Trade Specialization Research Articles

ANALISIS DAYA SAING EKSPOR KOPI INDONESIA DI PASAR DUNIA

This journal contains an analysis of the competitive advantages of coffee from 2015-2020 by comparing Indonesian coffee as one of the main exporting countries with several other main exporting countries such as Brazil, Colombia, Vietnam and Ethiopia. This journal uses 2 analytical tools, namely the Trade Specialization Index (ISP) and Revealed Comparative Advantage (RCA). Data collected and processed from several sources including the Badan Pusan Statistik (BPS), International Coffee Organization (ICO) and Trade Statistics for International Business Development (TradeMap). Based on the results of the analysis calculation, the Trade Specialization Index (ISP) value for Indonesian coffee commodities shows results ranging from 0 to 1. This indicates that Indonesia has competitiveness and tends to be a coffee exporting country. Based on the results of Revealed Comparative Adventage (RCA) it can be seen that Ethiopia has the highest RCA score so that Ethiopia has a comparative advantage in all periods followed by Colombia, Brazil, Vietnam. While Indonesia is ranked fifth. Indonesia has to face strong competition between Brazil and Colombia in the international market. What's more, 90% of coffee exported abroad is in the form of green coffee which is of low quality. This causes Indonesia to get lower prices compared to other countries

Deliver Smart, Not More! Building Economically Sustainable Competitiveness on the Ground of High Agri-Food Trade Specialization in the EU.

Competitiveness has always been a multifaceted illusive concept, which has made it a real challenge for scholars and practitioners to find the most suitable measurement tools to completely encapsulate all the complex nuances of competitiveness. This becomes even more of a challenge when approached in relation to particular economic sectors. The agri-food sector is no exception, especially when considering all its interconnections with the other sectors: water, energy, transport, waste. All of them impact the achievement of the Sustainable Development Goals (SDGs). Similarly, scholars have been debating the meaning of sustainability for decades, some even arguing that it is a political, subjective, and, in some cases, self-contradictory concept. As far as the sustainability of agricultural competitiveness is concerned, the literature is still developing. It is much more focused on fostering environmental competitiveness, and less attention was paid to the strategies designed to capitalize on sustainable economic competitiveness-a concept that has attracted divergent opinions in the literature, mainly due to ambiguity. Thus, instead of falling into the pitfall of vagueness, this paper was aimed at bringing its contribution to this field by undertaking the research objective of exploring a single facet of sustainable agricultural competitiveness: the economic facet. Hence, this paper proposes the construction of the sustainable economic competitiveness index (SECI) with direct application for agri-food value chains. It consists of three attributes: (a) factor endowments, resource independence; (b) agricultural chain performance; and (c) national agricultural chain strategies and policies. In this study, SECI was tested against the cereal chain for a selection of EU countries, based on the data taken over from FAOSTAT and INTRACEN Trade Map, in the case of the 2011-2020 period. Various statistical and econometric methods were used to test the robustness of SECI. Results stand as proof that building sustainable agricultural economic competitiveness relies on a mix of strategic actions. The key vector in this mix is that trade flow patterns and policies must be calibrated in accordance with national factor endowments in order to achieve high levels of SECI. To add more managerial implications, this paper argues for the smart delivery of agri-food products with high added value instead of focusing on exporting big volumes of raw agricultural materials with little added value.

Izvozna konkurentnost i komparativna prednost Republike Srbije

The paper deals with the analysis of Serbian export competitiveness, i.e. the identification of comparative advantages and the degree of specialization in international trade from 2011 to 2020. The Standard International Trade Classification (SITC Rev. 4) was used to classify the sectors. Results were obtained by calculating the RCA, RSCA and TSI indices and constructing a competitiveness matrix. The results show that Serbia achieves comparative advantages in several industries, but their export share in total exports of Serbia is extremely low. On the other hand, in most sectors, which dominate in total exports with their share, there is no comparative advantage. Also, the results of the TSI are discouraging and show that Serbia does not specialize in exports or that its economy is predominantly dependent on imports. In addition, the competitiveness matrix, which presents export growth rates in Serbia and the world, shows that all sectors are promising and have accelerated growth. Based on the analysis of all indicators, it was concluded that Serbia has low export competitiveness with the identification of industries that have the potential for improvement.

