Trade Specialization Research Articles

INDONESIAN FISHERIES AND SPICES COMMODITIES IN THE UNITED STATES AND THE EUROPEAN UNION: RSCA AND URR ANALYSIS

Although Indonesia has potential in fisheries and spice commodities, Indonesia also faces challenges where food commodities including fisheries and Indonesian spices often experience rejection, especially from the United States and the European Union. On the other hand, with its potential, Indonesian fisheries and spices products are expected to have comparative advantages that result in improved quality of goods and services so as to provide higher competitiveness in international trade. This study aims to determine how the competitiveness and trade conditions of fishery commodities and spices from Indonesia to the United States and the European Union from 2015-2022. The analytical tools used in this study are Revelaed Symetric Comparative Advantage (RSCA) and Trade Specialization index (ISP) to analyze competitiveness while to analyze the reasons for rejection and its relation to the food quality of these commodities the Unit Rejection Rate (URR) analysis is used. From the research results, it was found that all Indonesian fishery and spice products traded to the United States and the European Union have a comparative advantage both in 2015 and in 2022 because they have an RSCA score above 0. While the URR value of Indonesian fishery and spice commodities to the United States and the European Union has also decreased, which means that the number of rejections is decreasing, and the quality of food quality is increasing.

Export Competitiveness Of Bananas (Musa) Indonesia In The Asean Market

The objectives of the study were to determine the export performance and analyze the comparative and competitive advantages of Indonesian bananas compared to competing countries in the ASEAN market. The study used time series observation data from various sources including FAOSTAT and Trade Map which ranged from 2012 to 2021. The analysis method in the research is using descriptive analysis, Revealed Comparative Advantage analysis, and Trade Specialization Index analysis. The result of the research is that Indonesian bananas have a lower export value compared to the Philippines, Malaysia and Vietnam. The Philippines is comparatively superior in banana exports to the ASEAN market, while Indonesia, Malaysia, and Vietnam have lower comparative competitiveness. The role in banana trade in the ASEAN market varies between countries. In banana trade, Indonesia and the Philippines are competitively superior countries with strong exporter values, while Malaysia and Vietnam are not competitively superior as they experience fluctuating values.

KINERJA DAYA SAING TEH HIJAU INDONESIA DI PASAR INTERNASIONAL

Tea commodity is one of the export commodities that can contribute to the Gross Domestic Product (GDP) of Indonesian plantations. Indonesia’s tea production fluctuates but tends to decline, resulting in declining tea exports. Indonesia’s tea production is dominated by 78% black tea, 20% green tea, and the remaining 2% other types of tea. Although green tea has lower exports than black tea, Indonesia’s green tea market share has a better market share. The purpose of the study was to determine the comparative and competitive competitiveness of green tea exports, as well as the position of Indonesia’s green tea export competitiveness (HS 090220) in the international market. The data used starts from 2011-2022 with 6 destination countries namely Poland, Germany, Taipei, Pakistan, Malaysia, and China. The analysis used is RCA (Revealed Comparative Advantage), EPD (Export Product Dynamic), and ISP (Trade Specialisation Index) analysis. The results of the analysis showed that Poland has the highest RCA value of 29.99 and followed by Germany, Taipei, Pakistan, and China which have strong competitiveness. While Malaysia has a weak competitiveness with an RCA value of 0.34. The results of the EPD analysis obtained that Poland is in the Rising Star position which means that Indonesian green tea has a competitive advantage and is experiencing a positive increase in market share, while China and Pakistan are in the Lost Opportunity position. Malaysia is located in the Retreat position, which means that Indonesian green tea does not have a competitive advantage, while Germany and Taipei are in the Falling Star position. ISP results obtained Indonesia as an exporter country and has a strong competitive position in Pakistan. Indonesia as an importer country and has a weak competitive position in China.

