Revealed Comparative Advantage Analysis Research Articles

DAYA SAING EKSPOR KOMODITAS TEMBAKAU INDONESIA SELAMA PANDEMI COVID-19

<em><span lang="EN-US">The excise contribution from the Tobacco Products Industry (IHT) in 2020 amounted to Rp170.24 trillion or 96.56% of all Indonesian excise revenue. The Covid-19 pandemic caused tobacco exports in 2020 to decrease by 6.41% or 2,134 tons. Based on these conditions, it is necessary to research the competitiveness of tobacco exports during the Covid-19 pandemic in the main destination countries. The method of determining the location used is a purposive method, namely in Belgium, Singapore, Dominican Republic, Sri Lanka, Germany, the Netherlands, and the United States. The data used is time series data for 38 months starting from August 2018 to September 2021. The analysis methods used are IIT (Intra Industry Trade), RCA (Revealed Comparative Advantage), and EPD (Export Product Dynamic). The results showed a) IIT analysis, that most countries experienced a decline during the Covid-19 pandemic. Countries that experienced a decrease were the Netherlands, Dominican Republic, Singapore, and Sri Lanka, while those that experienced an increase were Belgium, Germany, and the United States. b) RCA analysis in the seven main destination countries showed a strong position. c) EPD analysis of most of the main destination countries for tobacco exports showed positive results, except for the United States which experienced a decrease.</span></em>

Assessing Direction of India’s Exports: A Dynamic Framework

Decision on trade policies with emphasis on bilateral trade relationships needs knowledge about the direction of exports of the exporting country along with associated changes like degree of specialisation, etc. The direction of export for a product or sector can be taken as a set consisting of destination countries (DCs) and corresponding export potentiality. The set reflects the direction, composition and value of trade potentials and helps to decide export-boosting measures of several sectors, focusing on a country. The paper suggests the use of ratio and geometrically aggregated revealed comparative advantage (RCA) values for individual and combined sector growth (positive or negative), respectively. This approach overcomes the static properties of RCA and shift-share analysis typically used to reveal the patterns of trade direction. The pattern is investigated by geometric aggregation of ratios of RCA at the current period over the base period for each sector. The index follows log-normal distribution and shows fluctuations of RCA for a product/sector across time. Such curves of fluctuations for different countries may facilitate meaningful inter-country comparisons. Second, this paper suggests the use of bilateral RCA to determine the direction of India’s exports for a particular sector, enabling the determination of its potential markets. JEL Classification: F1, F4

Analysis of Indonesian Tea Export Competitiveness on the International Market

This research aims to determine the competitiveness of tea in the international market. The research method used the case study method (Case Study) by applying quantitative methods. The data used is secondary data from the Directorate General of Plantations, BPS, and UN Comtrade, namely data on tea exports, tea imports, total export value, total world export value for tea, and total world export value. The analysis used is RCA (Revealed Comparative Advantage) Analysis and Trading Specialization Index (TSI). The research results show that Indonesia's RCA value is between 1.24 – 1.74, so it can be concluded that Indonesia has comparative competitiveness. However, when compared with other countries, Indonesia is in third place, after India and China. The average TSI for Indonesia was 0.56 in the five years (2016 - 2020), which shows Indonesia's position as a tea-exporting country and is at a growth stage.

The Competitiveness of Indonesian Sugar Export in The South East Asia Region

Sugar industry has an important role in the Indonesian economy because of its ability to absorp a lot of manpower. AFTA (ASEAN Free Trade Area) provides transaction convenience both export and import between the member of ASEAN. This study aims to analyze the competitiveness of Indonesian sugar export inside ASEAN area and to estimate the trend of Indonesian sugar export. The competitiveness analysis uses RCA (Revealed Comparative Advantage) method while trend estimation uses Trend analysis. The RCA analysis result shows that Indonesia has low competitiveness but shows progress in last 3 years. While RCA analysis of Thailand and Myanmar shows declining trend. The declining trend of Thailand’s RCA is caused by the development of sugar cane based ethanol industry. While the declining trend of Myanmar’s RCA is caused by the decrease of sugarcane area and only temporary. The trend analysis result shows that Indonesian sugar export is increasing. The main export destination country for Indonesian sugar product is Vietnam. Vietnam also shows increasing trend in sugar import. So it will become an opportunity for Indonesia to increase its export value.

