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Article
Publication date: 5 June 2017

Štefan Bojnec and Imre Fertő

The purpose of this paper is to examine the pattern, duration and country-level determinants of global agri-food export competitiveness of 23 major global agri-food trading…

Abstract

Purpose

The purpose of this paper is to examine the pattern, duration and country-level determinants of global agri-food export competitiveness of 23 major global agri-food trading countries.

Design/methodology/approach

A large panel data set is compiled to facilitate assessment of the pattern, duration and country-level determinants of global agri-food export competitiveness using a revealed comparative advantage index.

Findings

The results suggest that the duration of revealed comparative advantage is heterogeneous at the agri-food product level. Long-term survival rates as revealed by the comparative advantage indices are among the highest for the Netherlands, France, Belgium, the USA, Argentina and New Zealand. The level of economic development, the share of agricultural employment, subsidies to agriculture and differentiated consumer agri-food products increase the likelihood of failure in the duration of comparative advantage, while the abundance of agricultural land and export diversification reduce that likelihood.

Originality/value

The framework is conceptually innovative in how it models the likelihood of failure in the duration of comparative advantage and assesses implications. Export competitiveness is a crucial factor in long-term global farm business survival as it fosters opportunities for business prosperity on global markets.

Details

British Food Journal, vol. 119 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 2 October 2007

Belay Seyoum

The purpose of this paper is to analyze the competitiveness of selected services: business, financial, transport and travel services in developing countries in relation to that of…

6523

Abstract

Purpose

The purpose of this paper is to analyze the competitiveness of selected services: business, financial, transport and travel services in developing countries in relation to that of the rest of the world based on three indices of revealed comparative advantage.

Design/methodology/approach

The study uses revealed comparative advantage (RCA) indices to measure developing countries' comparative advantages in selected services for the period 1998‐2003.

Findings

Strong comparative advantages exist for many developing countries in transport, and travel services. There is substantial room for improvement in financial and business services. Trade liberalization and lack of adequate preparation appears to have resulted in a weakening of their comparative advantages over the years. However, their revealed comparative advantages remain, by and large, stable and do not show a fundamental shift in the structure of their comparative advantages.

Originality/value

There are no studies examining developing countries' comparative advantages in services. The findings and policy recommendations can be used by developing countries to improve the competitiveness of their service sectors.

Details

Journal of Economic Studies, vol. 34 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 22 March 2013

Lalit Mohan Kathuria

The textiles and clothing sector is one of India's most important economic sectors, next to the agriculture sector in terms of industrial output and employment, providing…

2976

Abstract

Purpose

The textiles and clothing sector is one of India's most important economic sectors, next to the agriculture sector in terms of industrial output and employment, providing employment to more than 30 million people. Many studies predict that India will get a significant share of the world textiles and clothing trade due to the advantage of cheap labor and other factor resources but India's slower growth rate, as compared to other low‐cost competitors, indicates otherwise. The purpose of this paper is to analyze the comparative advantage of India and Bangladesh for the clothing sector in the world export trade with the help of Balassa's index of Revealed Comparative Advantage (RCA). The study highlights the shift in comparative advantage for India and Bangladesh between two periods. The study also points out constraints restricting the growth of export share of India in world market and offers suggestions to policy makers for enhancing India's export share in the world clothing trade.

Design/methodology/approach

RCA indices have been calculated for various clothing product categories (under Harmonized System) up to four digit classification with the help of Balassa's relative measure for India and Bangladesh. Tables have been prepared for India and Bangladesh, highlighting products having comparatively higher revealed comparative advantage. For calculation of RCA indices, the export data have been taken from “UN Comtrade”, an electronic database of the United Nations and from the database of the World Trade Organization (WTO). Further, Spearman rank correlation coefficient has been calculated for analyzing the changes over the period 1995‐2003 for India and Bangladesh.

Findings

Findings reveal that the number of products for which India enjoyed the comparative advantage increased from 23 products to 25 products between 1995 and 2003 and for Bangladesh, this number increased from 21 products to 29 products between 1995 and 2003. Clothing exports of India and Bangladesh are classified on the basis of comparative advantage at the HS 4‐digit level for the years 1995 and 2003 and the comparative position is given on the basis of a measure of structural change in exports of India and Bangladesh. The products in which India and Bangladesh have comparative advantage in garment exports are highlighted.

Originality/value

This paper has calculated and compared revealed comparative advantage indices over a period of time up to four digits classification of HS product categories. Also, this paper highlights constraints, and offer suggestions which would be helpful to exporters and policy makers.

Details

Competitiveness Review: An International Business Journal, vol. 23 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 15 October 2018

Lalit Mohan Kathuria

Manufacturing sector plays a vital role in the economy of developing countries like India. The Indian textiles and clothing industry has an overwhelming presence in the economic…

Abstract

Purpose

Manufacturing sector plays a vital role in the economy of developing countries like India. The Indian textiles and clothing industry has an overwhelming presence in the economic life of the country. The readymade garment segment contributes 42 per cent of the Indian textiles exports, which include cotton garments and accessories, manmade fiber garments and other textiles clothing. The overall export basket of India has increased from 13.6 per cent in 2014-15 to 15 per cent in 2015-16 for textiles and apparel products including handicrafts. Though clothing exports from India have witnessed high growth rates in the past decade as compared to other commodity exports, India’s performance, when compared to many competing countries, has not been much encouraging. India has lagged behind in clothing exports as compared to China, Bangladesh and Vietnam. This study mainly focused on analyzing the changing clothing export structure of select countries such as India, China, Bangladesh, Vietnam and Turkey by using revealed comparative advantage indices.

