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

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.

2018 ◽  
Vol 13 (5) ◽  
pp. 1182-1195 ◽  
Author(s):  
Javeria Maryam ◽  
Umer Jeelanie Banday ◽  
Ashok Mittal

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.


2009 ◽  
Vol 48 (4II) ◽  
pp. 783-794 ◽  
Author(s):  
Muhammad Ilyas ◽  
Tahir Mukhtar ◽  
Muhammad Tariq Javed

With the gradual reduction in trade barriers led by the process of globalisation, more emphasis is now being placed on promoting export competitiveness. Asia is the home of many of the world’s top rice exporters. The food-price crisis has divided Asia into “rice haves” and “rice have-nots”. In order to describe the processes involved in securing and maintaining international competitiveness in rice exports, the present study has used the Balassa and White indices of revealed comparative advantage and revealed competitive advantage respectively. Results have revealed that Pakistan is the most competitive country in rice trade and ranks first in both agricultural product trade and total merchandise exports. JEL classification: C12, C43, Q17 Keywords: Asian Countries, Competitiveness, Revealed Comparative Advantage, Revealed Competitive Advantage.


2020 ◽  
pp. 0308518X2095733
Author(s):  
Sijing Ye ◽  
Changxiu Cheng ◽  
Changqing Song ◽  
Shi Shen

The development of trade research plays an important role in enhancing the understanding of the trade relationship structure, evolution and relevant driving factors. While there is little research on analyzing and visualizing bilateral trade patterns and the evolution of numerous kinds of commodities. In this paper, we respectively calculate revealed comparative advantage index (RCAI) of each traded commodity of China and USA in 2017. Then the RCAI of thousands of commodities have been mapped to a two-dimensional space and visualized in a grid system by using digital trade feature map method. On that basis, bivariate local spatial auto-correlation features between China – USA have been comprehensively depicted.


Author(s):  
Natalia Ishchukova ◽  
Luboš Smutka

This paper studies the issue of revealed comparative advantage in the case of the Russian foreign trade in agricultural products and foodstuffs. The objective of this study is to analyze specialization and the competitive performance of the Russian agricultural sector and to determine whether or not patterns of comparative advantage for Russia have undergone significant changes over the period 1998–2010.The analysis is performed using several measures of revealed comparative advantage: classical Balassa’s index, Vollrath’s index and Lafay index. Balassa’s index identified a group of products, which has relatively stable comparative advantage during the whole period. Among those products we can count cereals (wheat, barley, etc.), their by-products (for example bran of wheat) and products of their processing (cereals preparations, etc.), as well as oilseeds, vegetable oils and chocolate.Vollrath’s index showed that the number of products that have revealed competitive advantage was steadily growing during the period. Lafay index, used in the analysis by regions, showed that Russia has comparative advantages in relation to CIS countries and Asian countries due to its geographical location and good trade relations.Primary products have the comparative advantage in relation to EU and Asian countries. In relation to the Commonwealth of Independent States and Americas on the contrary the processed products have comparative advantages, while the most of primary products have comparative disadvantage.In relation to the whole world, analysis has also revealed a shift of comparative advantage from by-products (e.g. bran of wheat, sunflower cake etc.) in 1998–2001 to primary products in 2002–2010 (wheat, barley, whole cow milk, sunflower seed etc.).


2018 ◽  
Vol 7 (4) ◽  
pp. 280-292
Author(s):  
Anisul M. Islam

Bangladesh and India are two neighbouring countries in South Asia having strong political, diplomatic, trade and economic ties with each other. This article reviews and updates on the inter- and intra-industry trade relationship between these two countries using more recent data. More specifically, it examines the relative position of the two countries in global trade followed by trends and patters of bilateral trade using aggregative data. At a disaggregate level, the commodity composition of Bangladesh exports to and imports from India by major product categories is examined focusing on the revealed comparative advantage (RCA) to review and update the degree of inter-industry trade. Further, the Grubel–Lloyd index (GLI; Grubel & Lloyd, 1975 ) is examined to measure the degree of intra-industry trade by major commodity groups. The article finds that India has a much stronger relative position in the global trade vis-à-vis Bangladesh. India is also found to dominate Bangladesh in bilateral trade, resulting in a very large and persistent trade deficit of Bangladesh with India. At a disaggregated level, the article finds that India has a comparative advantage in more products than Bangladesh and that the GLI shows that the degree of intra-industry trade is almost negligible between the two countries.


2021 ◽  
Vol 251 ◽  
pp. 01102
Author(s):  
Weiwei Fu ◽  
Peifen Zhuang

This paper collects the data of China’s aquatic products from 2002 to 2018 and studies the relationship between the production agglomeration and export competitiveness of aquatic products. This paper calculates the production Concentration Rate (CR) which reflects the degree of agglomeration of aquatic products and the Revealed Comparative Advantage (RCA) index which reflects the export competitiveness of aquatic products, and then uses variable intercept model with fixed effects to empirically analyze the impact of production agglomeration of three main aquatic products (fish, crustacean and shellfish) on the export competitiveness. The results show that there is an obvious phenomenon of production agglomeration of aquatic products in China. Overall, the improvement of production agglomeration of aquatic products is conducive to the promotion of export competitiveness.


2020 ◽  
Vol 7 (2) ◽  
pp. 183-190
Author(s):  
Shaima Chowdhury Sharna ◽  
M Kamruzzaman

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


2017 ◽  
Vol 119 (6) ◽  
pp. 1378-1393 ◽  
Author(s):  
Štefan Bojnec ◽  
Imre Fertő

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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