2003
DOI: 10.1111/1467-8454.00189
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Analysing Comparative Advantage and Competitiveness: An Application to Australia's Textile and Clothing Industries

Abstract: Australia's comparative advantage and competitiveness in textile and clothing (TAC) industries are analysed, using Balassa's revealed comparative advantage index and Vollrath's measures of competitiveness. The analysis based on Balassa's indices shows that Australia has a strong comparative disadvantage in textiles and clothing as aggregate commodity groups, but there is comparative advantage in sub–categories of ‘special textile products’, ‘floor coverage, tapestry etc’, and ‘fur clothing’. The analysis based… Show more

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Cited by 63 publications
(38 citation statements)
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“…Consequently, the RTA index is considered to be a more appropriate measure of competitiveness in this study. The Vollrath indices have been widely used in the economic literature in several empirical studies that explore the international competitiveness of specific sectors or products (Traill and Da Silva 1996;Bavorová 2003;Fertö and Hubbard 2003;Havrila and Gunawardana 2003;Ivankovič et al 2005;Hambalková 2006;Asciuto et al 2008;Crescimanno et al 2011;Crescimanno and Galati 2012), but they have never been used to evaluate the effects of the financial and economic crisis on the competitive position of a nation.…”
Section: Methodological Approachmentioning
confidence: 99%
“…Consequently, the RTA index is considered to be a more appropriate measure of competitiveness in this study. The Vollrath indices have been widely used in the economic literature in several empirical studies that explore the international competitiveness of specific sectors or products (Traill and Da Silva 1996;Bavorová 2003;Fertö and Hubbard 2003;Havrila and Gunawardana 2003;Ivankovič et al 2005;Hambalková 2006;Asciuto et al 2008;Crescimanno et al 2011;Crescimanno and Galati 2012), but they have never been used to evaluate the effects of the financial and economic crisis on the competitive position of a nation.…”
Section: Methodological Approachmentioning
confidence: 99%
“…The index of the Revealed Comparative Advantage (RCA) has been used to describe whether or not a country has a comparative advantage in a particular industry sector or product through trade, without analyzing the main sources of this comparative advantage [4][5][6][7]. Defined as the ratio of the share of exports of a product or an industry sector of a country in the global market, to the share of total exports of all products or industry sectors of the country in the same market, RCA index imprinted as follows RCAij = (xij / Xj) / (xiw / Xw) where, RCAij: revealed comparative advantage index for product or sector of country xij: the exports of the product or sector of country Xj: total exports of country Xiw: the exports of the product or sector i worldwide Xw: total exports worldwide Whether or not a country has comparative advantage within a product category depends on the value of the index.…”
Section: Methodsmentioning
confidence: 99%
“…The concept is to distinguish the competitive products of a country in the international trade [10,11,17,18] . In this paper three terms have been used [12] : the net trade index ("Normalized Balassa") NT j for the study of consequences from the external asparagus trade on national trade balance [19,20] , a specialization of Michaelly index [21,22] for bilateral [23,24] analysis…”
Section: Methodsmentioning
confidence: 99%