Measuring the Global Trade Competitiveness of Pakistan’s Cotton Crop

Abstract

The concept of competitiveness is explained as a country (firm/entity) can trade its products to meet the required demand of global consumer (like quantity, quality, and price) at the same time to maximize its profit to make the country economically better (Turi Abstract | Cotton is the most considerable non-food cash crop of Pakistan and it contributes significantly to the national income of the country. Cotton supplies raw material to the domestic textile industries and is also exported in the raw and processed form to other countries. Pakistan was a net exporter of cotton but now becomes a net importer due to its continuous domestic consumption and stagnant yield. This study aims to assess the trade competitiveness of cotton crop for the world's 10 leading cotton exporters using revealed comparative advantage indices and relative competitive advantage indices such as Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA), Relative Import Advantage (RMA), Relative Export Advantage (RXA) and Relative Trade Advantage (RTA). The data were taken from the International Trade Center (ITC) UN-COMTRADE Statistics of cotton export and import from 2009-18. The findings revealed that Pakistan has a competitive and comparative advantage in exports of cotton while having a disadvantage in imports of cotton and also has no specialization in its exports. The results suggested that Pakistan has to explore new potential markets to strengthen its comparative and competitive advantage as well as raise cotton export earnings.

Competitiveness Analysis of Malaysian and Indonesian Sago Exports

“…(De Cepeda and Bernabéu, 2019). Khalid et al (2021), in the studies has evaluate the trade competitiveness of the cotton crop for the world's top ten cotton exporters using revealed comparative advantage indices and relative competitive advantage indices such as Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA), Relative Import Advantage (RMA), Relative Export Advantage (RXA), and Relative Trade Advantage RTA). According to the results, Pakistan has a favorable and comparative advantage in cotton exports despite getting a disadvantage in cotton imports and no specialization in its exports.…”

Competitiveness of the Polish Agri-Food Products in the Export to the World Market

“…A variety of indicators are used including; share in exports, comparative advantage index and trade balance. With regard to the industry level, this approach was used by, among others, Kulapa Kuldilok et al [2013], Laura Carraresi and Alessandro Banterle [2015], Zarqa Khalid et al [2021]. The literature on the subject examines various aspects of the competitiveness of the food industry in Poland, often against the background of European Union (EU) countries.…”