ОСОБЛИВОСТІ СПЕЦІАЛІЗАЦІЇ У СИСТЕМІ ГЛОБАЛЬНОГО РИНКУ МОРСЬКОЇ ТОРГІВЛІ

In modern conditions of formation of parameters of the market of sea trade, besides standard laws of development, there are new external features of positioning of shipowner's subsystems. This significantly complicates the formation of the necessary quantitative and qualitative parameters. A distinction should be made between traditionally formed forms of specialization in maritime trade and the formation of new trends in the development of innovative technologies for servicing world trade flows. In fact, one of the forms of specialization in the world economy should include the priorities of a number of maritime countries, namely the emphasis on the national maritime transport industry. A distinction should be made between forms of specialization in terms of the legitimacy of the participation of alternative subsystems of the global maritime trade market. A special place in this process is occupied by regional transport structures. That is why normal maritime states, even with the minimal role of the national fleet, pay special attention to the development of seaports. There are problems in the system of the maritime trade market due to the expansion of the sanctions confrontation, which arose due to economic and political factors. That is, in the system of market relations there was a special factor of imbalance. The development of specialization leads to the formation of a number of economic advantages, which, in accordance with economies of scale, can lead to both an oversupply and monopoly regulation of the transport services market. As the experience of China shows, in case of exit of production from local markets, diversification occurs in the system of traditional specialization and distribution of product flows. The market becomes a regulator of production only to a certain extent. Imbalance problems accumulate as factors and advantages increase. Strategic decisions in the field of priority specialization and focus on innovative technologies become fundamental. At the same time, it is necessary to take into account possible and necessary integration development projects. It is indicated and determines the directions of improvement of managerial decisions from three development problems: maintaining a position on the global transport market, maintaining macroeconomic significance and business efficiency.

Evaluation of foreign trade specialisation and competitiveness of the Slovak economy

This paper aims to assess the structure of foreign trade specialisation and the character of trade competitiveness of the Slovak Republic as a member state of the European Union in the period 1999- 2021. We apply an industry specific classification using the concepts of the revealed comparative advantage and the revealed price elasticity. This allows us to evaluate the competitiveness and divide the product groups into price and quality sensitive. The findings confirmed that Slovak production is competitive on the European market in several industries, mainly in automotive production, electronics, and iron and steel, with external competitiveness being based on tradition and low costs resulting in lower prices. The structure of competitive exports changed over the analysed period, and we can note a slight shift from price-to quality-based competitiveness.

코로나19로 인한 한국의 무역구조 변화에 관한 연구

Purpose: The COVID-19 pandemic was not a problem in any particular country or a microscopic problem limited to any one field. Human beings around the world have faced the risk of infectious diseases and all countries around the world have implemented policies to respond to them. This study attempted to respond to changes in the international trade environment in the post-COVID-19 era by realistically and objectively grasping and analyzing the product trade structure after COVID-19.
 Research design, data, methodology : Commodity trade conditions and trade patterns due to the COVID-19 pandemic were analyzed, and how these various situations due to COVID-19 affect the trade structure were analyzed.
 Results : As a result of the analysis of the trade structure caused by the COVID-19 pandemic, it shows a different market share, trade concentration index, and trade specialization index than before the pandemic. This phenomenon is generally seen in countries such as China, the United States, Vietnam, Japan, India, and Singapore, which are major trading partners of Korea.
 Conclusions : As the export specialization of machinery and electrical equipment, Korea's main export items, is decreasing, it is necessary to accurately identify the causes and reasons of the weakened product line at the corporate level and establish a response strategy. In addition, it is necessary to establish various support measures to strengthen Korea's export competitiveness in preparation for the post-COVID-19 era.

Will the EU Taxonomy Impact the Trade Specialisation of European Economies?

Abstract The introduction of the taxonomy will alter trade patterns and trade specialisation, in spite of the signs that EU members are specialised in industries and economic activities that are favoured by its introduction. The taxonomy is likely to further work not only directly but also through supply chains, as obtaining more attractive funding for companies is indirectly linked to the compliance of the company’s suppliers as well. However, managing the transition to green production will require further policy measures at the regional, national, and international levels. Given that several policy measures and initiatives are already in place, doubts can be raised as to whether the green transition can be achieved efficiently by the introduction of the taxonomy.

