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.

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.

scholarly journals EXPLORING INDONESIA-PARAGUAY TRADE POTENTIALS: A REVEALED COMPARATIVE ADVANTAGE APPROACH

2016 ◽  
Vol 12 (1) ◽  
pp. 54-64
Author(s):  
Sulthon Sjahril Sabaruddin ◽  
Sihar Tambun
Keyword(s):  
Comparative Advantage ◽  
Bilateral Trade ◽  
Trade Barriers ◽  
Revealed Comparative Advantage ◽  
Trade Relations ◽  
Index Analysis ◽  
Export Competitiveness ◽  
Comparative Advantages ◽  
Trade Potentials ◽  
Revealed Comparative Advantage Index

Artikel ini akan menganalisis potensi perdagangan bilateral antara Indonesia-Paraguay berdasarkan daya saing ekspor masing-masing. Tulisan ini dalam analisisnya menggunakan Comparative Advantage Index untuk tahun 2012 yang diperoleh dari World Integrated Trade Solution (WITS). Makalah ini mengungkapkan bahwa ada peluang besar bagi kedua negara untuk lebih memperkuat hubungan perdagangan bilateral. Berdasarkan analisis RCA Index, diungkapkan bahwa secara umum kedua negaratelah mengekspor komoditas mereka berdasarkan keunggulan komparatif masing-masing, namun bagaimanapun ekspor kedua Negara saat ini tidak mencerminkan potensi mereka,  Paraguay (tidak untuk Indonesia) yang sepuluh komoditas unggulannya dengan keunggulan komparatif yang kuat tidak dapat menembus pasar kedua belah pihak. Studi ini menyarankan kedua Negara harus menghapus hambatan perdagangan mulai dengan menyediakan akses untuk 10 komoditas ekspor dengan keunggulan komparatif kuat untuk masuk di kedua negara. Langkah ini bias menjadi batuloncatan menuju penguatan hubungan perdagangan bilateral.   This paper attempts to analyze the Indonesia-Paraguay bilateral trade potentials based on their respective export competitiveness. The analysis uses the Revealed Comparative Advantage Index for year 2012 obtained from World Integrated Trade Solution (WITS). The paper reveals that there are huge opportunities for both countries to further strengthen bilateral trade relations. Based on the RCA Index analysis, the paper revealed that in general both countries have exported their commodities based on their respective comparative advantages, but however both countries current exports still do not reflect their potentials as most for Paraguay (none for Indonesia) of the top ten commodities with the strongest comparative advantage were unable to penetrate both sides market. This study suggests both countries should remove trade barriers starting by providing access for the top 10 export commodities with the strongest comparative advantage to penetrate in both countries. This step could be a stepping stone towards strengthening bilateral trade relations.

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.

scholarly journals Development of Trade Relations of Bosnia and Hercegovina with Slovenia: Different Aspects and Characteristics

2019 ◽  
Vol 65 (3) ◽  
pp. 40-49
Author(s):  
Snježana Brkić
Keyword(s):  
Comparative Advantage ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Trade Intensity ◽  
Industry Specialization ◽  
Trade Relations ◽  
Export Structure ◽  
Functional Aspects ◽  
The Republic ◽  
Trade Analysis

AbstractThe paper is aimed at identifying characteristics of trade relations of Bosnia and Herzegovina (BiH) with the Republic of Slovenia (Slovenia) in order to contribute to determining the position of BiH in its bilateral trade. The foreign trade analysis has been performed in the context of the changing trade regime between the two countries, thereby including both institutional and functional aspects of bilateral trade relations development. Different trade indicators have been calculated and interpreted for the period of 2003-2017 and/or for selected years which were identified by a change in the institutional regulations of mutual trade flows. The research results indicate increasing trade intensity between the two countries, with almost balanced export and import flows and with prevailing inter-industry trade. The trade performance of BiH has significantly improved, with increasing intra-industry specialization and trade. However, the export structure and comparative advantage pattern are not favourable toward BiH, which points to the need for improving the country’s position in its trade with Slovenia.

scholarly journals Potential Gains to New Zealand From CPTPP Membership

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.

India will increase barriers to Chinese investment

2021 ◽  
Keyword(s):  
Bilateral Trade ◽  
Western Himalayas ◽  
Content Type ◽  
Chinese Investment ◽  
China And India ◽  
Japanese Investment ◽  
Large Numbers ◽  
No Man's Land ◽  
India And China

Significance China and India, which have long had difficult relations, have only partially disengaged from a border stand-off in the Western Himalayas that began in May 2020. Although bilateral trade is up this year, several deals for China to invest in Indian businesses are now frozen. Impacts India and China will maintain large numbers of troops along their mutual border, with a reduced no man’s land between them. Delhi will increase defence purchases from Washington and other key partners. Western and Japanese investment in India’s tech sector will grow markedly.

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.

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