Agricultural Competitiveness of Vietnam by the RCA and the NRCA Indices, and Consistency of Competitiveness Indices
DOI:
https://doi.org/10.7160/aol.2017.090406How to Cite
Abstract
This study measures the static and dynamic agricultural competitiveness of Vietnam by the RCA and the NRCA. The dynamics of the trade competitiveness indicators are assessed in three ways: OLS regression, Markov matrices, and trend analysis. The paper, moreover, tests the consistency between the RCA, NRCA, and RTA indices. The results show that (i) Vietnam, generally, achieves strong competitiveness in crop and fishery sectors whilst it has weak competitiveness in livestock and processed food sectors; (ii) the country has the convergent pattern of agricultural competitiveness with the high stability of strong competitive and uncompetitive sectors; (iii) the country’s agricultural export strategy and competitiveness pattern are based on the natural-resource-intensive and traditional agricultural products with a slight improvement over time; and (iv) the RCA, NRCA, and RTA indices are strongly consistent in identifying the degrees of competitiveness and determining whether a country obtains competitiveness while they are weakly consistent in ranking competitiveness.References
Abidin, M. Z. and Loke, W. H. (2008) "Revealed comparative advantage of Malaysian exports: The case for changing export composition", Asian Economic Papers, Vol. 7, No. 3, pp. 130-147. ISSN 1535-3516. DOI: https://doi.org/10.1162/asep.2008.7.3.130
Balassa, B. (1965) "Trade liberalisation and “revealed” comparative advantage", The ManchesterSchool, Vol. 33, No. 2, pp. 99-123. DOI: https://doi.org/10.1111/j.1467-9957.1965.tb00050.x
Brasili, A., Epifani, P. and Helg, R. (2000) “On the Dynamics of Trade Patterns”, De Economist,Vol. 148, No.2, pp. 233-257. ISSN 0013-063X. DOI: https://doi.org/10.1023/A:1004065229330
Cai, J. and Leung, P. S. (2008) "Towards a more general measure of revealed comparative advantagevariation", Applied Economics Letters, Vol. 15, No. 9, pp. 723-726. ISSN 1350-4851.
Cantwell, J. (1989) "Technological innovation and multinational corporations", Cambridge:B. Blackwell, 239 p. ISBN 0631138471.
Ceglowski, J. (2017) "Assessing Export Competitiveness through the Lens of Value Added",The World Economy, Vol. 40, No. 2, pp. 275-296. ISSN 1467-9701. DOI: https://doi.org/10.1111/twec.12362
Dalum, B., Laursen, K. and Villumsen, G. (1998) "Structural change in OECD export specialisationpatterns: de-specialisation and stickiness", International Review of Applied Economics, Vol. 12,No. 3, pp. 423-443. ISSN 0269-2171/1465-3486. DOI: https://doi.org/10.1080/02692179800000017
Deb, K. and Hauk, W. R. (2017) "RCA indices, multinational production and the Ricardian trademodel", International Economics and Economic Policy, Vol. 14, No.1, pp. 1-25. ISSN 1612-4804. DOI: https://doi.org/10.1007/s10368-015-0317-z
Esquivias, M. A. (2017) “The Change of Comparative Advantage of Agricultural Activities in EastJava within the Context of ASEAN Economic Integration", AGRIS on-line Papers in Economicsand Informatics, Vol. 9, No. 1, pp. 33 - 47. ISSN 1804-1930. DOI: https://doi.org/10.7160/aol.2017.090103
Ferto, I. and Hubbard, J. L. (2003) “Revealed comparative advantage and competitivenessin Hungarian agri-food sectors”, The World Economy, Vol. 26, pp. 247-259. ISSN 1467-9701. DOI: https://doi.org/10.1111/1467-9701.00520
Ferto, I. and Soos, K. A. (2008) "Trade specialization in the European Union and in post-communistEuropean countries", Eastern European Economics, Vol. 46, No. 3, pp. 5-28. ISSN 0012-8775.