Analisis Posisi Komoditas Jahe Indonesia di Pasar Internasional

Indonesia ranks fifth for the world’s most significant ginger production in 2020 after India, Nigeria, China, and Nepal. However, this does not make Indonesia a major ginger exporter in the international market. This study analyzes the position of Indonesian ginger in the global market compared to its competitors based on comparative advantage, competitive advantage, and trade specialization. The research methods used Revealed Comparative Trade Advantage (RTCA), Export Competitiveness Index (XCi), and Trade Specialization Index (ISP). The data used in this study is secondary data for the period 2006-2020 obtained from the Food and Agriculture Organization (FAO) with item code 720 (ginger), which consist of the export and import value of ginger from the country concerned, the export and import value of world ginger, and also the export and import value of all goods from the country affected. The result showed that the Indonesian ginger commodity has comparative competitiveness, competitive competitiveness, and trade specialization as an exporter of ginger in the international market. RCTA analysis shows an average value of 0,538, making Indonesia the country with the lowest comparative competitiveness among other competitors. XCi analysis indicates that Indonesia has the highest competitive competitiveness compared to its competitors, with an average value of 1,351. ISP analysis shows that Indonesia tends to be an exporter of ginger with an average value of 0,29 and is in the growth stage. Indonesia has the potential to develop the competitiveness of ginger exports in the international market by optimizing the utilization of existing resources and improving the quality of ginger. The competition for ginger exports in the global market is currently very tight, so for further research, it is recommended to analyze non-traditional markets that can be used as a potential to develop the Indonesian ginger export market.

The Effectiveness of Fabric Safeguards in Protecting and Improving the Indonesian Textile Industry Competitiveness

This study investigates the effectiveness of fabric safeguards set by the Indonesian government on protecting and improving the competitiveness of the textile industry in the domestic and global markets. Data on exports and imports of 107 HS codes of fabrics subject to additional import duties in 2011-2020 are used to measure Indonesia's competitiveness compared with six major exporting countries. The Revealed Comparative Advantage (RCA) and the Trade Specialization Index (TSI) interpret the Indonesian fabric competitiveness and its competitors. Independent variables of this research are Safeguard Measure Import Duty (BMTP), Most Favoured Nation (MFN) rates, period of investigation, exchange rate, and inflation. The results show that the safeguard, MFN, and period of investigation significantly affect the decline in fabric imports, but other variables have no significant effect. The regime effectively protects Indonesia's textile industry, which is marked by a decrease in the value and volume of imports during the validity period. The RCA indicates that Indonesia does not have a comparative advantage, and according to the TSI, Indonesia is an importing country. BMTP cannot change Indonesia's position as a net exporter and improve its competitiveness. This study implies that it is necessary to increase investment in more efficient production machines with high productivity, optimize the supply chain, reduce production and enterprise costs, and restructure business models; thus, their competitiveness increases in domestic and foreign markets. Keywords: BMTP, fabric, comparative advantage, trade index, impor duties

Apakah Nikel Indonesia Memiliki Keunggulan Daya Saing di Pasar Internasional?

International trade is one of the fundamental ways to overcome the unequal distribution of goods or services to meet each country's needs. Nickel is a non-renewable natural resource, but its existence is always needed in various countries. Indonesia's decision to ban nickel ore in 2014 impacted the scarcity of nickel in importing countries. This study aims to analyze the competitiveness of Indonesian nickel ore commodities in the international market. Three variants of the approach in the form of X/M Ratio analysis techniques, Revealed Comparative Advantage (RCA), and Trade Specialization Index (TSP) are used to determine the value of competitiveness in the global market. This study uses secondary data in the form of time series data with a span of the last five years to describe the comparative advantage of Indonesian nickel ore from time to time. Meanwhile, in 2016 and 2020, it did not have an advantage due to the export ban policy by the Indonesian government. The Trade Specialization Index (TSP) approach found that in 2017, 2018, and 2019 Indonesia was at the stage of maturation of nickel ore exporters. This study suggests that the Indonesian government should optimize the production of nickel ore products that have been added to compete in the global market. Furthermore, the government must also be able to attract foreign investment to establish an iron ore smelter in Indonesia.

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).

