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 Assessing the Fiscal Sustainability of Government Finances in European Countries

2013 ◽  
Vol 52 (1) ◽  
pp. 87-93
Author(s):  
Yuriy Melnykov
Keyword(s):  
Growth Rate ◽  
Time Series ◽  
Interest Rate ◽  
Unit Root ◽  
Statistical Approach ◽  
Fiscal Sustainability ◽  
European Countries ◽  
Gdp Growth ◽  
Gdp Growth Rate

This paper analyses the fiscal sustainability of government finances in the 27 EU countries and Norway using an empirical, statistical approach and ADF tests for a unit root in the time series of the differences between the GDP growth rate and the long-term interest rate, and the primary balance.

Applying the Fama and French three-factor model to analyze risk/reward in the Spanish REITs: an ARDL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhenyu Su ◽  
Paloma Taltavull
Keyword(s):  
Growth Rate ◽  
Factor Model ◽  
Explanatory Power ◽  
Gdp Growth ◽  
Size Factor ◽  
Content Type ◽  
Gdp Growth Rate ◽  
Fama And French ◽  
Three Factor

Purpose This paper aims to analyse the risk and excess returns of the Spanish real estate investment trusts (S-REITs) using various methods, though focusing primarily on the Fama-French three-factor (FF3) model, over the period from 2007Q3 to 2017Q2. Design/methodology/approach The autoregressive distributed lag model is used for the empirical analysis to test long-term stable relationships between variables. Findings The findings indicate that the FF3 model is suitable for the S-REITs market, better explaining the S-REITs’ returns variation than the traditional single-index capital asset pricing model (CAPM) and the Carhart four-factor model. The empirical evidence is reasonably consistent with the FF3 model; the values for the market, size and value are highly statistically significant over the analysis period, with 68.7% variation in S-REITs’ returns explained by the model. In the long run, the market factor has less explanatory power than the size and value factors; the positive long-term multiplier of the size factor indicates that small S-REIT companies have higher returns, along with higher risk, while the negative multiplier of the value indicator suggests that S-REITs portfolios prefer to allocate growth REITs with low book-to-market ratios. The empirical findings from a modified FF3 model, which additionally incorporates Spain’s gross domestic product (GDP) growth rate, two consumer price index (CPI) macro-factors and three dummy variables, indicates that GDP growth rate and CPI also affect S-REITs’ yields, while investment funds with capital calls have a small influence on S-REITs’ returns. Practical implications The regression results of the standard and extended FF3 model can help researchers understand S-REITs’ risk and return through a general stock pattern. Potential investors are given more information to consider the new Spanish investment vehicle before making a decision. Originality/value The paper uses standard techniques but applies them for the first time to the S-REIT market.

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 Taxation, government spending and economic growth: The case of Bulgaria

2021 ◽  
Vol 7 (3) ◽  
pp. 255-266
Author(s):  
G. Ganchev ◽  
◽  
I. Todorov ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Real Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run ◽  
The Impact

The objective of this article is to estimate the impact of three fiscal instruments (direct taxes, indirect taxes, and government expenditure) on Bulgaria’s economic growth. The study employs an autoregressive distributed lag model (ARDL) and Eurostat quarterly seasonally adjusted data for the period 1999–2020. Four control variables (the shares of gross capital formation, household consumption, and exports in GDP as well as the economic growth in the euro area) are included in the model to account for the influence of non-fiscal factors on Bulgaria’s real GDP growth rate. The empirical results indicate a long-run equilibrium relationship between Bulgaria’s economic growth and the independent variables in the ARDL. In the short term, Bulgaria’s real GDP growth rate is affected by its own past values and the previous values of the shares of direct tax revenue, exports, government consumption, and indirect tax revenue in GDP. In the long term, Bulgaria’s economic growth is influenced by its own previous values and the past values of the share of household consumption in GDP and the euro area’s real GDP growth rate. Fiscal instruments can be used to stabilize Bulgaria’s growth in the short run but they are neutral in the long run. The direct tax revenue, government consumption, and indirect tax revenue are highly effective and can be used as tools for invigorating and stabilizing Bulgaria’s economic growth in the short run. However, in the long term, the real GDP growth rate can be hastened only by encouraging domestic demand (final consumption expenditure of households) and promoting exports. This research cannot answer the question of whether flat income taxation stabilizes the economy or not, since it does not separate the impact of tax rate changes from the influence of tax base modifications.

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).

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.

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