Revealed Comparative Advantage: An Analysis of Exports of Rwanda

Gupta, Mayank; Kumar, Harish

doi:10.9790/5933-0803036976

Cited by 4 publications

(3 citation statements)

References 4 publications

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“…The findings revealed that Germany and The Netherlands have reaped the most benefits from the enlargement's potential, while France and Belgium, on the other hand, have lost their competitiveness. Gupta and Kumar (2017) undertook analysis of agriculture exports of Rwanda using Balassa's RCA and found that Rwanda has the highest comparative advantage in coffee, tea, mati and spices. Balogh and J ambor (2017) investigated the competitive advantage of EU in cheese trade and found that resources, geography and membership of EU were the critical drivers that influence RCA of EU in cheese trade in a CR 33,6 positive way, while foreign direct investment had a negative effect on cheese trade in EU.…”

Section: Review Of Literaturementioning

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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Section: Review Of Literaturementioning

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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“…Balassa's RCA index is useful to evaluate whether a certain country has comparative advantages in the exports of a given commodity with regard to a certain group of countries [7]. Revealed Comparative Advantage reckons the magnitude of comparative advantage that a country enjoys in exports of various goods [8]. RCA is calculated as follows:…”

Section: Trade Measures Have Always Been Central To Measuring Countrimentioning

confidence: 99%

International competitiveness and potential for trade cooperation on clean energy between the USA and China

Dong

et al. 2020

E3S Web Conf.

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As two super powers in energy consumption and carbon emission, the United States and China have been striving to develop clean energy in recent years. In this paper, we study the international competitiveness and potential for trade cooperation in clean energy between the two countries. This paper reveals that the United States has comparative advantages in terms of biomass energy and nuclear power, while China has comparative advantages in terms of solar energy and wind energy. The two countries have a strong complementarity in solar energy, biomass energy and nuclear energy with exporting from the United States and importing from China. In solar energy and wind energy a strong complementarity has been formed with exporting from China and importing into the United States. So the two countries have a strong potential for cooperation. Meanwhile, the potential trade cooperation is enhancing with the United States accelerating the development and exportation in natural gas. Therefore, the two countries have a strong trade complementarity on clear energy and a strong potential for cooperation in general. At the same time, the VCR model is built based on the clean energy Trade Complementary Index(TCIc and TCIu) between the United States and China. It can be found that the clean energy trade cooperation helps to curb CO2 emissions and promotes the GDP growth in the United States. However, China is in the early stage of clean energy development, the cooperation would cause a decline of GDP in China.

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“…Furthermore, using regression analysis revealed that agricultural exports, agricultural land, and exchange rate affect positively the export or trade competitiveness of the agricultural sector. Gupta and Kumar (2017) identified Rwanda’s patterns of trade using standard Balassa revealed comparative advantage index (BRCAI). They found due to the increasing pressure from the supply side the export product lines have been decreasing, and the high competition between exporting countries made Rwandan exports uncompetitive.…”

Section: Introductionmentioning

confidence: 99%

Outlook on the global trade competitiveness of Pakistan’s mandarin industry: An application of revealed symmetric comparative advantage framework

et al. 2018

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Competitiveness is the ability to trade products that meet the requirements of global demand for better price, quality, and quantity. International competition in the agricultural and food industries has been significantly increased due to globalization. Furthermore, labor-intensive countries are losing competitiveness due to lack of local value addition and other development efforts. This study aims to examine the competitiveness of the mandarin industry for the world’s 15 leading mandarin exporters using revealed symmetric comparative advantage (RSCA). An attempt was also made to assess the effect of productivity growth and real effective exchange rate on the competitiveness of the mandarin industry through panel regression analysis. The results showed that RSCA patterns vary between the selected countries and only five countries, that is, Morocco, Spain, Pakistan, Turkey, and Peru have a comparative advantage in mandarin exports while all other countries have a comparative disadvantage. The highest change in the RSCA value was seen for Pakistan which gives a good indication of the status of the country in the development of its mandarin industry. For Pakistan, there is a need to explore the new high-value market to further exploit this comparative advantage and to increase export earnings.

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Revealed Comparative Advantage: An Analysis of Exports of Rwanda

Cited by 4 publications

References 4 publications

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

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

International competitiveness and potential for trade cooperation on clean energy between the USA and China

Outlook on the global trade competitiveness of Pakistan’s mandarin industry: An application of revealed symmetric comparative advantage framework

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