Indonesian Market Concentration on The Non-Oil and Gas Commodity Before and During Covid-19 Pandemic

The economic growth of a country is inseparable from the balance of trade, mainly the export and import activity. Globalization urges a country to actively socialize and provide infrastructure and facilities to support productivity and improve competitiveness in the international market. Increasing commodity export value affects the balance of trade to reach surplus, and increasing import value causes the balance of trade deficit. This study aims to analyze Indonesia’s non-oil and gas commodity market concentration. Trade Specialization Ratio (TSR) result shows a tendency for Indonesia’s non-oil and gas commodities to be both exporters and importers before and during the COVID-19 pandemic. The strategic plan to increase the product competitiveness in the international market can be in the form of increased productivity and quality; cooperating with several parties such as central and regional government, private parties, and also the general public in the planning for differentiating products and export destination, compliance with international product certification standard, tariff policy, and strengthening the economic institutions within the trade activity. Those efforts are taken to achieve national economic growth and decrease regional economic disparities.How to Cite:Yuliati, L., Komariyah, S., Adenan, M., & Prianto, F. W. (2022). Indonesian Market Concentration on The Non-Oil Gas Commodity Before and During Covid-19 Pandemic. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 289-298. https://doi.org/10.15408/sjie.v11i2.24678.JEL Classification: F10, Q20, C40

ДИВЕРСИФИКАЦИЯ РОССИЙСКОГО ЭКСПОРТА: РЕГИОНАЛЬНЫЙ АСПЕКТ

The task of overcoming the country’s raw material specialization in international trade is the most important in the current economic situation. For a long time, Russia’s place and role in the world market were determined by the export of energy resources. The deterioration of the situation in the fuel and raw materials markets in recent years, associated with unfavorable price dynamics, the introduction of new principles of energy consumption in Europe and the world, quantitative restrictions on the import of Russian products emphasize the urgency of reforming the export structure of foreign trade of the Russian Federation and increasing the importance of non-primary non-energy exports in it. At the same time, the growth of exports of domestic nonprimary goods to world markets is significantly constrained by the intensification of competition and the strengthening of protectionist tendencies. In these conditions, the policy of the state in the field of support of national exporters in order to ensure the competitiveness of their products is of no small importance. Export promotion services from the state are widely used in world practice, national integrated systems are being formed to assist exporters at all stages of the implementation of transactions. The article offers an analysis of the main directions of the Russian state policy aimed at increasing the share of processed products in the foreign trade of the Russian Federation. The author characterizes the commodity groups that form the basis of the country’s non-energy exports and its regional specifics. The largest partner countries of the Russian Federation in the trade of non-primary goods have been identified. The prospects and directions of development of Russian non-resource exports are analyzed.

Indonesian Coffee at The International Market

The research was conducted to know the competitiveness of coffee in the international market both comparatively and competitively. Measuring the strength of competitiveness in this study was conducted based on comparative analysis (analysis of RCA index, Herfindahl and CR4 Index, and Trade Specialization Index / ISP) and to analyze the competitive advantage of Indonesian coffee (Berlin Porter'/ Porter's Diamond Theory theory) to see the demand and supply side of the market. The results of this study revealed that the competitiveness of Indonesian coffee is very strong supported by the average RCA value of 4.08, the Herfindahl Index which shows free competition and reveals that the market ratio includes low market concentration and Indonesia based on the Market Specialization Index including exporting countries.

해외직접투자와 기술수출에 관한 연구

The paper puts an in-depth study on Korea's technology trade competitiveness with Vietnam, Korea's No. 1 foreign direct investment and the No.1 technology trade surplus country. In addition, it investigates the impact on technology exports according to the type of investment and the purpose of investment in Vietnam when making foreign direct investments. The trade specialization index was used as an analysis tool to analyze the technology competitiveness of specific industries, and multiple regression analysis was applied to examine the causal relationship between foreign direct investment and technology exports by its type and purpose.
 Firstly, a result of the analysis of the trade specialization index reveals that Korea's technology competitiveness with Vietnam was high across all industry sectors. Still, the technological competitiveness of the apparel, accessories, and fur industries is weakening every year.
 Also, Korea's technological competitiveness with Vietnam continues to decline in non-metallic minerals and basic etals from the material industry, which is the basis for high-tech sectors such as the semiconductor industry. On the other hand, a result of regression analysis suggests that the technology exports from Korea have increased in the form of joint investment and decreased when Korean companies invested with the aim of cost reduction when entering the Vietnamese market.
 This study identifies Korea's strong technology competitiveness with Vietnam in each specific industry, but the competitiveness has been weakening in some industries like apparel and material industries. It is also significant in that the impact on domestic technology exports varies depending on the purpose and type of foreign direct investment in Vietnam. It affects Korea's technology exports accordingly.