East Java Tobacco Competitiveness in the International Market

Tobacco production in East Java Province experienced various problems that caused the export performance of East Java Province tobacco to fluctuate in the international market. This study aims to analyze the comparative and competitive competitiveness of East Java Province tobacco exports in the international market from 2007 to 2021. The analytical method used in this study is Revealed Comparative Advantage (RCA) to analyze comparative competitiveness and the Trade Specialization Index (TSI) or Trade Specialty Index (ISP) to analyze competitive advantage. Based on the results of the RCA analysis, it shows that East Java Province's tobacco exports in the international market have strong comparative competitiveness because the RCA value is greater than 1, with an average value of 16.31. ISP analysis results are less than 0 to 1 or negative, with an average value of -0.26. The ISP value of East Java tobacco exports indicates that East Java Province tends to be an importer rather than an exporter and is in the import substitution stage. The need for large consumption should be met by domestic production to reduce tobacco imports due to the high comparative competitiveness of East Java tobacco in the international market.

On the revealed comparative advantages of Dutch cities

AbstractDavis and Dingel explain the distributions of skills, occupations, and sectors across cities. Their model predicts that larger cities will be relatively skill‐abundant and specialize in skill‐intensive activities. This relates the model to factor‐driven comparative advantages. They also develop an elasticity test and pairwise comparison test for the spatial distributional implications of the model. What is not analyzed, however, is the associated structure of trade flows. This next step—the analysis of the structure of trade—is the main contribution of our article. We combine micro‐economic data to analyze how the sorting process of factors of production across cities determines the revealed comparative advantage (RCA) distributions of Dutch cities. We find that (i) the sorting of factors of production across cities is consistent with Davis and Dingel, (ii) RCA patterns differ significantly across locations, (iii) RCA differences can be explained by the interaction of local skill‐abundance and sector skill‐intensity (in line with the factor abundance model), and (iv) the RCA analysis relative to the Netherlands mostly, but not always, coincides with that relative to the world.

Competitiveness of Indonesian ginger exports to Japan, Malaysia, and The United States

The purpose of this study was to determine the competitiveness of Indonesian ginger in Japan, Malaysia, and the United States by analyzing the level of competitiveness, competitiveness position, and concentration of Indonesian ginger exports to Japan, Malaysia, and the United States. The research method used is the descriptive quantitative method. The period under study is 2012–2019, or eight years. The data analysis methods used are Revealed Comparative Advantage (RCA), Trade Specialization Index (ISP), and Market Concentration Index (IKP). The results of the RCA analysis of the competitiveness of Indonesian ginger exports to Japan, Malaysia, and the United States in 2012–2019 have comparative competitiveness 1. The average RCA scores were Japan (0.20), Malaysia (0.95), and the United States (0.07), respectively. In terms of competitiveness, Indonesia is an exporter country because ISPs have an average ISP value, namely Japan (0.93) in the maturation stage, Malaysia (0.61) in the expansion stage, and the United States (1.0) in the maturation stage. For market concentration, Indonesia has a relatively low IKP value, namely Japan (0.000024), Malaysia (0.000132), and the United States (0.000002), with a trade intensity value of (0-1).

Static and dynamic RCA analysis of India and China in world economy

AbstractThis study is an attempt to examine similarities and differences in the patterns of revealed comparative advantage (RCA) of India and China in the global market at different levels of classification. The study analyses whether RCAs of these economies have undergone any structural shift/change or whether the pattern of specialization in these economies is competitive or complementary in the world market. The study reveals that India holds a comparative advantage in 9 out of 16 product groups of Harmonized System (HS) classification, 41 out of 97 HS chapters at HS 2‐digit level, and 2377 out of 4163 traded commodities at HS 6‐digit level, while China holds a comparative advantage in 6 out of 16 HS product groups, 45 out of 97 HS chapters at HS 2‐digit level, and 2075 out of 4381 traded commodities at HS 6‐digit level in 2018. Major findings suggest that both the countries have been performing well and broadly maintained their comparative advantage, especially since 2000. A comparative analysis of India and China reveals a small structural change in RCA over time in both economies at disaggregated levels. The study highlights that India and China neither have a competitive nor a complementary relationship in the global market. These findings reflect a scope of independent expansion of the economies of both India and China, without hurting mutual interest in the global market. It may be inferred from the results that mutual cooperation will enhance the competitiveness of both economies and contributes to global economic progress.