Design/methodology/approach

This study uses different variants of revealed comparative advantage indices, namely, Balassa’s RCA Index (Balassa, 1965), Dynamic RCA index (Kreinin and Plummer, 1994) and Revealed Symmetrical Comparative Advantage Index (Laursen, 1998). Indices were calculated for the period 2003 and 2013 under knitted category (HS 61) and not knitted category (HS 62) up to four-digit classification. Spearman rank correlation was applied for analyzing changes during the period under study. For calculation of RCA and dynamic RCA indices, the export data have been taken from UN Comtrade, an electronic database of United Nation and International Trade Statistics database of World Trade Organization.

Findings

The results highlighted that India ranks at the bottom in seven HS 61 clothing products and fourth in five HS 61 products. Bangladesh stands at the top in 11 of the HS 61 clothing products among selected countries. Similarly, Vietnam has also gained stronghold position in the global clothing trade. In many of these products, Bangladesh has higher revealed comparative advantage as compared to other countries. In HS 62 product category, India was at the bottom in eight products, whereas Bangladesh has gained the most in nine products on the comparative advantage basis. The findings highlighted the shift taking place in global clothing trade structure as trade was shifting toward low-cost countries such as Vietnam and Bangladesh. Surprisingly, India has foregone strategic advantage in many value-added products to low-cost countries such as Bangladesh and Vietnam.

Originality/value

This is one of the few studies undertaken to analyze comparative advantages of leading clothing exporter countries (mainly from Asian region) in the recent times. Findings depict changing export structure and dynamics of clothing exports in the region. Findings would help government, industry associations and policymakers in enhancing sector competitiveness and in identifying the growth products.

Details

Competitiveness Review: An International Business Journal, vol. 28 no. 5
Type: Research Article
ISSN: 1059-5422

Keywords

Open Access
Article
Publication date: 31 December 2011

Jung Taik Hyun and Jin Young Hong

In this paper, we examine the comparative advantage of Korea and China while focusing on their technology level. The three digit SITC (Standard International Trade Classification…

Abstract

In this paper, we examine the comparative advantage of Korea and China while focusing on their technology level. The three digit SITC (Standard International Trade Classification) data is classified by technology level and the revealed comparative advantage (RCA) is derived from 1992-2009 by using UN COMTRADE data. For careful interpretation of the comparative advantage and technology levels, we also examined intra-industry trade and unit values of bilateral Korea-China trade, and semi-conductor industry technology. We found that the revealed comparative advantage has moved from low technology products to high technology products in Korea. China still maintains a comparative advantage in low technology products such as textiles and clothing, but at the same time, China’s high and medium-high technology products have recently gained a comparative advantage. The perception that China only has a comparative advantage for labor intensive products with low technology should be changed based on our analysis. However, China’s advancement in technology should not be overestimated. When comparing the unit value of basic materials of Korea’s and China’s exports, we found that Korea’s export product prices are on average higher than that of China’s, although the gap is reducing. A wider technology gap between Korea and China still exists in the semi-conductor industry, which is one of the most advanced high technology industries throughout the world.

Details

Journal of International Logistics and Trade, vol. 9 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 15 July 2019

Zahra Saki, Marguerite Moore, Ivan Kandilov, Lori Rothenberg and A. Blanton Godfrey

The purpose of this study is to identify US textile and apparel (TAP) products and categories that demonstrate export comparative advantage and their respective country…

Abstract

Purpose

The purpose of this study is to identify US textile and apparel (TAP) products and categories that demonstrate export comparative advantage and their respective country destinations.

Design/methodology/approach

Revealed comparative advantage (RCA) and normalized revealed comparative advantage (NRCA) in the long term (1996-2016) and short term (2010-2016) using two-digit Harmonized Commodity Description and Coding System codes (HS codes) provide an insight into export advantage of TAP products. Non-parametric rank correlation (i.e. Spearman rank correlation) tests consistency between RCA and NRCA. Subsequently, NRCA using four-digit HS codes identify textile sub-categories with export comparative advantage. Bilateral trade data identify export destinations for sub-categories that indicate US export comparative advantage in the short term.

Findings

Aggregated product-level comparison of RCA and NRCA ranking indicates a consistent positive correlation between the two indices. The disaggregated findings reveal cotton fiber HS5201, artificial filament tow HS5502, non-wovens HS5603, cotton yarn HS5205, carpet and other floor coverings HS5703 and worn clothing HS6309 as sources of US TAP export advantage.

