Vertical Comparative Advantage

Beaudreau, Bernard C.

doi:10.1080/08853908.2011.581610

Cited by 10 publications

(13 citation statements)

References 8 publications

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“…Hal tersebut dikarenakan RCA mengukur pangsa ekspor yang didasari oleh kinerja ekspor suatu negara dan pola perdagangannya dengan cara mengukur komoditas ekspor suatu negara relatif terhadap total ekspornya. Namun demikian, meskipun secara masif digunakan dan dianggap sebagai landasan dari sebuah teori perdagangan, konsep RCA masih agak lemah (Beaudreau, 2011). Secara matematis RCA dapat dihitung menggunakan rumus seperti berikut (Frija et al, 2017 Adapun indikator yang digunakan untuk menghitung nilai RCA index adalah jika nilai RCA index > 1, maka terdapat keunggulan komparatif terhadap suatu produk dan jika nilai RCA index < 1, maka tidak terdapat keunggulan komparatif terhadap suatu produk.…”

Section: Metode Penelitianunclassified

The EXPORT COMPETITIVENESS OF INDONESIAN SPICES TO EUROPEAN UNION-15

Zuhdi¹,

Rahmadona

Maulana

2021

Agric

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The spice commodity has long been a mainstay of Indonesian exports to the world. Therefore, export of spice commodities needs to be maintained and increased in value in order to balance Indonesia’s trade balance. The potential of the European Union 15 as a large export market for Indonesian spices, so the export of spice commodities must be increased. The current worsening situation (the Sino-United States trade war) has increased the urgency of Indonesia’s exports to other countries. Specifically, this study aims to see the comparative development of Indonesian spice exports to the European Union 15. Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA) and Trade Balance Index (TBI) are used to determine the position of export competitiveness of spices in the European Union 15. The results showed that the RCA value for nutmeg, pepper and cloves > 1 so that the commodity is a competitive spice commodity and is in the maturity stage because it has a TBI> 0.8. Ginger has no competitiveness and is still in the export growth stage. Based on the RSCA, the variations in the competitiveness of the spices of nutmeg, pepper, and cloves during the period 2008 - 2018 have a value of> 0 which means that it has comparative competitiveness, while for ginger the value is <0 so that ginger does not have comparative competitiveness. Efforts that can be taken to further increase export competitiveness in the global market are by developing production and productivity so that they can export to other potential markets such as the Americas and Asia.

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Section: Metode Penelitianunclassified

The EXPORT COMPETITIVENESS OF INDONESIAN SPICES TO EUROPEAN UNION-15

Zuhdi¹,

Rahmadona

Maulana

2021

Agric

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“…al. (2011) and Beaudreau (2011), currently there are two most prominent theories of comparative advantage: Ricardian theory and the theory of Heckscher-Ohlin. Ricardian theory states that a comparative advantage exists between countries due to different technologies in the industry.…”

Section: Analysis Of Literaturementioning

confidence: 99%

Strengthening Lithuanian - Latvian Cross - Border Cooperation in the Context of International Trade

Zykienė

Laučienė

Daugėlienė

et al. 2021

EIS

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The article analyses the strengthening of the competitiveness of countries based on crossborder cooperation through the prism of international trade indicators. Due to the increase in international competition, countries, especially small economies, are finding it increasingly difficult to maintain their position in the global market and remain competitive if this position is pursued individually. It is therefore necessary to review competition strategies and reassess opportunities and competitive advantages, as well as to promote coopetition between border region companies at institutional level. The article presents a new approach to regional competitiveness, which is achieved not through the development of the competitive advantages of the regions of individual countries, but through their cooperation and thus achieving common benefits. This is particularly relevant for border regions, as their uniqueness allows them to exploit cross-border region cooperation, which can generate added value by utilising the potential of cooperating regions to complement each other and become a competitive hub for economic growth. Only a strategic partnership based on regional cooperation will promote cooperation between manufacturers in different regions and ensure the achievement of co-creation and international development goals. The article analyses the case of Lithuania and Latvia as an example of cross-border cooperation, as internationally these countries are often matched and treated as one region, but in fact they compete fiercely with each other for better positions in foreign markets. This also shows that Lithuania’s and Latvia’s foreign trade with the European Union (hereinafter - the EU) accounted for the largest share of their foreign trade. Secondary statistical data of the EU-28 Eurostat of 2010 - 2019 and Finger Kreinin, RCA, and Lafay indices were used for the study. After assessing the convergence of the Lithuanian and Latvian export structure according to the FKI index during the study and finding that the export structure of these countries is very similar, the relative comparative advantage of exports by individual product sectors was assessed on the basis of the RCA index and the comparative advantage on the basis of the LAFAY index. The study showed that both countries had comparative advantages in the same product groups. The identification of common points of contact has highlighted economic activities, the development of which could be given more attention through the cooperation between the countries, and which would ensure overall economic benefits. The article concludes with strategic recommendations and measures to promote cross-border cooperation and increase the region’s competitiveness. The article contributes to the regional economic subject literature, as the concept of cross-border region competitiveness is developed by promoting not the competition of individual regions, but their cooperation by discovering common similarities in economic development. The article presents methodological logic and empirical calculations that would allow policy makers to develop cooperation strategies with those border regions with which it is expedient to cooperate for greater economic benefits. Promoting regional development and reducing regional disparities not only between regions within the same country but also between different countries requires the patient and consistent work of governments, businesses and academia, as well as individual communities, to develop measures and initiatives to promote cross-border cooperation.

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“…Examples include: new international division of labour (Fröbel et al, 1981;Marin, 2006); disintegration of production (Feenstra, 1998); fragmentation (Arndt and Kierzkowski, 2001); vertical specialization (Hummels et al, 2001) and international technological diffusion (Frantzen, 2000). The evolving model of division of labour among firms and countries has called into question the appropriateness of the traditional concept of comparative advantage, possibly to be replaced by the concept of "vertical comparative advantage" (Beaudreau, 2011).…”

Section: Does Participation In Global Value Chains Matter? *mentioning

confidence: 99%