Comparative advantages in clothing exports: India faces threat from competing nations

2018 ◽  
Vol 28 (5) ◽  
pp. 518-540 ◽  
Author(s):  
Lalit Mohan Kathuria
Keyword(s):  
Comparative Advantage ◽  
Low Cost ◽  
Rank Correlation ◽  
Value Added ◽  
High Growth ◽  
Economic Life ◽  
Revealed Comparative Advantage ◽  
Content Type ◽  
Export Structure ◽  
Comparative Advantages

PurposeManufacturing 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/approachThis 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.FindingsThe 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/valueThis 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.

India's Export Competitiveness With BIMSTEC Countries

2020 ◽  
pp. 146-168
Author(s):  
Gurpreet Kaur
Keyword(s):  
Comparative Advantage ◽  
High Growth ◽  
Export Growth ◽  
Export Structure ◽  
Demand Growth ◽  
Export Sector ◽  
Ideal Situation ◽  
Export Competitiveness ◽  
Comparative Advantages ◽  
Challenges And Opportunities

This chapter analyzes the export competitiveness of India against BIMSTEC countries. To identify the comparative advantage/disadvantage of India's exports with BIMSTEC countries, revealed comparative advantage (RCA) approach is used at HS 6-digit. It provides an understanding of challenges and opportunities that India's export sector faces as it becomes rapidly integrated into global markets. The study identifies those export categories in which India loses, gains, or maintains its comparative advantage with following the stages of comparative advantages. The study concludes that India's export sectors witnessed competitive positioning of some of its product, and these trends have not been uniform across all Industries. Rapid export growth of some sector does not imply that the sector is displaying high demand growth in BIMSTEC markets. In an ideal situation, there would be the emergence of an export structure that has a heavy concentration in those industries that exhibit high growth in the BIMSTEC market.

scholarly journals Trade intensity and revealed comparative advantage: an analysis of Intra-BRICS trade

2018 ◽  
Vol 13 (5) ◽  
pp. 1182-1195 ◽  
Author(s):  
Javeria Maryam ◽  
Umer Jeelanie Banday ◽  
Ashok Mittal
Keyword(s):  
Comparative Advantage ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Trade Intensity ◽  
Revealed Comparative Advantage ◽  
Holistic View ◽  
Content Type ◽  
Brics Countries ◽  
Comparative Advantages ◽  
India And China

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.

Revealed comparative advantage for US textiles and apparel

2019 ◽  
Vol 29 (4) ◽  
pp. 462-478 ◽  
Author(s):  
Zahra Saki ◽  
Marguerite Moore ◽  
Ivan Kandilov ◽  
Lori Rothenberg ◽  
A. Blanton Godfrey
Keyword(s):  
Comparative Advantage ◽  
Bilateral Trade ◽  
Rank Correlation ◽  
Coding System ◽  
Revealed Comparative Advantage ◽  
Short Term ◽  
Content Type ◽  
The Us ◽  
New Industry

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.

Value communication: low-cost marketing initiatives for “Guru Ki Bani 58282”

2013 ◽  
Vol 3 (3) ◽  
pp. 1-9
Author(s):  
Neeraj Pandey ◽  
Gaganpreet Singh
Keyword(s):  
Interactive Voice Response ◽  
Low Cost ◽  
Value Added ◽  
Subject Area ◽  
Marketing Management ◽  
Digital Marketing ◽  
Content Type ◽  
Mba Students ◽  
Marketing Team ◽  
Value Communication