Competitiveness and Flow of Indonesian Paper Trade in The Global Market

Indonesia has the opportunity to increase the share of paper exports in the world due to the declining dominance of NORSCAN (North America and Scandinavia). The momentum is not only an opportunity for Indonesia, but also other paper exporters in Asia and Latin America. This research aims to analyze the competitiveness and determinants of Indonesia’s paper trade flow using secondary data in 2001- 2020 with 11 main export destination countries as objects using Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD) and Gravity models. The RCA analysis showed Indonesia’s paper has competitiveness in 11 export destination countries with diverse growth rates. This is in line with Indonesia’s paper market position as Rising Star in 5 countries which means that Indonesian paper commodities are in a market with high demand growth and market share. Gravity model estimates show that Indonesia and importers real GDP per capita, as well as the level of competitiveness positively affects Indonesia’s paper exports, inversely, export prices and dummy Technical Barrier to Trade (TBT) give negative impact. Based on these results, efforts to increase exports should be done by promoting paper to market with Rising Star and large economies such as China and USA as the priority choices.

Competitiveness of The Top 15 Main Export Destinations of Indonesia's Natural Rubber for 1991–2020

This study aims to analyze the position and performance of Indonesia's natural rubber exports in terms of the concept of comparative advantage in the market world. The data used in this study were sourced from UN Comtrade, which is processed with a 30-year data series (1991-2020) and is categorized into six periods. The analytical methods used are Structural Trend Ranking (STR), Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD), and X-Model. The results showed that 15 countries have consistently been the main Indonesian natural rubber market for 30 years. The RCA analysis showed that Indonesian natural rubber had strong competitiveness in all destination countries, except India in the first period. In contrast, the EPD analysis found that Indonesia's rubber market position was not always static and competitive. There was shown in the period 2011-2015, the average position of Indonesia's natural rubber market is in a market position that is not wanted to

COMPETITIVENESS OF INDONESIAN COFFEE EXPORTS TO JAPAN

The coffee market in Japan still has very high potential, as indicated by the increase in coffee consumption and Japan is one of the largest coffee consuming countries in the world. The increase in coffee consumption is due to changes in lifestyle in society due to westernization which introduces the habit of drinking coffee. The purpose of this study is to analyze and examine the competitiveness of Indonesian coffee exports to Japan. This research method uses quantitative methods. The type of secondary data is in the form of time series data for the period 1989 to 2018. The data source comes from the Directorate General of Plantations, United Nations Commodity of Trade. The analysis used was RCA (Revealed Comparative Advantage) and EPD (Export Product Dynamic) analysis. Vietnam as a comparison country in measuring RCA and EPD values. The results showed that Indonesian coffee beans had the ability to enter the Japanese market and were able to survive and export trade performance was fast and dynamic

Analysis of Export Competitiveness of Natural Rubber from Indonesia and Thailand in the International Market

Natural rubber is one of the commodities that plays an important role as a foreign exchange earner. This study aims to determine how the competitiveness of natural rubber in Indonesia and Thailand as the main producers in the world market. The data used in this study is the volume of exports and imports of natural rubber in Indonesia and Thailand for 15 years in the 2004-2018 period. This research uses Revealed Comparative Advantage (RCA) analysis to analyze comparative advantage and Trade Specialization Index (ISP) to analyze competitive advantage. The RCA analysis results in world markets, the United States market and the Chinese market show a number of more than 1 which means that natural rubber in Indonesia and Thailand have strong competitiveness or comparative advantage. However, in the world market and the United States market the value of the Indonesian natural rubber RCA index is higher than the Thai RCA index value so that the competitiveness of Indonesia's natural rubber is stronger than Thailand, while in the Chinese market the value of the Thai RCA index is the opposite. Indonesia and Thailand ISP Index values show positive results, indicate that these two countries have a tendency to be an exporter of natural rubber commodity in the world market, the American market, and the Chinese market.

Competitiveness of Indonesia's Fresh Lobster Market with China

Fresh lobster is a strategic fishery commodity for economic development because it has a fairly high selling value. However, the volume and value of exports from year to year tend to decrease, which amounted to 69899.7 US$ in 2013 decreased by 29425.6 US$ in 2018. Most of the exports of fresh lobster to China, namely the average export value per year during 2012-2018 67% of all Indonesian fresh lobster exports. Based on this, this study aims to analyze: (1) the competitive position of Indonesian lobster, (2) the factors that influence the competitiveness of Indonesian fresh lobster in the international market. The competitive position of Indonesian fresh lobster was analyzed using the Export Product Dynamic (EPD) and Revealed Comparative Advantage (RCA) approaches, the factors that affect the competitiveness of the model used by VECM (Vector Error Correction Model). Based on the EPD and RCA analysis, it can be shown that Indonesian fresh lobster has a comparative advantage in the China market. The factors that affect the competitiveness of Indonesian fresh lobster in the short term are the export price of fresh lobster from competing countries (Australia) to China, the population of China. Meanwhile, in the long term, the factors that influence competitiveness are the export price of Indonesian fresh lobster to China and the population of China.