DETERMINANTS OF EXTERNAL ECONOMIC SECURITY OF UKRAINE IN 2010-2022

Objective. The objective of the present study is to analyze the level of economic security in general and foreign economic security of Ukraine in 2010-2021, in particular, to identify disincentive factors and stimulators of foreign economic security in 2010-2022. Methods. The following methods and techniques of cognition are applied: analysis and synthesis, induction and deduction (to justify the complementary relationship between economic and foreign economic security), analysis of series of dynamics (to identify the state and trends inherent in indicators of economic and foreign economic security of Ukraine), tabular (for visual presentation of factual data on the level and dynamics of economic and foreign economic security of Ukraine in 2010-2021 and 2010-2022, respectively ). Results. On the basis of the conducted study of the level of economic security in general and external economic security of Ukraine in 2010-2021, in particular, it is determined that during the period under the analysis, the level of economic security of Ukraine was on average 40%, foreign economic security – 35%, which corresponds to a dangerous state. At the same time, foreign economic security is proposed to be considered as the state of protection of the country's national economic interests in the field of foreign economic relations, which is based on the country's ability to ensure sustainable economic growth and increase the welfare of the population in the long term; protect their national resources and markets from external threats; influence world economic processes and defend their interests in the international arena. It is identified that the factors stimulating foreign economic security of Ukraine in 2010-2022 were: high level of openness of the economy; the specifics of export-import operations – the value of exports significantly exceeded the value of imports, a high level of focus on one geographical direction was observed – one foreign trade partner, one product; low level of processing of goods and specialization in trade in raw goods with a low level of processing; low level of utilization of the transit capacities of the gas transportation and oil transportation system; sufficiently high level of import dependence; insufficient level of diversification of the economy. It is determined that despite the lack of factors stimulating the country's foreign economic security during 2010-2022, the following positive trends are observed during this period: decrease in the openness of the national economy, decrease in the level of foreign trade dependence of Ukraine on leading partner countries, decrease in the level of dependence on export volumes countries from the leading product (product group).

Trade Specialization Dynamics in a Small Open Resource-Based Developing Economy: Empirical Evidence from Botswana

ABSTRACT We analyze trade specialization dynamics in Botswana, applying the Galtonian regression and Markov matrix on the Lafay index for the period of 1998 to 2019. Galtonian regressions reveal de-specialization – Botswana gained a comparative advantage in industries for which it was initially not specialized and became less competitive in industries for which it was initially specialized. The industry hierarchy was altered only slightly due to persistence in trade specialization patterns. The Markov matrix reveals stronger upward industry mobility than downward industry mobility. De-specialization suggests slow-paced economic diversification, induced by import substitution in de-specialized industries, rather than by an expanding export base.

중국과 미국의 첨단산업 국제경쟁력 분석에 관한 연구

Purpose - With the acceleration of scientific and technological progress and globalization, the competition in high-tech industry has become increasingly fierce, and China and the United States, as the world's two largest economies, have attracted much attention in the field of high-tech industry. This study analyzes the international competitiveness of high-tech industries targeting China and the United States. Design/Methodology/Approach - MS (Market Share) index, RSCA (Revealed Symmetric Comparative Advantage) index, and TSI (Trade Specialization Index) were calculated for nine high-tech industries in China and the United States. The analysis period was 2010, 2015, and 2020, and the analysis data used data from UN Comtrade and WDI industry statistics. Findings - The analysis shows that China has an advantage over the United States in the computer office machinery, telecommunications, electrical machinery, and chemical industries, while the United States has an advantage in the pharmaceutical, scientific instruments, non-electrical machinery, and military industries. In the aerospace industry, both the United States and China are inferior, but the United States appears to have an advantage over China. Research Implications - The competitive relationship between China and the United States in the field of high-tech industries not only affects the economies of the two countries, it also profoundly influences the world industrial structure and innovation. Therefore, an in-depth study of the international competitiveness of China and the United States in the field of high-tech industries is of great significance.