Subject area Pricing, digital marketing, marketing management and strategic marketing. Study level/applicability The case can be used for pricing or digital marketing courses as well as marketing management courses to MBA students and/or for management development programmes. Case overview Goldfinch Mobile Solutions, a Hong-Kong based value added services (VAS) and gaming platform provider, had an exclusive tie up with Bharti Airtel in India for providing value added voice applications on an interactive voice response system (IVRS) platform. The Goldfinch flagship service is “Guru Ki Bani” which may be subscribed to by dialing the short code 58282. This “58282” service has a repository of all Sikh religion daily prayers, religious songs, teachings, stories from Guru's life and similar information that is derived from the Sikh Holy book Guru Granth Sahib Ji. As per mutual agreement between Goldfinch Mobile Solutions and Bharti Airtel, the telecom operator had the responsibility to promote Goldfinch's Guru Ki Bani service amongst its subscriber base through its below the line (BTL) promotional channels such as short messaging service (SMS), outbound calls, cell information, notification SMS after call and above the line (ATL) activities such as posters, leaflets, print, promoters, regional TV, outdoors, etc. The revenue sharing arrangement between Airtel and Golfinch was in the ratio of 75 percent and 25 percent. However, with recent changes in the policies of Telephone Regulatory Authority of India (TRAI), promotional marketing used by telecom operators has been constrained. Declining customer share, decreasing profits (after Bharti Airtel halted promotions) and increasing organization cost per customer have made MD and CEO Mr Newton Bubber think of various options including low-cost marketing initiatives besides digital marketing to promote Guru Ki Bani services. Value communication to its huge potential customer base, i.e. 184.19 million Bharti Airtel subscribers was another challenge facing Mr Newton and his marketing team at Goldfinch. Expected learning outcomes The case enables students to learn the concepts and application of value creation, effective value communication, price waterfall analysis, importance of costing parameters in pricing decisions, low-cost marketing strategies and digital marketing. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

scholarly journals Comparative Advantages of Jute Export in Bangladesh, China and India

2020 ◽  
Vol 7 (2) ◽  
pp. 183-190
Author(s):  
Shaima Chowdhury Sharna ◽  
M Kamruzzaman
Keyword(s):  
Comparative Advantage ◽  
Global Market ◽  
Revealed Comparative Advantage ◽  
New Markets ◽  
China And India ◽  
The Past ◽  
The World ◽  
Comparative Advantages

The aim of this study was to review the trend of production and export of jute as well as comparative advantages of jute export of Bangladesh, China and India. In the case of production, India is the leading country which is followed by Bangladesh, China, Nepal, Zimbabwe, Uzbekistan, Egypt and others. However, Bangladesh plays the supreme role over other countries in the world for exporting jute. Jute export fluctuated erratically over the past four decades in these three most jute exporting countries. The Revealed Comparative Advantage (RCA) has been enumerated for comparing the jute export advantages in the global market. Bangladesh always enjoys greater comparative advantages than China and India although the revealed comparative advantages are less in recent years than those were one decade ago. But it can’t catch the high-value market because exporters have mainly focused on raw jute while jute goods have high potentiality. The recommended issues urge to enhance the productivity of jute cultivation, inaugurate more diversified products, and explore new markets for exports. Res. Agric., Livest. Fish.7(2): 183-190,  August 2020

scholarly journals The duration of global agri-food export competitiveness

2017 ◽  
Vol 119 (6) ◽  
pp. 1378-1393 ◽  
Author(s):  
Štefan Bojnec ◽  
Imre Fertő
Keyword(s):  
Comparative Advantage ◽  
Agricultural Land ◽  
Survival Rates ◽  
Revealed Comparative Advantage ◽  
Data Set ◽  
Term Survival ◽  
Content Type ◽  
Country Level ◽  
Export Competitiveness

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.

scholarly journals Comparative advantage, economic structure and growth: The case of Senegal

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Jiri Sejkora ◽  
Ondrej Sankot
Keyword(s):  
Comparative Advantage ◽  
Economic Structure ◽  
Manufacturing Industries ◽  
Gdp Growth ◽  
Revealed Comparative Advantage ◽  
Gdp Growth Rate ◽  
Comparative Advantages ◽  
Export Shares ◽  
Growing Economy

