The Comparative Advantages of Manufacturing Industry of Serbia

2017 ◽  
pp. 81-108
Keyword(s):  
International Trade ◽  
Czech Republic ◽  
Comparative Advantage ◽  
Manufacturing Industry ◽  
Food Products ◽  
International Market ◽  
Processing Industry ◽  
Comparative Advantages ◽  
Balassa Index

In this chapter, the authors have also pointed out to a fact that the Serbian processing industry has been encumbered by problems from the past, lack of investments, innovation and research, which has a restrictive effect on the competitiveness, inclusion on international market and adjustment to market regularities. After reading this chapter, it will be clear which sectors in Manufacturing Industry of Serbia, more precisely Manufacture of Food Products and Beverages industry have a positive comparative advantage in long-term interval, i.e. which ones are competitive on international market. Readers will find out that the Serbian Manufacture of Food Products and Beverages industry has a surplus in international trade. They will understand how could be kept track of the changes in export value of Manufacture of Food Products and Beverages industry through the Balassa index (RCA), Lafay (LFI) and the modified index of comparative advantage (Sm) and specialization in international trade, by using the Grubel Lloyd's index (GL) on international market. They will be introduced to the examples of food industry in Czech Republic, Hungary, Slovenia, Turkey, China and Croatia, and will understand specificities and the effects of implemented transformations in these countries.

scholarly journals Economic analysis of exporting Serbian honey

2018 ◽  
Vol 21 (7) ◽  
pp. 929-944 ◽  
Author(s):  
Svetlana Ignjatijević ◽  
Ivan Milojević ◽  
Rosa Andžić
Keyword(s):  
Comparative Advantage ◽  
Transition Period ◽  
Economic Implications ◽  
Complex Issue ◽  
Comparative Advantages ◽  
Exchange Character ◽  
Quantitative Indicators ◽  
Balassa Index ◽  
The Eu

Researching competitiveness of Serbia’s honey sector represents an introduction into a complex issue of dynamic changes with complex heterogenic and long term socio-economic implications. Tracking changes of comparative advantages in export during Serbia’s transition period and accession to the EU is significant for viewing the effects that trade liberalization and integration in international streams have on the sensitive honey sector. The research started from indicators of demand and level of foreign trade in the EU. Quantitative indicators of Serbia’s honey export on European market were shown in order to confirm Serbia’s potential and dominant presence. Research subject of this paper is the analysis of Serbia’s comparative advantage in exporting honey and specialization in international trade with the EU. The Balassa index, Revealed comparative advantages index and Revealed symmetric comparative advantage index were used with the goal to measure the level of Serbia’s comparative advantage, Grubel Lloyd Index and Trade Balance Index were used to measure the specialization level. Research results point to a positive comparative advantage value in exporting Serbia’s honey to EU and inter-industry exchange character.

scholarly journals STATUS OF CATTLE AND BEEF EXTERNAL TRADE OF POLAND AND HUNGARY OUTSIDE THE EUROPEAN UNION BETWEEN 2002 AND 2015

2017 ◽  
Vol XIX (2) ◽  
pp. 165-170
Author(s):  
Kornélia Mészáros ◽  
Enikő Lencsés
Keyword(s):  
European Union ◽  
International Trade ◽  
Comparative Advantage ◽  
The European Union ◽  
External Trade ◽  
Beef Production ◽  
Comparative Advantages ◽  
Special Attribute ◽  
Balassa Index ◽  
Target Markets

Both Hungary and Poland are net exporter in cattle and beef trade. Because of the large Polish and Hungarian supply these countries cannot sell all products on domestic and EU single markets. Cattle and beef production of both countries have to be sold on non-EU markets. These markets have a special attribute because import of cattle and beef to EU is regulated but the export to these countries is not under European limitation. This special attribute results in the fact that there are less available scientific indexes to use studying the international trade. In this paper we aimed to examine the comparative advantages of Hungarian and Polish cattle and beef export to non-EU markets between 2002 and 2015. Out analysis based primary on Balassa index (RCA) which is compared with the share of product export of the reference countries in their entire export. Secondary, the Revealed Symmetric Comparative Advantage (RSCA) was used as a correction of RCA (makes the RCA symmetrical). Primary we established that both studied countries have the same non-EU target markets with the highest importance of Turkey and Russia. During the examined period several changes were resulted, for example the decrease of Turkish market and the Russian embargo. These changes had an effect on comparative advantages.