Growth, Export Performance and Trade Competitiveness of Lentil (Lens culinaris) From Nepal

The lentil (Lens culinaris) sector in Nepal has realized as an export potential commodity but lacks adequate trade related research and development. To study the growth, export performance and trade competitiveness of Nepalese lentil, secondary data pertaining for the period of 30 years (1990–2019 A.D.) were analyzed classifying as pre and post WTO period for Nepal. Compound annual growth rate (CAGR), Cuddy-Delle Velle instability index, export performance ratio, reveled comparative advantage (RCA), trade specialization and Herfindahl-Hirschman index were analyzed. The trend analysis showed highly fluctuation with the growth rate of 40.31 and 42.24 percent per annum has been noticed in import value and quantity respectively. Whereas; the export quantity is found negative growth of 0.43 percent and export value with the growth of 1.44 percent. High instability was found in all parameters of export and import and highest variation was noticed for pre-WTO period in comparison to post-WTO. Nepal enjoys relatively strong competitiveness in export of lentil with RCA value greater than 1. Trade specialization index fluctuated over the years, it remains in the stage of import substitution declining from growth stage and have witnessed positive direction to revive the lentil export performance from Nepal. Herfindahl-Hirschman index showed that the Nepalese lentil market for export is highly concentrated which can lead to high economic risks. Int. J. Soc. Sc. Manage. Vol. 11, Issue-(1-2): 7-16.

Analysis of Indonesian Cocoa's Competitiveness in the International Market

The cocoa commodity contributes the fourth highest national income after palm oil, rubber and coconut. The cocoa market has great potential as seen from the increase in world consumption, so Indonesia is expected to take advantage of the opportunities available. This study aims to analyze Indonesia's cocoa competitiveness in the international market with several countries that are the largest exporters of selected cocoa products in 2018-2022. The analysis methodology of this research measures the competitiveness of commodities in the global market using a mathematical framework. The analysis is used to process quantitative data. Revealed Comparative Advantage (RCA) is used to determine the competitiveness of Indonesian cocoa in the international market. Index of Trade Specialization (ISP) analysis was then conducted to determine the competitiveness position. The results of the RC? analysis show that Indonesia's competitiveness is strong for the commodities of cocoa paste, cocoa fat and cocoa powder, while the cocoa beans are still weak. The results of the ISP calculation for 2018-2022 show that Indonesia is an exporting country for k?k?o paste, k?k?o fat and k?k?o powder, while for k?k?o seeds Indonesia is an importer

MEASURING THE COMPARATIVE AND COMPETITION OF INDONESIAN WOOD CHARCOAL EXPORTS IN THE SAUDI ARABIAN MARKET

Objective: This study examines the comparative and competitive export of wood charcoal in four potential countries, namely Indonesia, Malaysia, China, and Vietnam, in the Saudi Arabian Market with HS Code 4402. This study used annual data for nine years from 2014 - 2022, divided into three periods. Method: This study used the Herfindahl-Hirschman Index (HHI) and concentration Ratio (CR), Revealed Symmetric Comparative Advantage (RSCA), Export Product Dynamic (EPD), X-Model, and Trade Specialization Index (ISP) models to measure the wood charcoal industry in the Saudi Arabian Market. Result: The findings show that wood charcoal market in Saudi Arabia exhibits a strict oligopoly structure, with Indonesia and China dominating the market share. Indonesia emerged as the top supplier of wood charcoal to Saudi Arabia during for nine years. Malaysia showed the highest competitiveness among potential countries in certain periods. Overall, Indonesia, China, Vietnam, and Malaysia demonstrated strong competitive positions, with dynamic export growth, positioning them as "Rising Stars" in the market. These countries specialized as wood charcoal exporters to Saudi Arabia, reaching a mature stage in their market presence during the analyzed period from 2014 to 2022. Conclusion: This study concludes that Indonesia became the highest supplier with a market share of 53.51% and had a strong comparative advantage. Malaysia has the highest optimistic market development, followed by Indonesia, Vietnam, and China. Indonesia's wood charcoal competitiveness position remains in the Rising Star position. The Trade Specialization Index of four potential countries at this stage of maturation.