Background: Using a concept of revealed and latent comparative advantage, this article identifies relatively productive industries and industries with great potential in the slow-growing economy of Senegal. The identification of such industries allows for economic structure adjustment resulting in a higher gross domestic product (GDP) growth rate.Aim: The aim of the study is to identify Senegalese long-term revealed comparative advantages and to estimate Senegalese latent comparative advantages. The analysis is focused solely on manufacturing industries because industrialisation serves as an engine of growth in developing countries.Setting: The analysis is carried out on endowment structure and international trade data (1995–2015) of Senegal and appropriate comparator economies (Tanzania, Cambodia, Lao, Vietnam and Cape Verde).Methods: To identify revealed comparative advantages, we calculate the normalised revealed comparative advantage index. To estimate latent comparative advantages, we employ a growth identification and facilitation framework. The methodology is slightly modified because the estimation is based on long-term revealed comparative advantages comparisons (rather than export shares comparisons).Results: We argue that the relatively productive manufacturing industries (with revealed comparative advantage) include chemicals and manufactured goods classified chiefly by various materials. Furthermore, Senegal may have unexploited potential (i.e. latent comparative advantage) in footwear and particularly in apparel production.Conclusion: In order to accelerate GDP growth rate, Senegal should focus on developing the above mentioned industries to align its economic structure with the comparative advantages and also to promote industrialisation.

Applicability of the high performance organization (HPO) framework in the Chinese context

2017 ◽  
Vol 8 (1) ◽  
pp. 22-39 ◽  
Author(s):  
André de Waal ◽  
Amy Wang
Keyword(s):  
High Performance ◽  
Low Cost ◽  
Research Question ◽  
Value Added ◽  
Performance Practices ◽  
Content Type ◽  
Chinese Context ◽  
Chinese State ◽  
Asian Context ◽  
High Performance Organization

Purpose In recent years, China has shifted its competitive strategy from competing on low cost to producing higher value added products and services, and the country has made the promotion of business excellence a national strategic priority. As a consequence, Chinese organizations need to know the factors that will make them world-class companies. Until recently, not much research has been done into these factors in the Chinese context. The few studies available unfortunately were mainly done only into specific elements of excellence and specific improvement techniques; a holistic and scientifically validated framework for creating high performance organizations (HPOs) cannot be found. The purpose of this study is to evaluate such a framework, which was quite recently developed, for the Chinese context. Design/methodology/approach A possible way forward is to use the HPO framework which was validated in earlier studies for the Asian context. In this paper, this research question is answered: Can the HPO framework be used to help Chinese organization to evaluate and improve the factors for excellence in the Chinese context? The study used a questionnaire which was distributed to respondents of a Chinese state-owned manufacturing enterprise. The results were discussed during a workshop to arrive at the main attention points for the organization. Findings The HPO framework was validated for the Chinese context and yielded valuable recommendations for improvement for the case company. Originality/value This study fills the gap which currently exists in empirical research about organization performance practices in Chinese. The study also has practical implications as management of Chinese state-owned enterprises, and possibly other Chinese companies, are now able to undertake focused improvement actions.

scholarly journals KEUNGGULAN SUB SEKTOR PERIKANAN DAN PARIWISATA BAHARI DALAM STRUKTUR PEREKONOMIAN WILAYAH PULAU-PULAU KECIL

2017 ◽  
Vol 8 (2) ◽  
pp. 145
Author(s):  
Mira Mira
Keyword(s):  
Comparative Advantage ◽  
Profile Analysis ◽  
Value Added ◽  
Economic Structure ◽  
Small Islands ◽  
Analysis Method ◽  
Marine Tourism ◽  
The Third ◽  
Study Results ◽  
Comparative Advantages