Originality/value

This research provides a comprehensive, current analysis of the US competitive position within the TAP global environment. Incorporation of NRCA into the study’s design demonstrates the flexibility of this measure in a new industry context.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 29 July 2022

Ashpreet Sharma, Lalit Mohan Kathuria and Tanveen Kaur

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…

Abstract

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.

Details

Competitiveness Review: An International Business Journal , vol. 33 no. 6
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 6 March 2007

Peter Kilduff and Ting Chi

This paper aims to present an exploratory investigation into ten‐year (1995‐2004) patterns of trade specialization among Eastern European and former Soviet Union Nations…

2300

Abstract

Purpose

This paper aims to present an exploratory investigation into ten‐year (1995‐2004) patterns of trade specialization among Eastern European and former Soviet Union Nations, assessing patterns of comparative advantage across the textile machinery, man‐made fiber, textile, and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories.

Design/methodology/approach

A revealed symmetric comparative advantage index is employed to evaluate international competitiveness for 27 Eastern European and former Soviet Union Nations over a ten‐year period. Repeated measures ANOVA is used to determine the significance of the observed patterns across four income‐defined groups of nations.

Findings

Overall, the pattern of export development and RSCA generally reflects expectations regarding factor proportions theory and industry evolution models. The RMANOVA partially confirms the observations. The analysis indicates that income group does not independently affect comparative advantage; however, the nature of products is the significant factor influencing national comparative advantage.

Practical implications

The established models may be better at understanding those nations which have established relatively stable politic and economic environment, and been experiencing earlier stages of industry development, but appear less useful in predicting development patterns for those nations experiencing dramatic transitions from regulated to de‐regulated markets.

Originality/value

The patterns of national comparative advantage in a vertical textile complex are identified for Eastern European and former Soviet Union Nations. The dynamics of change over a ten‐year period following economic reforms are revealed.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 11 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 29 November 2018

Javeria Maryam, Umer Jeelanie Banday and Ashok Mittal

In the recent international scenario, the rise of emerging economies, in particular, Brazil, Russia, India, China and South Africa (BRICS) has gained ample of attention. The…

Abstract

Purpose

In the recent international scenario, the rise of emerging economies, in particular, Brazil, Russia, India, China and South Africa (BRICS) has gained ample of attention. The global trade flows of the BRICS countries have significantly increased during the last one-and-a-half decade. The purpose of this paper is to examine the intra-BRICS and BRICS–EU trade flows.

Design/methodology/approach

To study the intensity of trade among BRICS countries and with EU, the Trade Intensity Index is employed for the period 2001–2015. Balassa’s revealed comparative advantage (RCA) index is computed for the assessment of comparative advantages of exports by BRICS countries in the year 2015 in the global markets. A comparative analysis of export similarity is done for India and other BRICS countries in EU.

Findings

The findings of trade intensity showed large bilateral trade flows among BRICS member. Russia has emerged as the main trading partner with EU in BRICS. For the year 2015, the comparative study of RCA at HS-two digits and HS-four digits classification highlights marginal structural changes in the export composition of these countries. The analysis revealed that Brazil and Russia have comparative advantages in natural resource-based products, while India and China possessed comparative advantages in manufactured and processed products. The export similarity index shows the presence of competition between India and China in EU.

Practical implications

This paper highlights the need for closer cooperation to promote intra-BRICS trade and to make structural transformations in the basket of trading products by them to have trade benefits at large.

Originality/value

Numerous studies are available on bilateral trade of BRICS members. However, limited studies are available to get a holistic view of intra-BRICS trade. This paper is an attempt to examine the BRICS countries trade profile both at global levels and within the group.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 17 January 2024

Md Rokibul Hasan, Ishtehar Sharif Swazan and Debanjan Das

This study aims to examine the export competitiveness of Vietnam’s apparel sector by identifying the precise product categories that create its comparative advantage.

Abstract

Purpose

This study aims to examine the export competitiveness of Vietnam’s apparel sector by identifying the precise product categories that create its comparative advantage.

Design/methodology/approach

Revealed comparative advantage (RCA) and normalized revealed comparative advantage (NRCA) form the research methodology, and the RCA/NRCA values are calculated for the 2011–2020 period.

Findings

In total, 29 out of 34 product categories at four-digit levels and 65 out of 217 subcategories at six-digit levels elicited a consistent export comparative advantage throughout the 10-year study timeframe. The study also identified 13 subcategories at six-digit levels, which indicated 10 consecutive years of relative disadvantages.

Research limitations/implications

The study’s findings have far-reaching implications for economic policy, development strategies and global economic integration. By providing a nuanced understanding of a country’s export strengths in the international apparel trade, this study offers valuable guidance for informed decision-making at various levels. The findings will serve as a significant source of information for policymakers and help them formulate novel policies aiming to diversify Vietnam’s apparel product offerings and export destinations. The results will also inform the government regarding the industry’s potential and attract necessary support, enabling it to grow further. This study reveals patterns in Vietnam’s apparel trade but does not provide insights into the underlying causes of comparative advantage.

Originality/value

The study provides an in-depth overview of Vietnam’s comparative advantages and disadvantages at two-, four- and six-digit harmonized system levels and helps understand Vietnam’s apparel export competitiveness.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-4408

Keywords

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