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.
This article deals with the topic of European imbalances. They are defined as large and persistent differences in the current account position of European countries, which are closely connected to the emergence of the financial crisis and the subsequent sovereign debt crisis in 2008. A build-up in current account deficits had been observed from the mid-1990s, namely in two peripheral regions of the EU. However, little attention was paid to the potential differences between the Southern and Central European peripheries of the EU. The emergence of large and persistent current account deficits in Southern Europe was accompanied by a significant shift in gains from global value chains. The aim of this paper is to evaluate the factors that co-determined the changes in the geographic structure of GVCs in Europe. These changes decreased GVC income in Southern Europe, increased it in Central Europe and contributed to the build-up of account imbalances in Southern Europe. Despite the fact that Central Europe was among the deficit regions in European imbalances, the four Central European countries substantially increased their gains from global value chains as well as GVC participation. The shift in GVC activity towards Central Europe between 1995 and 2011 was driven not only by total labour costs but also by better regulatory quality. At the same time, TNCs switching from Southern to Central Europe had to accept worse quality contract enforcement.
Czechia is one of the most export-oriented countries, reaching high levels of economic complexity. However, its innovative capabilities remain limited. Taking these factors into consideration, we determined the country's optimal diversification path by identifying prospective export sectors which would enhance the country's competitiveness. We combine the product space and proximity methodologies on predicted export data together with a company-level analysis. We identified machinery for specialized industries and parts thereof (SITC 7284), machine-tools for specialized industries parts or accessories (SITC 7281) and power hand tools, pneumatic or non-electric, and parts thereof (SITC 7541) as the most prospective categories in terms of high complexity, expected trade volume growth, proximity to Czechia's existing production capabilities and manufacturing base operated by large, highly innovative Czech-owned firms.
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