Tujuan dari penelitian ini adalah menganalisis bagaimana kinerja sub sektor perikanan dan sub sektor pariwisata bahari di wilayah yang karakteristiknya pulau-pulau kecil seperti di Kepulauan Seribu. Kinerja tersebut meliputi apakah sub sektor pariwisata bahari dan perikanan menjadi sektor unggulan/terbelakang/potensial/berkembang, apakah dua sub sektor tersebut menjadi sub sektor yang prospektif dan sub sektor yang memiliki keunggulan komparatif. Penelitian ini dilakukan pada tahun 2011 di Kepulauan Seribu. Metode analisis pergeseran struktur perekonomian digunakan dalam penelitian ini.  Hasil analisis pada komponen pertumbuhan pangsa wilayah, hanya sub sektor perikanan yang memiliki  keunggulan komparatif yang berarti bahwa hanya sub sektor ini yang mampu bersaing. Pada sektor wisata bahari, pertambangan dan penggalian, industri, transportasi dan komunikasi, dan kontruksi di Kepulauan Seribu tidak memiliki keunggulan komparatif, karena masih banyaknya komponen input yang diimpor dari sektor tersebut. Selanjutnya, hasil analisis profil pertumbuhan mengindikasikan bahwa hanya sub sektor perikanan yang masuk pada kuadran pertama yang artinya sektor-sektor unggulan pada wilayah Kepulauan Seribu. Sektor pariwisata bahari dari hasil analisis profil pertumbuhan termasuk pada kuadran ketiga, dimana merupakan sub sektor yang potensial yang dikembangkan di Kepulauan Seribu. Kategori sektor potensial mengandung pengertian bahwa sektor tersebut relatif lambat pertumbuhannya, oleh karena itu masih diperlukan dorongan dari pemerintah agar`dapat menjadi sektor unggulan. Dorongan tersebut dapat berupa kebijakan dari pemerintah dan penguatan penguasaan teknologi tepat guna.Title: Performance of Fisheries and Tourism Sub Sectors in Economic Structure of Small Islands AreaThe purpose of this study was to analyze how the performance of fisheries and marine tourism sub sectors in the area characterised by small islands as in the Seribu Islands. The particular performances were included whether the marine tourism and fisheries sub sectors into leading sectors / backward/ potential / developing, whether the two sub-sectors into sub-sectors prospective and sub-sectors comparative advantages. The research was conducted in 2011 in the Seribu Islands. A shift classic  analysis method was used in this study. Results of the region share growth component analysis showed that only the fisheries sub-sector has a comparative advantage, which means the only sub-sector to compete. In the marine tourism subsector, mining and quarrying, industry, transport and communications, and construction in the Seribu Island do not have a comparative advantage, because there are many imported components inputs from that particular sectors. From the growth profile analysis results indicate that only the fisheries sub-sector was in the first quadrant, indicating that this sector was considered a superior sector in the region. Meanwhile, marine tourism sub sector was in the third quadrant, indicating that this sector was considered a potential sector to be developed in this region. In terms of growth the potential sectors indicated a relatively low growth in the region; therefore, government should push this particular sector to be a superior sector. Value added of superior sector should be improved through strengthening the locally appropriated technology.

scholarly journals Brazil's Comparative Advantages and Specialization Dynamics in Agri-food Trade

2021 ◽  
Vol 13 (2) ◽  
pp. 121-139
Author(s):  
Ivo Zdráhal ◽  
Martin Hrabálek ◽  
Petr Kadlec ◽  
Oldřich Krpec
Keyword(s):  
Comparative Advantage ◽  
Food Products ◽  
Revealed Comparative Advantage ◽  
Ceteris Paribus ◽  
Food Trade ◽  
Finite Structure ◽  
Comparative Advantages ◽  
External Shape

In the last decades Brazil has become a global agri-food powerhouse. The article interrogates the shape and its stability of revealed comparative advantages in 46 of its agri-food products for the period 1995-2017. The results support the argument that the Brazil's agri-food trade was formed by comparative advantages of specific agri-food sectors. The results show that the external shape of agri-food specialization has strengthened, first since early 2000s and second when the trade shifted more towards China. The pattern was stable according revealed comparative (dis)advantage of particular products, more changes occurred in each product's score and in ranking of products. Products without initial comparative advantage seem to remain uncompetitive whilst the products with strong initial comparative advantage continue to be competitive. The persistence in distribution has increased. This suggests, the shape of Brazil's revealed comparative advantage in agri-food trade has evolved towards its finite structure (ceteris paribus).

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