scholarly journals Investigating Pakistan’s Revealed Comparative Advantage and competitiveness in Cotton Sector

2019 ◽  
Vol 5 (1) ◽  
pp. 125-134
Author(s):  
Muhammad Shahid Maqbool ◽  
Hafeez ur Rehman ◽  
Furrukh Bashir ◽  
Rashid Ahmad

Cotton sector, one of the most important sectors of agriculture, plays a pivot role in the socio-economic uplift of Pakistan as its contribution to agriculture value addition is 5.5 % and to GDP is 1 %. It along with low wage cost also ensures the massive availability of raw material for textile industry which enables Pakistan to attain competitiveness in the world market. The aim of present study is ,therefore, to measure the export competitiveness in cotton sector of Pakistan by utilizing a set of Revealed competitive advantage and Revealed comparative advantage (RCA) indices such as RCA, RCA#, Symmetric Comparative index (RSCA),  Revealed Import Advantage index (RMA), Net export index (NEI)and  Revealed Trade Advantage index (RTA)  vis-a-vis world trade. The data was taken from International Trade Center (ITC) UN-COMTRADE Statistics for Pakistani cotton from 2003-17. The results of the study explored that Pakistan had a comparative and competitive advantage in cotton exports, while comparative disadvantage in cotton imports. Moreover, Pakistan had net competitive advantage in cotton sector.The study suggests that   there should be more  emphasis on Infrastructure, reduction in the cost of production, utilities and  finance, use of modern technology, investment in agricultural sector and marketing in international market to boost the exports volume of cotton. Net export index (NEI), Revealed, Symmetric Comparative index (RSCA) (Larsen 1998), Vollrath index (1991) (RCA#), Revealed Import Advantage index (RMA) and Revealed Trade Advantage index (RTA).

2011 ◽  
Vol 331 ◽  
pp. 722-725
Author(s):  
Ai Qing Jiang ◽  
Rong Zhang

First the thesis analyzes the development situation of Shaoxing textile industry. Then three export evaluation indexes (international market share, trade competitiveness index, revealed comparative advantage index) were selected to analyze and prove the international competitiveness of Shaoxing textile and clothing. At last, it proves that Shaoxing textile and clothing has very strong competitive advantage and also puts forward several suggestions to strengthen this competitiveness.


2021 ◽  
Vol 11 (2) ◽  
pp. 153-166
Author(s):  
Rina Nadlrotul Musilah ◽  
Tursina Andita Putri ◽  
Anisa Dwi Utami

In the agricultural sector, the cost production structure determines the income level of the farmers as well as the industry competitiveness in the world market. Considering the position of rice as the main food commodity for Indonesian people, the government has set up a program namely UPSUS PAJALE which delivers subsidies for inputs such as seeds, fertilizer, and agricultural tools. This study aims to describe the paddy farming activities in Demak Regency and to analyze the cost structure of paddy production in the UPSUS PAJALE program in Demak Regency. A survey was conducted in five production centre areas involving 100 farmers. The results showed that modern technology is used in rice farming. Land costs and labour costs dominate the cost structure of rice production. Meanwhile, the total production cost has reached 22.518.314,86 IDR per hectare with the cash cost percentage is 72,17 % and the non-cash cost percentage is 27,83 %.


2021 ◽  
Vol 4 (4) ◽  
pp. 811-819
Author(s):  
Muhammad Shahid Maqbool ◽  
Furrukh Bashir ◽  
Hafeez Ur Rehman ◽  
Rashid Ahmad

The aim of this study is to examine the export performance and competitiveness of Pakistan's toy exports by using different indices of revealed comparative advantage. The data were looked at from the International Trade Centre (ITC) for Pakistan’s toys exports during 2004-2020. The results of this study show that Pakistan enjoyed a comparative advantage in exporting toys to the world market during 2004-2020, because the RCA index is greater than 1. The positive values of RSCA and LnRCA indicate that Pakistan had a CA in the concerned sector during 2004-2020. The study also observed that Pakistan had a competitive advantage by employing Vollrath index (RCA#). In addition, the revealed competitiveness index (RC) indicates that Pakistan experienced competitiveness in the toy export sector. The RMA index shows that Pakistan also enjoyed a comparative advantage in the imports of toys during 2004-2020. This means that Pakistan also imports these products from other economies of the world. The index of RTA describes that Pakistan had a net comparative advantage in this sector during analysis. TBI illustrates that Pakistan is the net-exporter in the toys and games sector in the global economy. Pakistan's toy manufacturers need to find new innovative and technologically advanced methods to stimulate domestic toy production and exports.