Gorton, M., Davidova, S. and Ratinger, T. (2000) "The competitiveness of agriculture in Bulgariaand the Czech Republic vs the European Union", Comparative Economic Studies, Vol. 42, No. 1,pp. 59-86. ISSN 0888-7233. DOI: https://doi.org/10.1057/ces.2000.2
Hart, P. E. (1976) "The dynamics of earning, 1963-1973", Economics Journal, Vol. 86, No. 343,pp. 551-565. DOI: https://doi.org/10.2307/2230799
Hart, P. E. and Prais, S. J. (1956) "The analysis of business concentration: a statistical approach",Journal of the Royal Statistical Society. Series A (General), Vol. 119, No. 2, pp. 150-191. DOI: https://doi.org/10.2307/2342882
Hinloopen, J. and Marrewijk, C. V. (2001) "On the empirical distribution of the Balassa index",Weltwirtschaftliches Archiv, Vol. 137, No.1, pp. 1-35. ISSN 1610-2878/1610-2886. DOI: https://doi.org/10.1007/BF02707598
Hoang, V.V ., Tran, K. T. and Tu, B.V . (2017) “Assessing the Agricultural Competitive Advantageby the RTA index: A Case Study in Vietnam", AGRIS on-line Papers in Economics and Informatics,Vol. 9, No. 3, pp. 15 - 26. ISSN 1804-1930. DOI: https://doi.org/10.7160/aol.2017.090302
Hoen, A. R. and Oosterhaven, J. (2006) "On the measurement of comparative advantage",The Annals of Regional Science, Vol. 40, No. 3, pp. 677-691.
Kreinin, M. E. and Plummer, M. G. (1994) "Structural change and regional integration in East Asia",International Economic Journal, Vol. 8, No. 2, pp. 1-12.
Krugman, P. R. (1994) “Competitiveness-A dangerous obsession”, Foreign Affairs, Vol. 73, No. 2,pp. 28-44. ISSN 00157120. DOI: https://doi.org/10.2307/20045917
Kuldilok, K. S., Dawson, P. J. and Lingard, J. (2013) "The export competitiveness of the tunaindustry in Thailand", British Food Journal, Vol. 115, No. 3, pp. 328-341. ISSN 0007-070X. DOI: https://doi.org/10.1108/00070701311314174
Kunimoto, K. (1977) "Typology of trade intensity indices", Hitotsubashi Journal of Economics,Vol. 17, No. 2, pp. 15-32. ISSN 0007-070X. DOI: https://doi.org/10.15057/7981
Liesner, H. H. (1958) "The European common market and British industry", The Economic Journal,Vol. 68, No. 270, pp. 302-316. ISSN 1468-0297. DOI: https://doi.org/10.2307/2227597
Lucas, R. (1988) “On the Mechanics of Economic Development”, Journal of Monetary Economics,Vol. 22, No. 1, pp. 3-22. ISSN 0304-3932. DOI: https://doi.org/10.1016/0304-3932(88)90168-7
Martin, R. L. (2003) "A study on the factors of regional competitiveness", A draft final report for TheEuropean Commission Directorate-General Regional Policy, Cambridge: University of Cambridge.
Nath, H. K., Liu, L. and Tochkov, K. (2015) "Comparative advantages in US bilateral servicestrade with China and India", Journal of Asian Economics, Vol. 38, pp. 79-92. ISSN 1049-0078. DOI: https://doi.org/10.1016/j.asieco.2015.04.002
Proudman, J. and Redding, S. (2000) "Evolving patterns of international trade", Review of internationaleconomics, Vol. 8, No. 3, pp. 373-396. ISSN 1467-9396. DOI: https://doi.org/10.1111/1467-9396.00229
Sarker, R. and Ratnasena, S. (2014) "Revealed Comparative Advantage and Half-a-CenturyCompetitiveness of Canadian Agriculture: A Case Study of Wheat, Beef, and Pork Sectors",Canadian Journal of Agricultural Economics, Vol. 62, No. 4, pp. 519-544. ISSN 1744-7976. DOI: https://doi.org/10.1111/cjag.12057
Seleka, T. B. and Kebakile, P. G. (2017) "Export Competitiveness of Botswana’s BeefIndustry", The International Trade Journal, Vol. 31, No.1, pp. 76-101. ISSN 0885-3908. DOI: https://doi.org/10.1080/08853908.2016.1199982
Shorrocks, A. F. (1978) "The measurement of mobility", Econometrica: Journal of the EconometricSociety, pp. 1013-1024. ISSN 00129682. DOI: https://doi.org/10.2307/1911433
United Nations Comtrade (2017) [Online]. Available: http://comtrade.un.org/data/ [Accessed:10 May, 2017].
Vollrath, T. (1991) “A theoretical evaluation of alternative trade intensity measuresof revealed comparative advantage”, Review of World Economics, Vol. 127, No. 2, pp. 265-280.ISSN 1610-2878/1610-2886. DOI: https://doi.org/10.1007/BF02707986
Young, A. (1991) “Learning-by-Doing and Dynamic Effects of International Trade”, QuarterlyJournal of Economics, Vol. 106, No. 2, pp. 396–406. ISSN 0033-5533. DOI: https://doi.org/10.2307/2937942
Yu, R., Cai, J. and Leung, P. S. (2009) “The normalized revealed comparative advantageindex”, The Annals of Regional Science, Vol. 43, pp. 267–282. ISSN 0570-1864. DOI: https://doi.org/10.1007/s00168-008-0213-3