Brexit: Trade Diversion due to Trade Policy Uncertainty

AbstractThe paper quantifies how much of the reduction in Spanish trade flows with the UK after the 2016 Brexit referendum was diverted to other markets. To obtain reliable estimates of trade diversion we regress firm‐level changes in flows with all markets except the UK on changes in flows with the UK. In order to solve the positive correlation of trade flows between different markets we use the Brexit referendum as part of our instrumental variable. We then treat firms as units subjected to differential uncertainty shocks according to their initial patterns of sector and trade specialization. In particular, the referendum date is interacted with potential sectoral tariffs and pre‐referendum firm‐level exposure to the UK. The paper shows a close to full trade diversion for exports, mostly to other European countries, for those firms more exposed to that particular market (above 10%) and a heterogeneous response on the part of Spanish firms with low exposure (below 10%). Trade diversion for imports is weaker but the results are less robust. Given a particular share of exposure to the UK market, trade diversion appears to be more limited for big companies in comparison to small companies.

Analysis of the Competitiveness of Indonesian Rubber Exports in International Markets

Indonesia's position as one of the largest rubber producing countries in the world does not make Indonesia a major rubber exporter on the international market. This research aims to analyze comparative competitiveness, competitive competitiveness and specialization of Indonesian rubber trade in the international market. The research methods used are Revealed Comparative Trade Advantage (RTCA), Export Competitiveness Index (XCi), and Trade Specialization Index (ISP). This research uses secondary data for the 2012-2021 period obtained from the Food and Agriculture Organization (FAO) and processed using Microsoft Excel tools. The research results show that Indonesian rubber commodities do not have comparative competitiveness, competitive competitiveness and trade specialization as a rubber importer in the international market. RCTA analysis shows an average value of -1.187 placing Indonesia in fourth position among other competing countries. XCi analysis shows an average value of 0.817 making Indonesia the country with the lowest competitiveness compared to other competing countries. ISP analysis shows that Indonesia tends to be a rubber importer with an average value of -0.573 and is at the import substitution stage.

How dental wear can tell us about the lifestyles and trade specialization of the Philistine populations in the Iron Age Levant

How dental wear can tell us about the lifestyles and trade specialization of the Philistine populations in the Iron Age Levant

우리나라 무역수지를 활용한 국제경쟁력 변동요인에 대한 연구

Purpose - Although the industrial importance of the copyright is increasing, and its significance is being highlighted both domestically and internationally, statistics related to copyright are still insufficient, resulting in a lack of research in this field. In this study, we examine the characteristics of the import-export structure through trends in South Korea’s copyright industry trade balance.
 Design/Methodology/Approach - In order to confirm the potential of Korea’s copyright industry as a growth engine in the global market between 2010 and 2021, indicators such as the Trade Specialization Index (TSI), Contribution to the Trade Balance (CTB), and Intra-Industry Trade Index (GL Index) were used to determine Korea’s level of international competitiveness in the copyright industry, which was objectively identified.
 Findings - In the Trade Specialization Index (TSI), the copyright industry shifted to export specialization in 2015, and in the Contribution to Balance of Trade (CBT), the competitiveness of the copyright industry was strengthened from a comparative disadvantage industry to a comparative advantage industry. In the GL Index, the proportion of intra-industry transactions in the copyright industry increased from 2010 to 2021.
 Research Implications - It can be seen that tailored strategies by country and genre are necessary to activate the copyright industry. Despite high market potential in all countries due to the spread of K-culture, it is necessary to provide characteristics and support measures tailored to each country through clear comparisons and evaluations.