Does intra-industry specialisation enhance or limit comparative advantage? Evidence from the world citrus fruit trade

In this paper, we aim to identify the intensity and nature of intra-industry specialisation in the global trade in citrus fruits. We used data from the United Nations Comtrade database. We performed both static and dynamic assessments of the intensity of intra-industry trade (IIT) by using the traditional Grubel-Lloyd index and the marginal IIT (MIIT) index, respectively. We also separated IIT into horizontal and vertical trade, and we verified the relationship between changes in the intra-industry pattern of trade and the level of comparative advantage gained by the largest producers and exporters of citrus fruits in the world. We used the revealed symmetric comparative advantage (RSCA) index to evaluate the level of international competitiveness. Conducting these analyses allowed us to fill the existing research gap by identifying the nature of IIT in products with specific quality characteristics but at a lower processing stage. The study's results indicated that the stronger the IIT or the more intensive shifts toward deepening the intra-industry specialisation, the lesser the comparative advantage of a country in the global export of citrus fruits. Nevertheless, the increased intensity of intra-industry specialisation does not always lead to a deterioration in the value of the trade balance.

US Trade Policy With China: Proposing A New Framework for US Economic Competitiveness

Due to the Biden Administration’s decision to uphold a large majority of the Trump administration’s protectionist trade policies, US manufacturing industries are failing to control the market share. This paper explores the proper solutions that need to be taken to restore US competitiveness with China, prioritizing US cooperation with allies and China instead of unwarranted tensions. This paper analyzes the effects of US tariffs on Chinese imported goods on Foreign Direct Investment (FDI) in the US, US Gross Domestic Product (GDP), US manufacturing wages, and overall US manufacturing costs to argue that key US tariffs on Chinese imports should be eliminated. This paper explores the benefits of trade specialization and its effects on the US’s Revealed Comparative Advantage (RCA) to argue that the US should champion free trade policies such as revitalizing the Trans-Pacific Partnership (TPP). Finally, this report recommends that the US kickstart wholesale WTO reforms that change the process by which member states identify as “developing” or “developed” nations, and institute stricter litigation statutes against Chinese WTO violations.

The Discrepancy between Microchip Production and Automotive Industry born in Covid Pandemic Period 2019-2022

During the Covid-19 pandemic period the tiny particles - the microchips proved to be in high demand by various industries – from IT to the production of simple consumer goods. Main objective of this analysis is to explain the reasons for the shortage of chips and semi-conductors for the automotive industry as the auto maker resumed their activities after the lock downs. Haltering of orders by the major auto producer and rerouting of chip production towards supplies for the electronic industry which proved willing to pay more are the main reasons. Trade specialization and globalization which are endemic for the contemporary world economy do not help to restore the broken supply-demand equilibrium of microchips.

Connecting financialisation and structural change: a critical appraisal regarding Brazil

Abstract The contribution of this paper is to discuss the particularities of financialisation in peripheral economies, emphasising the channels through which financialisation contributes to redefining their trajectory of structural change. This paper has, as a reference, the structural regression of the Brazilian case, which is characterised by the deindustrialisation and trade specialisation marked by export reprimarisation. The aspects covered are the financialisation of non-financial corporations, of the exchange rate and of the determination of the commodity prices, which are associated with the Dutch disease.

Dynamics of Development of Production and Export of Agricultural Products in the Context of Foreign Trade in Australia

The agricultural sector is one of the main branches of the Australian economy and of the country’s exports. This contributes to the considerable level of agricultural development and resource specialisation in international trade in general. Ukraine in this respect is like Australia, which makes the current state of the agrarian sector in both countries relevant. The purpose of this study was to investigate the state of the agricultural sector in Australia and find elements of development that would help change the Ukrainian agriculture. Statistical methods, such as graphical and statistical analysis, became the main methods in the study. This is conditioned upon the formation of conclusions mostly based on statistical information, graphs and tables presented in the article and constructed with statistical TradeMap. During the study, the author concluded that the fate of agricultural exports in the country was reduced due to the current orientation of the country towards the export of resources, namely iron. Within the structure of export of agricultural products, considerable changes are taking place, the main of which is the transition to production of animal products. Ukraine may adopt some features of the sector in Australia, namely how the country is conducting investment policy in the sector. Nevertheless, it was found that there are significant differences in the agricultural sector of both countries. Because of this, it is impossible to completely change the plan of operation of the Australian agriculture. Research on the future development of the industry in Australia, considering current trends and their impact on foreign policy and trade in the country, may be promising. This article will be useful for studying the functioning of the economy of Australia and Ukraine, namely their agricultural sectors; to form the national policy of the agrarian sector and foreign trade; for students to learn economic disciplines and write corresponding theses.