Dynamics of Comparative Advantage and Competitiveness of Textile and Apparel Industry: An Empirical Analysis for China and Bangladesh

Hossain, Ekram; Huang, Dechun; Zhang, Changzheng; Van, Vu Thi

doi:10.9734/bjemt/2017/30840

Cited by 5 publications

(5 citation statements)

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“…The concept of revealed comparative advantage has been used by many researchers to reveal the competitiveness of textile and apparel sectors of different countries (Tripa and Cuc, 2016; Ali et al , 2017; Havrila and Gunawardana, 2003; Karaalp and Yilmaz, 2012; Hossain et al , 2017; Abtew et al , 2017. With reference to the previous studies and application of the RCA in textiles, and the BI and Lafay approach, an evaluation of the competitiveness of Ethiopia’s textile and apparel sector was made at a global level, as discussed in the subsequent sections.…”

Section: Resultsmentioning

confidence: 99%

“…The RCA has been used by many researchers to reveal the competitiveness of textile and apparel sectors of different countries (Simona et al , 2016; Ali et al , 2017; Havrila and Gunawardana, 2003; Karaalp and Yilmaz, 2012; Hossain et al , 2017; Abtew et al , 2017) to calculate the relative advantage or disadvantage of a certain country in a certain class of goods or services as evidenced by trade flows. With reference to the research of the authors cited, RCA was deployed for the purpose of evaluating whether Ethiopia has a revealed comparative advantage or disadvantage in exporting its textile and apparel products.…”

Section: Methodology and Datamentioning

confidence: 99%

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Comparative advantage of Ethiopian textile and apparel industry

Rundassa

Azene

Berhan

2019

RJTA

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Purpose Ethiopia’s economy is primarily based on agriculture, but starting form 2010, the government has been determined to diversify the exports with a priority set for strategic sectors like light manufacturing in which textile and apparel manufacturing industries are included. The purpose of this paper is to measure the comparative advantages of the Ethiopian textile and apparel industry using the revealed comparative advantage (RCA) in the period from 2007 to 2016. Design/methodology/approach For the purpose of the paper, secondary data were collected from the UN comtrade site, and related data sources were cited in the literature review for the purpose of triangulation (cross-checking of the analysis with theoretical background). From the theoretical background, the two indices of RCA (Balassa index and Lafay index) were used for the evaluation of the industries’ competitive advantage and to identify which industry (textiles or apparel) was of more importance in the country. Findings The findings of the study showed that Ethiopia was more competitive in the textile sector. However, and with reference to the Lafay index, the country has been focusing on apparel sector, because of the opportunities for job creation. Research limitations/implications For the purpose of this study, secondary data were used and the general conclusions are limited to the corresponding sources of data. Practical implications Because of the labor-intensive nature, the textile and apparel sector has been one of the areas promoted by the Ethiopian Government in its industrialization policy. The finding of this paper can be used by policy makers to evaluate the competitiveness of the country. Social implications The findings can be used to assess social upgrading issues in the textile and apparel sector. Originality/value The work is the first of its kind in the sector as well as the country.

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Section: Resultsmentioning

confidence: 99%

Section: Methodology and Datamentioning

confidence: 99%

Comparative advantage of Ethiopian textile and apparel industry

Rundassa

Azene

Berhan

2019

RJTA

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“…Furthermore, Spearman rank correlation coefficients were computed to analyze changes over the study period for India and other competing countries. The Spearman’s rank correlation coefficient (r s ) may be determined using the RCA/RSCA/NRCA value of each product to explain substitutability or complementarity between the nations studied (Hossain et al , 2017). The Spearman’s rank correlation coefficient is commonly used to determine the degree and nature of association between RCA/RSCA/NRCA indices.…”

Section: Methodsmentioning

confidence: 99%

Analyzing relative export competitiveness of Indian agricultural food products: a study of fresh and processed fruits and vegetables

Sharma

Kathuria

Kaur

2022

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Purpose Given the dominant share of India in global production of fruits and vegetables, this paper intends to analyze the export competitiveness of India and other major food exporters in the world trade. The purpose of this study is to examine export structure, substitutability and complementarity of selected fresh and processed fruits and vegetables of top ten food exporters for the period 2010-20. Design/methodology/approach Balassa’s (1965) revealed comparative advantage (RCA) index was used to measure RCA indices of selected fruits and vegetables under study. Also, revealed symmetric comparative advantage (RSCA) and normalized RCA (NRCA) indices have been calculated. Further, Spearman rank correlation coefficients were computed to analyze changes over the study period for India and other competing countries. The export data have been sourced from UN Comtrade, an electronic database of United Nations, as well as World Trade Statistical Review, a database of World Trade Organization. The analysis was undertaken at Harmonized System (HS) four-digit classification for the period 2010-20. Findings The results disclosed an improvement in India’s comparative advantage over the period of 2010-20 in HS 07 product category, whereas the advantage ceded to other competitive nations in HS 08 product category. Further, Spearman rank correlation coefficients revealed that India faces competition from countries like China, Indonesia, Brazil, Thailand, Argentina and European Union for HS 07 product category, while countries like Mexico, Indonesia, Brazil and Thailandare the major competitors of India in HS 08 product category. Originality/value The paper expands the existing agricultural trade literature in three ways. First, it is one of the very few studies that have analyzed RCA for Indian fresh and processed fruits and vegetables using three different types of indices, namely, Balassa’s RCA, RSCA and NRCA. Second, the authors provide a number of comparisons related to RCA for Indian fruits and vegetables with other top food exporters in the world for a period of 10 years (2010-20). Third, the authors contribute to agricultural trade literature by assessing the substitutability or complementarity of India in the export of fruits and vegetables with other competing nations by using Spearman rank correlation coefficients.

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“…Maryam (2019) used the RCA and TCI indices to analyze the trade situation of India and other BRICS countries, arguing that distance is the main factor restricting trade flows. Hossain et al (2021) calculated the trade intensity and comparative advantage index between China and Bangladesh based on the trade data of China and Bangladesh from 1995 to 2019 and concluded that there is a lot of room for trade expansion between the two countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Malaysia's Export Potential of Palm Oil and Its Products to RCEP Member Countries

Yang,

Zhai,

Masron

2024

PaperASIA

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This study explores the export potential of the Malaysian palm oil industry to RCEP (Regional Comprehensive Economic Partnership) member countries based on the regional economic framework. The panel data from 2018 to 2022 were analyzed using the Trade Gravity Model, RCA (Revealed Comparative Advantage), and TCI (Trade Complementarity Index) indices. The results categorize the fifteen RCEP member countries into three potential classes based on the type of potential. In addition, it was found that the trade complementarity of RCEP member countries showed a significant positive correlation with the export size of Malaysian palm oil and its products. The study provides insights into the trade pattern of palm oil in the region and provides a valuable reference for future trade policy formulation and industry development and provides a basis for research related to the sustainable development of the Malaysian palm oil industry.

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Dynamics of Comparative Advantage and Competitiveness of Textile and Apparel Industry: An Empirical Analysis for China and Bangladesh

Cited by 5 publications

References 0 publications

Comparative advantage of Ethiopian textile and apparel industry

Comparative advantage of Ethiopian textile and apparel industry

Analyzing relative export competitiveness of Indian agricultural food products: a study of fresh and processed fruits and vegetables

Analysis of Malaysia's Export Potential of Palm Oil and Its Products to RCEP Member Countries

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