Çelik Sektöründe Rekabet Gücünün Karşılaştırmalı Analizi: Çelik Üreten İlk 10 Ülke Örneği

Besides being one of the most developed sectors in Turkey, the steel sector is an important sector that contributes to the country's economy. In this study, it is aimed to analyze the competitiveness of steel exports of the top 10 steel-producing countries. In this context, the Revealed Comparative Advantage (RCA) index, the Revealed Symmetric Comparative Advantage (RSCA) index and the Trade Balance Index (TBI) were calculated. In addition, in this study, a production mapping was created by using the combination of TBI and RSCA index values of the top 10 steelproducing countries. Finally, the Comparative Export Performance Index (CEP) has been calculated for Turkey's exports of finished and semi-finished steel products to countries (China, India, Japan, Russia) that have a comparative advantage according to the result of RCA analysis. The findings obtained in the study show that Turkey is an important country in the world trade in the finished and semi-finished steel sectors. It has been observed that Turkey is in an advantageous position in every index calculated in the steel industry.

The competitiveness of Indonesia’s pepper export and its challenges

Indonesia is the second-largest pepper (Piper Nigrum L) producer country after Vietnam and followed by India, Brazil, and Malaysia. While Vietnam is the largest black pepper producer, Indonesia is recognized as the largest white pepper-producing country. With the increasing market competition among them in the international market, Indonesia has to increase the market competitiveness of its pepper exports against its competitors. This study aims to analyze the competitiveness of Indonesian pepper exports in the international market by using secondary data from various sources, including from the Indonesian Ministry of Agriculture and the International Pepper Community for the year 2018. It focuses on Pepper beans (HS 0900411) and Pepper Powder (HS090412) and uses two methods, namely Revealed Comparative Advantage (RCA) and Export Products Dynamic (EPD). The RCA analysis shows that Indonesia has a comparative advantage as a pepper exporter on the international market, both for pepper beans and powder. However, the results of the EPD analysis revealed that such an advantage is declining. For example, the study revealed that the export of pepper beans from Indonesia to the United Stated is in the lost opportunity position, and to Vietnam and Singapore are in the falling star position. A similar situation occurs for pepper powder where Indonesia’s export to Japan, Netherlands, and Germany are all in the falling star position. Such situations are caused by some challenges Indonesian pepper exports face, including the fulfillment of the good agriculture practices (GAP) in the upstream sector and compliance to international standards.

Prospects and Challenges of Indonesian Exports to Non-Traditional Market: Measuring The Competitiveness of Indonesian Products in UAE Market

The US-China Trade War and the COVID-19 pandemic are unprecedented incidents involving Indonesia's traditional markets as the main actors, i.e. the US and China which impacted Indonesia's economy and trade indirectly. Market diversification to new market or non-traditional market is one way out that can be done to minimize the impact of the global crisis on the country, when traditional markets are unreliable, such as the United Arab Emirates (UAE) that has made a positive contribution both in investment and trade for Indonesia in the midst of a pandemic. However, Indonesia's exports to the UAE experienced a significant decline in 2018 after previous two years continued to increase. So that knowing the competitiveness of Indonesia's export products in the UAE is the purpose of this study. This research answers the prospects and challenges of Indonesian export products in the UAE by measuring the export performance in 2016-2018 using the Constant Market Share (CMS) and Revealed Comparative Advantage (RCA) analysis methods. This research uses descriptive quantitative method with secondary data and triangulation of data sources, methods, and theories as the validity and reliability methods. The results of this study indicate that CMS and RCA analysis output are different so that the prospects and challenges for Indonesian products are also explained by the Indonesian approach and trade policies which lead to the conclusion that the UAE is a potential market to become non-traditional market for Indonesian economic development when its traditional markets are unreliable.