COVID-19 시기에 한국, 미국, 중국과의 서비스 무역 경쟁력 분석에 관한 연구

In this study, Revealed Comparative Advantage (RCA), Symmetric RCA, Trade Specialization Index (TSI) were used to analyze the service trade competitiveness of Korea, China, and the United States. As a result of the analysis, first, Korea is at a comparative disadvantage as most RCA index values are less than 1 and most SRCA index values are measured as negative numbers (-), Korea was found to be less competitive than the United States and China. Second, looking at Korea's global TSI index, it can be seen that Korea is closer to import specialization than export specialization due to its overall lower competitiveness compared to the United States and China. Accordingly, in order to strengthen Korea's service trade competitiveness, financial support strategies for service export companies and the K-content export base must be strengthened. And there is a need to create an export investment fund to foster global companies and develop policies to strengthen the competitiveness of the tourism sector.There is a need to foster promising items related to software (SW) and information and communication technology (ICT), deregulation and branding are needed to revitalize medical service exports.

Factors of foreign trade resilience on the example of the North Europe countries. Ability to recover

The article analyses the factors of foreign trade resilience of countries, as well as makes their quantitative assessment on the example of the North Europe countries. These factors are divided into two large groups: reflecting the country's resilience and characterising its ability to recover. The factors described in this article are divided into congenital and acquired. This article is devoted to the analysis of only those factors that characterise the ability to recover. Mutual trade dependence and flexibility of the structure of the economy of the exporter's home region are identified as innate. And as acquired - diversification of trade relations, redundancy in the trading network, its modularity. Indicators to help characterise these factors are calculated for the North Europe countries. As a result, a picture of foreign trade resilience was obtained in terms of the ability of these countries to recover after shocks. The import and export positions of Finland, Sweden and Denmark in this regard turned out to be quite strong. This situation has become possible due to their wide specialisation, high diversification of trade networks, as well as the high redundancy of the EU-27 trade network. The situation in Norway and Iceland appeared to be less stable due to the fact that they have a pronounced foreign trade specialisation. These factors should theoretically contribute to a relatively high rate of recovery of foreign trade of the country in question after shocks. This was confirmed by the correlation coefficient calculated for them and the elasticity of a foreign trade.

한국 중고차의 수출경쟁력에 관한 연구

Purpose - For the sustainable trade of the global society, trade phenomena related to the trade of used commodities were analyzed. Used cars are older than new cars, so they are of lower quality and have a lower market value. This makes them a challenging area of research, as there is a lack of prior research.
 Design/Methodology/Approach - From the perspective of environmental conservation and resource conservation, there is a need for research on the export of used cars as a form of resource recycling. The trade phenomenon was analyzed using K-Stat and UN Comtrade Statics data.
 Findings - Used goods trade does not occur only in developing countries, and it is used frequently in developed countries as well. We find a very strong positive correlation between used car exports and new car exports. According to the Trade Specialization Index, used cars have an absolute export competitiveness advantage, even though new cars have low export competitiveness. This suggests that used cars complement new cars in the export market.
 Research Implications - The present study was challenging to undertake due to the fact that it was conducted in the field of used goods, which made it difficult to obtain prior studies and public data. However, the used car sector, a significant component of Korean automobile exports, has been validated as an export product that is competitive with developed countries.

Export Competitiveness of Indonesian Copra in International Trade 2017-2021

Indonesia is the main coconut-producing country in the world. One of the coconut derivative export products is copra. In 2019, the volume of Indonesian copra exports was 154 thousand tonnes, then fell to 107 thousand tonnes in 2020 and decreased to 39 thousand tonnes in 2021. This research will identify the competitiveness and specialization index of the Indonesian copra trade. The data used in this research is secondary data in the form of time series (cross-section) from 2017 to 2021. The data was analyzed using Revealed Comparative Advantage (RCA) analysis and the Trade Specialization Index (TSI). The data processing was carried out using the Microsoft Excel 2019 program. The research results explain that the RCA value of the Indonesian Copra Commodity in 2017-2021 is between 28.16 and 48.80, with an average RCA of 41.55. RCA >1 means that Indonesian copra commodities have high competitiveness in the international market. And higher than the RCA countries of Malaysia, India and Guatemala. Indonesia's TSI during the 2017-2021 period was 0.97, and This indicates that the Indonesian copra commodity has strong competitiveness as an exporter of copra commodities.