2009 ◽  
Vol 14 (2) ◽  
pp. 125-133 ◽  
Author(s):  
Waqar Akhtar ◽  
M. Sharif ◽  
Hassnain Shah

This paper examines the global competitiveness of Pakistan’s fruit exports (dates, mangoes, and oranges), using revealed comparative advantage (RCA). It also analyzes domestic consumption trends among selected fruits grown by major exporters. Our results indicate that Pakistan has a comparative advantage in fruit exports. Comparing the movement in comparative advantage indices for Pakistan with those of its main exporters/competitors demonstrates that Pakistan has a relatively high comparative and competitive advantage in the production of dates and mangoes. The increasing trend of competitiveness in Pakistan indicates that there is potential for higher growth; given that fruit exports are a potential source of higher exports earnings, there is a need to strengthen competitiveness in this sector.


2011 ◽  
Vol 133 (04) ◽  
pp. 48-48
Author(s):  
Jeffrey Winters

This article analyzes the energy identity crisis in some oil-producing countries. It highlights that the retail price for gasoline in countries such as Libya, Saudi Arabia, Bahrain, and Yemen was at or below the cost on the world market of the petroleum needed to produce it. However, Egypt went from an exporter of more than 300,000 barrels of oil a day in 1999 to a net importer beginning in 2009. And as a consequence, the prices for gasoline in Egypt went from below the raw material cost in 2006 to being comparable to those in the United States. Tunisia shifted from an exporter to an importer in 2000. Thanks to strong consumption growth, Bahrain has also seen its exports plummet from more than 30,000 barrels a day in the 1990s to around 3500 today. The Saudi consumption curve is climbing at about 4% per year, and unless the country can raise production above 11 million barrels a day, its exports will disappear by 2050.


2017 ◽  
Vol 11 (2) ◽  
pp. 227-246
Author(s):  
Nia Rosiana ◽  
Rita Nurmalina ◽  
Ratna Winandi ◽  
Amzul Rifin

Tingkat pertumbuhan produksi kopi dunia cenderung menurun dibandingkan dengan tingkat pertumbuhan konsumsi kopi dunia. Hal ini disebabkan oleh menurunnya produksi kopi di negara-negara penghasil utama. Hal ini berdampak pada jumlah kopi yang diekspor untuk pemenuhan kebutuhan kopi dunia. Penelitian ini menganalisis tingkat persaingan antar negara produsen utama dalam lima periode waktu dengan menggunakan analisis Revealed Comparative Advantage (RCA) dan Dynamic Revealed Comparative Advantage (DRCA). Hasil menunjukkan bahwa pada periode 2001-2003, rata-rata pertumbuhan daya saing antar negara paling tinggi dibanding periode lainnya. Hal ini dikarenakan adanya peningkatan ekspor yang cukup signifikan dari negara Honduras yang berdampak pada nilai RCA. Dalam periode 2012-2015, Colombia merupakan negara yang memiliki tingkat pertumbuhan daya saing paling tinggi karena peningkatan jumlah ekspor yang cukup signifikan. Perubahan daya saing dapat mempengaruhi perubahan posisi pasar ekspor suatu negara. Dalam periode 2012-2015, terdapat penurunan pangsa pasar yang terjadi di Vietnam, Ethiopia, India, Honduras, Guatemala dan Peru sedangkan peningkatan pangsa pasar terjadi di Brazil, Colombia, Indonesia, dan Uganda. Posisi Indonesia di pasar kopi dunia tahun 2015 yaitu failing stars dimana pangsa kopi Indonesia lebih tinggi dari pangsa kopi dunia. Peningkatan daya saing akan meningkatkan pangsa pasar suatu negara yang didukung oleh peningkatan teknologi, kualitas dan produktivitas kopi. The rate of world coffee production growth tends to decrease compared to the growth rate of world coffee consumption. This is due to the decline of coffee production in some major producing countries. This has an impact on the quantity of exported coffee to meet the demand of world's coffee. This paper analyzed the level of competition among major producing countries in five periods of time using the analysis of RCA and DRCA. The results showed that during the period 2001-2003,the average growth of competitiveness among countries was found to be the highest compared to other periods. This was due to a significant increase in export from Honduras which affected the value of RCA. During the period 2012-2015, Colombia became a country that achieved the highest growth rate of competitiveness due to the significant increase in the number of export. Change in competitiveness can affect the export market position of a country. During the period 2012-2015, the decline in market shared occurred in Vietnam, Ethiopia, India, Honduras, Guatemala, and Peru, while the increasing market share occurred in Brazil, Colombia, Indonesia, and Uganda. Indonesia’s position in the world coffee in 2015 was at failing stars in which the coffee share in that country was higher than in the world market. Increased competitiveness will enhance the market share of a country that is supported by improvement of the technology, quality and productivity of coffee.


