introduces a new concept of comparative carbon advantage as a potential climate mitigation tool. According to the concept, welfare gains in terms of reduced global CO2 emissions can be achieved by exploiting cross-country sectoral differences in carbon intensity and decarbonized electricity system. The paper empirically tests the concept by utilizing annual data of Sweden between 1995 and 2008. Overall, the results show that Sweden contributed nearly 590 million tons of potential CO2 emissions savings through its exports by having an efficient and low-carbon production and electricity system. This total amount of 590 million tons of CO2 emissions relates to the total savings made if the same amount and composition of Swedish exports was produced using the world average technology. Furthermore, the contribution of Sweden’s low carbon electricity generation was over 34% of the total savings, of which some 20% were direct exports of electricity and 80% was electricity embodied in exported products. This research provides a critical understanding of the impact of efficient production and low carbon electricity in generating relative comparative carbon advantage—a policy relevant aspect for the increasingly globalized, and carbon-constrained, world.

Why are the pepper prices declining? An analysis of changing production and trade scenario in India

During the 1950s, India was the major player in the pepper market. Recently India has dropped to 4th position in production and exports. The price per kilogram of pepper in Cochin market reduced from ` 687 to ` 383 between 2014-15 and 2018-19. This manuscript attempts to study the reasons for the decline in India’s share in world pepper market and the recent fall in prices. The secondary data from the Food and Agriculture Organization, World Bank - World Integrated Trade Solutions, Reserve Bank of India and Spices Board of India were used for analysis. Transitional probability matrix was deployed to analyse the change in the direction of trade, relative comparative advantage and competitive index was used to study India’s market power in the international market. There has been a change in the direction of trade since 1999-2000. The results revealed a four per cent decline in area under pepper during 2000-2018, and now Indian pepper market has become import oriented with a CAGR in imports of 13 per cent during 1981 to 2000 and four per cent during 2001 to 2016. A similar trend was observed in production and exports as it got reduced from 25 per cent and 20 per cent in 1960s to ten per cent and five per cent respectively, in 2016. Increased supply in the international market, decreased production, cheaper imports and illegal imports have pulled down the domestic prices sharply in recent years. From 1995, workers’ wages have increased by around 10 per cent, and with decreasing prices, the Indian pepper industry looks grim. Appropriate policies to safeguard Indian farmers’ interest, such as export promotions, increasing productivity, delivering reasonable prices and incentives for processors would instil confidence in the farming community and the industry as a whole.

The Determinants of China's International Portfolio Equity Allocations

We analyze shifts in the structure of China's capital outflows over the past decade. The composition of gross outflows has shifted from accumulation of foreign exchange reserves by the central bank to nonofficial outflows. Unlocking the enormous pool of domestic savings could have a significant impact on global financial markets as China continues to open up its capital account and as domestic investors look abroad for returns and diversification. We analyze in detail the allocation patterns of Chinese institutional investors (IIs), which constitute the main channel for foreign portfolio investment outflows. We find that, relative to benchmarks based on market capitalization, Chinese IIs underweight developed countries and high-tech sectors in their international portfolio allocations but overinvest in high-tech stocks in developed countries. To further examine Chinese IIs' joint decisions on destination country-sector pairs, we construct continuous measures of revealed relative comparative advantage and disadvantage in a sector for a country based on trade patterns. We find that, in their foreign portfolio allocations, Chinese IIs overweight sectors in which China has a comparative disadvantage. Moreover, Chinese IIs concentrate such investments in countries that have higher relative comparative advantage in those sectors. Diversification and information advantages related to foreign imports to China seem to influence patterns of foreign portfolio allocations, while yield-seeking and learning motives do not.