Export Competitiveness Analysis of Pepper (Piper Nigrum L) Commodity in the International Market

Indonesia is popular as a country relying on the agricultural sector as livelihood and a backbone to support the national economy. One of the current challenges pepper producers encounters is increased competitiveness between producing countries. This increased competitiveness is reflected in the more considerable global pepper production growth than in export growth. This study aims to analyze (1) comparative competitiveness, (2) competitive competitiveness, and (3) trade specialization index. This study used time series secondary data from 2006 to 2020. The study employed an RCA to analyze comparative competitiveness, an EPD to analyze competitive advantage, and an ISP to analyze whether Indonesia tends to be an exporter or importer of pepper commodities. The research results showed that Indonesia, Vietnam, and Brazil are essential in the world pepper trade. The results of the calculation of the RCA index for the 2006-2020 period include that Indonesian, Vietnamese, and Brazilian peppers have a comparative advantage or strong competitiveness in the international market because the RCA value is > 1. Indonesian and Brazilian peppers are in the Rising Star position, indicating that these two countries have a comparative advantage and a competitive advantage. Meanwhile, Vietnam is in a lost opportunity position. The ISP values for Indonesian, Vietnamese, and Brazilian pepper have an average of 0.72, 0.82, and 0.77, respectively. This showed that these three countries have competitive solid capabilities or tend to become pepper-exporting countries.

Dynamics of Trade Specialization and Performance of SAFTA: A Case Study of Afghanistan

The idea that regional integration is the podium of economic growth dates back a long time. Even now, a plethora of literature confirms a strong and positive link between regional integration and economic growth. However, most of these studies are focused on developed countries. Indeed, literature from developing countries is scant, and that from underdeveloped and landlocked countries like Afghanistan is almost non-existent. In the context of South Asian Free Trade Agreement, this article endeavours to innovatively scrutinize the trends in exports, imports and trade at different industry levels in the trade specialization of Afghanistan. At the harmonized standard 6-digit level of product classification, the study has employed the Lafay Index approach. The study finds that Afghanistan has a greater affinity for resource-intensive manufacturing products and non-fuel primary commodities. The study suggests that Afghanistan should confront issues such as its trade deficit, its dependency on agricultural products for export and the underutilization of its natural resources. The results show that Afghanistan still has a competitive disadvantage over South Asian Association for Regional Cooperation (SAARC) members at different industry levels. The study recommends dealing with problems including technology diffusion, product diversity and quality sophistication at various industrial levels, which restrict a higher degree of trade specialization. JEL Codes: F1, F10, F14

Daya Saing Biji Kakao di Pasar Malaysia

Di pasar Malaysia, biji kakao Indonesia bersaing dengan biji kakao dari negara-negara di Afrika Barat yang memiliki standar kualitas yang tinggi dan lebih disukai oleh konsumen. Tujuan dari penelitian ini adalah untuk mengetahui nilai ekspor, produksi, produktivitas kakao, posisi perdagangan dan daya saing biji kakao Indonesia dengan pesaingnya di negara-negara Afrika Barat (Pantai Gading, Ghana, dan Nigeria). Metode penelitian ini menggunakan Trade Specialization Index (TSI), Revealed Comparative Advantage (RCA), Export Product Dynamics (EPD), dan X-Model. Data yang digunakan adalah dari tahun 2000 - 2020. Hasil penelitian menunjukkan bahwa posisi perdagangan biji kakao di Indonesia, Pantai Gading, dan Ghana berada pada posisi pertumbuhan ekspor (nilai TSI meningkat antara 0-1). Sementara itu, Nigeria berada pada posisi kematangan ekspor (nilai ISP menurun antara 0 - 1). Rata-rata indeks RCA biji kakao: a). Indonesia = 3,92 ; b). Pantai Gading = 1,44; c). Ghana = 7,28; dan d). Nigeria = 173,13. Berdasarkan hasil EPD, Indonesia berada di posisi Lost Oppurtunity, Pantai Gading di posisi Falling Star, Ghana di posisi Retreat, dan Nigeria di posisi Rising Star.