scholarly journals Competitiveness analysis of Czech agrarian foreign trade in the context of world agrarian market and agrarian trade of EU-27 countries

2010 ◽  
Vol 58 (6) ◽  
pp. 503-514
Author(s):  
Miroslav Svatoš ◽  
Luboš Smutka
Keyword(s):  
World Market ◽  
View Point ◽  
Eu Countries ◽  
Bcg Matrix ◽  
The World ◽  
Comparative Advantages ◽  
Two Stages ◽  
Balassa Index ◽  
The Eu

This paper analyses the commodity structure of Czech (CR) agrarian trade in relation to the EU countries. An emphasis is put on comparative advantages of particular aggregations from the view-point of their application on the EU internal market. This analysis is based on an evaluation of comparative advantages by means of a modified Balassa index. It is studied in two stages, for the internal EU market and the world market. The analysis results are then shown in a graph. Subsequently, the authors implement an idea arising from a BCG matrix on the results of the graphic presentation. The aim is to identify those aggregations (SITC, rev. 3) which are or have a potential to be a pillar of agri-business (ie, the “cash cows” and “stars”), and vice versa to show the aggregation which are non-prospective in the long term or problematic (ie, the “dogs” and “problem children”). As start are identified as those aggregations which are characterised by the highest growth rate of comparative advantage value. From the analysis results, changes are apparent if we compare the CR trade commodity structure in relation to the EU countries. Findings also concern the development of comparative advantages and following CR specialisation on trade with certain aggregations.

scholarly journals Structure and Determinants of Intra-Industry Trade in Agro -Food Sector of Bosnia and Herzegovina

2017 ◽  
Vol 3 (3) ◽  
pp. 154
Author(s):  
Vesna Mrdalj
Keyword(s):  
International Trade ◽  
Bosnia And Herzegovina ◽  
Transition Period ◽  
Final Analysis ◽  
Food Products ◽  
Food Sector ◽  
Industry Trade ◽  
Unit Value ◽  
Comparative Advantages ◽  
Well Data

This paper aims to contribute to a better understanding of the structure and determinants of intra –industry trade specialization in agro food sector of Bosnia and Herzegovina over the transition period. The empirical analysis based on calculation of the following indicators: Grubel – Lloyd index (GL), Revealed Comparative Advantages (RCA indicator) and Relative unit value (RUV indicator). In order to show the level of intra-industry trade specialisation and to examine comparative advantages at sectoral level, as well for individual product group, are calculated Grubel – Lloyd index and RCA indicator. RUV indicator is used for analysis of two components of total intra-industry trade (TIIT); horizontal intra – industry trade (HIIT) and vertical intra- industry trade (VIIT) of agro-food products in Bosnia and Hercegovina. The analysis and calculations of above mentioned indicators are conducted using the data about international trade of agro-food products in Bosnia and Hercegovina for period of time 2008-2015, as well data at 4 – digit level, classified according to HS (Harmonised System). The final analysis in this paper is finished through applying K - means cluster analysis. K - means method was used for identificiation of different clusters of agricultural and food commodity groups related to comparative advantages, level of specialization in intra – industry trade, as well as the ratio between unit value export and unit value import. The emprical results indicated that GL index for observed period at sectoral level is lower than 50 %. The values of RCA indicator for agro-food sector of Bosnia and Herzegovina in international trade and to important trade markets indicate lack of comaparative advantages. In the structure of intra – industry trade is dominated vertical specialization.

Identification of Comparative Advantages of Agricultural Products and Products of Processed Food Sector of Serbia

2017 ◽  
pp. 59-80
Keyword(s):  
Foreign Trade ◽  
Comparative Advantage ◽  
International Market ◽  
Agricultural Products ◽  
Transfer Of Knowledge ◽  
Processed Food ◽  
Food Sector ◽  
Developmental Problems ◽  
The Third ◽  
Comparative Advantages

In the third chapter, the authors were studying the competitiveness and comparative advantage of agricultural products and products of processed food sector of Serbia on international market. Readers will be familiar with the foreign trade exchange of agricultural products and products of processed food sector in the period 2005-2015. They will find out for which products the indices of comparative advantage of export have a positive value and will understand the connection with a surplus in foreign trade exchange of agricultural products and products of processed food sector. Readers will be informed on products that prevail in export, i.e. will perceive the export potential of Serbian food industry. They will see which sectors aren't sufficiently propulsive and need to provide an adequate support in the future. Readers will be familiar with developmental problems of agri-food sector of other countries and will understand the significance of transfer of knowledge and experience in the development of processed food sector of Serbia.