Changes in comparative advantages of the Polish food sector in world trade

Research background: The period after Poland's accession to the European Union is a period of systematic development of Polish foreign trade in food products. Positive changes were visible already in the first year, but trade turnover and the balance of food exchange were even more dynamic in the subsequent years of Poland's membership in the EU.
 Purpose of the article: One way to assess the competitiveness of Polish food sector is the analysis of comparative advantages (relative) in the trade of products of this sector. So the aim of the presented research is to assess the comparative ad-vantages of the Polish food sector (including its most important chapters).
 Methods: The analysis of comparative advantages was based on relative trade advantage index (RTA) and the Lafay trade balance index (TBI). The analyses cover the years 2004?2017. The data source was the WITS-Comtrade trading database, in which trade flows are expressed in USD. The analysis was carried out at the HS chapter level.
 Findings & Value added: The analysis of comparative advantages in the Polish trade in food products showed that during the membership in the European Union Poland had relative comparative advantages in the food trade on the world market. In the years 2004?2017 Polish export in agri-food products increased more than 4.5 times and the positive balance of trade in these products increased more than 9.0 times. Products in trade of which Poland had comparative advantages in 2017 accounted for 55.5% of trade of the Polish agri-food sector in the global market, i.e. by 12.8% more than in the year of accession of Poland to the EU. The dynamic development of trade in food products after Poland's accession to the EU, as well as significant comparative advantages in trade in these products, testify to the competitiveness and high importance of the Polish food sector for the national economy.

Global Publication Productivity in Materials Science Research: A Scientometric Analysis

This paper examines the world research profile and growing trend of publications on Materials Science for fifteen years spanning 2002-2016 based on the data retrieved from ISI Thomson Reuters Web of Science by using various statistical tools and techniques used in the emerging field of Scientometrics. The study uses Science Citation Index of ISI Thomson Reuters Web of Science for the period from 2002 to 2016 (for a period of fifteen years) of top fifteen countries in the field of Materials Science. The indicators used in this study are Relative Growth Rate (RGR), Doubling Time (Dt.), Activity Index (AI), Publication Efficiency Index (PEI), Relative Comparative Advantage for Publication (RCAP). The findings of the study reveal that the percentage share of Materials Science publications of the World is 5.61 out of the total scientific publications of the World; the study indicates that China topped the table with 2,87,736 publications, followed by the USA (2,17,422); there is an exponential growth of publication for the world (R2 = 0.967) in Materials Science field; the Annual Growth Rate (RGR) is highest for Iran (through it ranked fifteenth in terms of publications), i.e. 27.00; Activity Index is more than one for nine countries which indicates that the research efforts of these countries correspond to the worlds average; It is evident from the study that the USA (1.48), England (1.19), Australia (1.14), Germany (1.09) and France (1.07) have more than one PEI which clearly indicates that there is an impact of publications in Materials Science by these countries is more than the research effort devoted during 2002 to 2016; China topped the list with the highest mean value of Relative Comparative Advantage for Publication (RCAP) i.e. 2.23. RCAP value of China, South Korea, Taiwan, India, Iran, Japan, Russia and France are more than one. The data indicate that these countries are specialised in the field of Materials Science.

China's Impact on Global Financial Markets

We analyze shifts in the structure of China’s capital outflows over the past decade. The composition of gross outflows has shifted from accumulation of foreign exchange reserves by the central bank to nonofficial outflows. Unlocking the enormous pool of domestic savings could have a significant impact on global financial markets as China continues to open up its capital account and as domestic investors look abroad for returns and diversification. We analyze in detail the allocation patterns of Chinese institutional investors (IIs), which constitute the main channel for foreign portfolio investment outflows. We find that, relative to benchmarks based on market capitalization, Chinese IIs underweight developed countries and high-tech sectors in their international portfolio allocations but overinvest in high-tech stocks in developed countries. To further examine Chinese IIs’ joint decisions on destination country-sector pairs, we construct continuous measures of revealed relative comparative advantage and disadvantage in a sector for a country based on trade patterns. We find that, in their foreign portfolio allocations, Chinese IIs overweight sectors in which China has a comparative disadvantage. Moreover, Chinese IIs concentrate such investments in countries that have higher relative comparative advantage in those sectors. Diversification and information advantages related to foreign imports to China seem to influence patterns of foreign portfolio allocations, while yield-seeking and learning motives do not.

Collective bargaining, minimum wages and public procurement in Germany: Regulatory adjustments to the neoliberal drift of a coordinated market economy

This article analyses different types of labour clauses in public procurement regulation that have been enacted in Germany, a coordinated market economy that has experienced a ‘neoliberal drift’ including the decline of the traditional governance of labour and contracting out. Based on an analysis of relevant regulations adopted by the 16 Germany federal states, the article corroborates insights into the prominent role of left parties advocating for labour clauses in public procurement on a much broader empirical foundation than previous research. It adds to scholarly knowledge by revealing that the relative comparative advantage of regions with lower wage levels inhibits labour clauses in federal political systems. It finds that centre-right parties are willing to stipulate certain labour clauses in order to protect small-and medium-sized enterprises, which are core parts of their electoral support base.