Analysis of Competitiveness and Factors Affecting the Level of Potato Export to Singapore and Malaysia

This study purpose to analyze competitiveness and the factors that influence the level of Indonesian potato exports in Singapore and Malaysia. The analytical method used in this study is the quantitative Revealed Comparative Advantage (RCA) method, Export Product Dynamic (EPD), and OLS analysis. The destination countries for potato exports in Indonesia are Singapore and Malaysia. This study uses annual time series data from 1989 to 2018. The results of the RCA analysis show that Indonesian potatoes have strong competitiveness in Singapore in 1999-2017, although in 1999-2003 the value of Singapore RCA was inferior to Malaysia. Whereas in Malaysia, Indonesian potatoes have strong competitiveness only in 1999-2006. The results of analysis of Indonesian potato EPD on the Singapore market are in a retreat position and Malaysia is in a lost opportunity position. The results of OLS analysis in both countries show that the variable that has a significant effect on the level of potato exports is the GDP of the destination country and the real exchange rate. While the price of exports only affects Singapore. This study purpose to analyze competitiveness and the factors that influence the level of Indonesian potato exports in Singapore and Malaysia. The analytical method used in this study is the quantitative Revealed Comparative Advantage (RCA) method, Export Product Dynamic (EPD), and OLS analysis. The destination countries for potato exports in Indonesia are Singapore and Malaysia. This study uses annual time series data from 1989 to 2018. The results of the RCA analysis show that Indonesian potatoes have strong competitiveness in Singapore in 1999-2017, although in 1999-2003 the value of Singapore RCA was inferior to Malaysia. Whereas in Malaysia, Indonesian potatoes have strong competitiveness only in 1999-2006. The results of analysis of Indonesian potato EPD on the Singapore market are in a retreat position and Malaysia is in a lost opportunity position. The results of OLS analysis in both countries show that the variable that has a significant effect on the level of potato exports is the GDP of the destination country and the real exchange rate. While the price of exports only affects Singapore.

한-중 ICT부품산업의 수출경쟁력 비교 분석

This paper used Market share (MS), Trade Specialization Index (TSI), Revealed Comparative Advantage (RCA), and Market Comparative Advantage (MCA) to analyze the export competitiveness of ICT parts industries in Korea and China. The results are as follows. First, the ICT parts industry is growing while global industrial exports are decreasing. Second, the market share of the ICT parts industry has changed from China > US > Korea > Japan > German to China > Korea > US > Germany > Japan. Korea’s market share in the US and China is decreasing. Third, according to the TSI analysis, Korea is specialized in exports in the World, US, Vietnam, China, and China are specialized in exports in the World and the US. Fourth, according to RCA (MCA) analysis, while China has a competitive advantage in the US, Korea has a comparative advantage in the World, Vietnam, and China. Korea has a competitive edge in the ICT parts industry in the World and Chinese market, However, Korea is between advanced countries with technology and China with improved technology, Therefore, necessary to come up with countermeasures.

Analysis of Indonesian Cocoa Product Competitiveness in European Market

The European Union is one of the most important and strategic markets for Indonesian cocoa exports. However, a market share of Indonesian cocoa products in this market is far less than production capability. Although the Indonesian government have developed a policy to increase the exports of cocoa related products, it should find out which cocoa products have competitiveness in the European market to determine the direction of cocoa export policy. The main interest of this study is to determine how competitive is the cocoa product and its derivative from Indonesia in European market compare to other cocoa-producing countries. We use the trade value of each commodity (cocoa beans, cocoa paste, butter, and powder) from Ivory Coast, Ghana, Ecuador, Nigeria, and Indonesia from 2000 to 2018. Then we compared them using Revealed Comparative Advantage (RCA), Constant Market Share Analysis (CMSA), and Export Product Dynamics analysis (EPD). The result showed that from RCA analysis, cocoa products and its derivatives from Indonesia have a competitive advantage except for cocoa Beans. However, it is lagging far behind other cocoa-producing countries. Furthermore, Indonesian cocoa products and derivatives continue to experience declining competitiveness in the European market. Using the constant market share analysis, we reach a similar conclusion except during the period from 2010 to 2015. Furthermore, the results of calculations using EPD show that in general, cocoa and derivative products originating from Indonesia in the European Market are not able to take the region's market share.

Brexit Damage Limitation: Tariff-Jumping FDI and the Irish Agri-Food Sector

Abstract A ‘hard Brexit’ would be particularly damaging to the Irish beef and dairy sectors. The UK also exports substantial amounts of these products to the EU however and the vacuum that restrictions on UK access to the EU market would create affords opportunities for Irish-based producers. The aim of the paper is to assess how these opportunities might be best exploited. The results of a revealed comparative advantage (RCA) analysis conducted using international trade data do not prove encouraging. RCA analysis however implicitly treats the stock of foreign direct investment (FDI) as given. Newspaper reports are drawn upon to detail the extent of precautionary ‘tariff jumping’ FDI already undertaken by Irish agri-businesses. These flows thus far have been almost entirely one-way. Flows in international financial services have been in the opposite direction. These asymmetries suggest that targeted efforts by Ireland's industrial development agencies may be able to offset some of the damaging consequences of a hard Brexit.