scholarly journals The competitiveness and comparative advantage of the Slovak and the EU agri-food trade with Russia and Ukraine

2009 ◽  
Vol 55 (No. 8) ◽  
pp. 375-383 ◽  
Author(s):  
A. Qineti ◽  
M. Rajcaniova ◽  
E. Matejkova
Keyword(s):  
Comparative Advantage ◽  
Significant Variation ◽  
Slovak Republic ◽  
Trade Patterns ◽  
Food Trade ◽  
Trade Specialization ◽  
Comparative Advantages ◽  
Over Time ◽  
Balassa Index ◽  
The Eu

The paper investigates comparative advantages and competitiveness of Slovak and the EU 27 agri-food trade in markets of two countries: Russia and Ukraine. Our aim is to see the dynamics of the agri-food trade for the analyzed countries especially in the post-accession period. Applying a trade dataset from the EUROSTAT and based on the approach applied by Bojnec and Fertő (2006), we describe the pattern of agri-food trade in Slovakia and the EU using the Balassa index. The extent of trade specialization exhibits a declining trend in the country. It has lost comparative advantage for a number of product groups over time. The indices of specialization have tended to converge. For the particular product groups, the indices display a greater variation. They are stable for the product groups with comparative disadvantage, but the product groups with strong comparative advantage show a significant variation. There are also shown different tendencies for different markets i.e. the trade patterns between the Slovak Republic and the EU 27 with Russia and Ukraine.

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.

scholarly journals Export competitiveness: Assessment through the Balassa index (the case of Armenia)

2018 ◽  
Author(s):  
Arpine Sargsyan
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Global Market ◽  
Practical Significance ◽  
Competitive Advantages ◽  
Goods And Services ◽  
Export Competitiveness ◽  
The Republic ◽  
Balassa Index

The competitiveness of domestic products at the regional or global market is one of the cornerstones of a country’s internationalcompetitiveness. In this regard, the assessment and analysis of the competitiveness of a country’s international trade becomes an important issue. Thus, development and diversification of the export potential of the country is viewed as one of the most important directions of the international trade policy of the given country. Therefore, another important task is the specialization of the country in the most efficient and competitive segments of the economy. The above-mentioned circumstances embody the fact, that the role of quantitative assessment of potential competitive advantages is important, as it allows determining to what extent certain factors influence on the formation of export capacity in the country. The main objective of the study is to determine the role of export competitiveness in the process of competitive advantages formation of a country. This study mainly focuses on quantitative analysis based on the calculation of Balassa index, determining the extent to which a country has a comparative advantage in producing and exporting certain goods. The study presents the example of the Republic of Armenia, the study covers the period between 2002- 2016. Based on the index calculation, it can be determined whether the country has "revealed" comparative advantage or not. The practical significance of the study lies in the fact that its main findings and conclusions arising from it can be used in assessing the export competitiveness of not only Armenia, but also for other countries or groups of countries.The outcomes and implication of the research can be used to improve the competitiveness of goods and services in the global market.

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).

Assessing the transformation of a macro-region industrial complex on the basis of balanced development indices

2020 ◽  
Vol 18 (5) ◽  
pp. 829-845
Author(s):  
O.P. Smirnova
Keyword(s):  
Economic Development ◽  
Industrial Complex ◽  
Balanced Development ◽  
Strategic Cooperation ◽  
Comparative Advantages ◽  
Federal Districts ◽  
Balassa Index ◽  
Available Resources

Subject. This article discusses the balanced economic development of the macro-region industrial complex through the most efficient use of available resources. Objectives. The article aims to assess the diversification of the industrial complex of macro-regions based on calculation of three indices and highlight key areas of perspective specialization of macro-regions. Methods. For the study, I used the Herfindahl–Hirschman index, Hoover–Balassa index, and the relative specialization index in the context of federal districts, or macro-regions. Results. The article finds that many macro-regions have similar comparative advantages, which means interregional synergy and opens up opportunities and potential for strategic cooperation between regions. Conclusions. The revealed comparative advantages of macro-regions can be used to develop a long-term innovation programme for the industrial complex.

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