On the theoretical interpretation of indices of trade intensity and revealed comparative advantage

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.

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A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage

Weltwirtschaftliches Archiv ◽

10.1007/bf02707986 ◽

1991 ◽

Vol 127 (2) ◽

pp. 265-280 ◽

Cited By ~ 197

Author(s):

Thomas L. Vollrath

Keyword(s):

Comparative Advantage ◽

Trade Intensity ◽

Revealed Comparative Advantage ◽

Theoretical Evaluation ◽

Intensity Measures ◽

Alternative Trade

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Potential Gains to New Zealand From CPTPP Membership

Asian Business Research ◽

10.20849/abr.v4i2.617 ◽

2019 ◽

Vol 4 (2) ◽

pp. 14

Author(s):

Satya Gonuguntla

Keyword(s):

New Zealand ◽

Comparative Advantage ◽

Bilateral Trade ◽

Value Added ◽

Trade Agreement ◽

Trade Intensity ◽

Revealed Comparative Advantage ◽

Bilateral Trade Agreement ◽

Primary Goods ◽

Tariff Reductions

New Zealand is a signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) consisting of 11 countries. NZ does not have any bilateral trade agreement with three member countries viz., Canada, Japan, and Mexico which account for 73% of CPTPP’s GDP. Presently, NZ accounts for less than 1% of the merchandise imports of these countries. This paper investigates whether CPTPP membership would enable NZ to increase its exports to these member countries. In other words, does CPTPP membership enhance NZ’s Trade Intensity with the selected member countries? An analysis of the Trade Intensity Indices show that the value of trade with Canada, and Mexico is less than optimal, and with Japan it has been on the decline which can be attributed to the fact that these countries mostly import high value added goods such as capital goods whereas, NZ mostly exports primary goods such as animals. A further analysis of NZ’s Revealed Comparative Advantage reveals that NZ’s comparative advantage is mostly concentrated in primary products. As a consequence, the scope for NZ to enhance its exports to the selected member countries is limited in the post CPTPP era, and any gains arising out of the agreement would be mostly in the form of tariff reductions, and relaxation of non-tariff barriers. The contribution of this paper is about highlighting NZ’s product-wise Revealed Comparative Advantage in relation to the selected member countries, which reveals that NZ has the potential to export Intermediate and Consumer goods, in addition to the Primary goods.

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DAYA SAING EKSPOR PRODUK CPO INDONESIA DAN POTENSI HILIRISASI DIOLAH MENJADI BIODIESEL

JURNAL PERSPEKTIF BEA DAN CUKAI ◽

10.31092/jpbc.v4i2.952 ◽

2020 ◽

Vol 4 (2) ◽

Author(s):

Danar Agus Susanto

Keyword(s):

Palm Oil ◽

Comparative Advantage ◽

Global Market ◽

National Standard ◽

Revealed Comparative Advantage ◽

Crude Palm Oil ◽

A Value ◽

World Demand ◽

Domestic Use

ABSTRACTIndonesia is the world's largest producer of crude palm oil (CPO). Even so, the trend of international trade in Indonesian CPO products has decreased in the last 10 years with a value of -10.19%. The decline in world demand for CPO can be dealt with by utilizing CPO as a biofuel for domestic use, like biodiesel. The purpose of this study is to determine the competitiveness of Indonesian CPO in global trade and determine the parameters of the quality requirements of CPO and biodiesel. The competitiveness analysis method uses the Revealed Comparative Advantage (RCA) method, while the analysis of the potential quality of CPO as a biofuel is carried out by analyzing the Indonesian National Standard (SNI). CPO trade in the global market is controlled by Indonesia with a market share of 50% and Malaysia 25.6%, with the declining trade trend in the last 10 years relatively (2010-2019) of -6.91%. The level of competitiveness of Indonesian CPO products in 2019 is very strong, but on average in the last 10 years, the level of competitiveness of Indonesian CPO is no better than that of Malaysia. Indonesia has SNI 01-2901-2006 and SNI 7182: 2015 as a determinant of the quality of CPO and biodiesel products developed in Indonesia so that the CPO and biodiesel produced fullfil sacurity and safety aspects when used by consumers.Keywords: crude palm oil (CPO), competitivenessv, quality, Indonesian National Standard (SNI) ABSTRAKIndonesia merupakan negara produsen minyak kelapa sawit mentah/ Crude Palm Oil (CPO) terbesar di dunia. Meskipun demikian, tren perdagangan internasional produk CPO Indonesia mengalami penurunan dalam sepuluh tahun terakhir dengan nilai -10,19%. Penurunan permintaan dunia terhadap CPO, dapat disiasati dengan memanfaatkan CPO sebagai bahan bakar nabati untuk keperluan dalam negeri sebagai biodiesel. Tujuan penelitian ini adalah mengetahui daya saing CPO Indonesia dalam perdagangan global dan mengetahui parameter persyaratan mutu CPO dan biodiesel. Metode analisis daya saing menggunakan metode Revealed Comparative Advantage (RCA), sedangkan analisis potensi kualitas CPO sebagai biofuel dilakukan dengan menganalisis Standar Nasional Indoensia (SNI). Perdagangan CPO dalam pasar global dikuasai oleh Indonesia dengan pangsa pasar 50% dan Malaysia 25,6%, dengan tren perdagangan relatif menurun dalam 10 tahun terakhir (2010-2019) sebesar -6,91%. Tingkat daya saing produk CPO Indonesia pada tahun 2019 sangat kuat, namun secara rata-rata dalam 10 tahun terakhir, tingkat daya saing CPO Indonesia tidak lebih baik dari Malaysia. Indonesia memiliki SNI 01-2901-2006 dan SNI 7182:2015 sebagai penentu kualitas produk CPO dan biodiesel yang dikembangkan di Indonesia, sehingga CPO dan biodiesel yang dihasilkan memenuhi aspek keamanan dan keselamatan ketika digunakan oleh konsumen.Kata kunci: crude palm oil (CPO), daya saing, kualitas, Standar Nasional Indonesia (SNI)

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