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IJSTR >> Volume 6 - Issue 5, May 2017 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Revealed Comparative Advantage And Trade Competitiveness In Global Vegetable Products

[Full Text]



Alieu Gibba



export, mobility, revealed comparative advantage, stability, trade, vegetable



The role of comparative advantage has great significance in guiding international trade and business. The closed economies which create artificial barriers to trade and commerce hardly benefit by pursuing such restrictive policies. The objective of the article was to evaluate the revealed comparative advantages (RCA) of global vegetable trade as well as the stability and duration of Balassa indices by employing Kaplan-Meier survival function and Markov transition probability matrices. Findings reveal that Netherlands, Spain, and Mexico were the major exporters of the selected vegetables in the period evaluated, together giving 54% of all products exported – the top10 countries, therefore, consisted 74% of concentration, dominated by the fresh or chilled tomatoes which accounts for more than 40% of trade among the [examined] products for all the periods analysed. The Balassa indices, nonetheless, were the highest for Spain and Thailand. Generally, comparative advantages seem to have weakened for most of the countries as demonstrated by the stability tests and mobility indices.



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