2021 ◽  
Vol 7 (2) ◽  
pp. 281-290
Author(s):  
Muhammad Shahid Maqbool ◽  
Furrukh Bashir ◽  
Hafeez ur Rehman ◽  
Rashid Ahmad

This study aims at measuring the comparative advantage and competitiveness of the ASEAN-5 (Malaysia, Indonesia, Philippines, Singapore and Thailand) economies in the world market. The current study employed four indices of Revealed Comparative Advantage namely Revealed Comparative Advantage index (RCA), LnRCA, Vollrath index (RCA#) and Revealed Symmetric Comparative Advantage index (RSCA). The data for the analysis has been taken from International trade center UN-COMTRADE statistics for the exports of electrical machinery for these selected economies from 2003-2020. The findings of the analysis portray that Malaysia, Philippines, Singapore and Thailand had a comparative and competitive advantage, while Indonesia had a comparative and competitive disadvantage in the electrical machinery in the global economy. This study will be helpful for the policy makers to boost human capital formation and to increase technology transfer and innovation to enhance the competitiveness and comparative advantage.


2005 ◽  
Vol 40 (2) ◽  
pp. 36-50
Author(s):  
Pramod Kumar ◽  
P.S. Badal ◽  
Alka Singh

Horticultural commodities are becoming an increasingly important source of export earnings for a number of countries. India has taken a number of measures to boost the export of horticultural commodities. World Trade Organization (WTO) came into being on 1 January 1995, and this marked the beginning of a new era of international trade. Initially, it was expected that India would be a net beneficiary under this trade regime with greater access to the world market. Therefore, an attempt was made to examine the changing pattern in the commodity basket, comparative advantage and direction of trade in horticultural commodities in the post reform period. A total of 132 items registered an increase, both in quantity and value terms in the post-WTO period. The share of these commodities increased to 83 per cent in post-WTO period from a level of 67 per cent in pre-WTO period. All these commodities were classified into two broad categories on the basis of their value elasticities (EV) - (a) commodities with EV greater than unity, and (b) commodities with EV less than unity. It is relatively more paying to put export promotion efforts on the former category of exportables rather than the latter. The country continues to have comparative advantage in a number of horticultural commodities over the period. Contrary to the general perception, it was revealed that India does not have comparative advantage in a large number of horticultural commodities. In order to improve the comparative advantage, it is necessary to reduce the cost of production, improve productivity, create efficient post-harvest management and processing, provide infrastructural facilities and policy support. Processed horticultural commodities were exported mainly to developed nations especially Europe, America, Japan, and the UK, whereas fresh fruits & vegetables found greater share of markets in Gulf countries, ASEAN and SARRC nations. Future export promotion efforts must encourage adherence to quality standards by following good manufacturing practices (GMP), HACCP and SPS standards.


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