Comparative advantage dynamism of Indonesian export products

Setyari, Ni Putu Wiwin; Widodo, Tri; Purnawan, Muhammad Edhie

doi:10.1353/jda.2016.0068

Cited by 3 publications

(1 citation statement)

References 11 publications

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“…Finally, we look at how comparative advantage changed through time by examining what product categories lost, retained, or gained comparative advantage between two subperiods. This follows other studies that have looked at the evolution of comparative advantage (see Bender and Li, 2002;Setyari et al, 2016;Stellian and Danna-Buitrago, 2019;Widodo, 2009).…”

Section: Analytical Approachsupporting

confidence: 70%

Examining the Patterns and Dynamics of Intra-Regional Trade and Revealed Comparative Advantage in the East African Community

Mkenda

2022

Afr. Rev.

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This paper investigates intra-regional trade changes in the East African Community since its revival, as well as their revealed comparative advantage and evolution between 2001 and 2020. While most studies have examined the comparative advantage of individual EAC countries, they have not addressed how the revival of the Community impacted comparative advantage and intra-regional trade over time. As its analytical approach, the study calculates trade intensity indicators, revealed comparative advantage indices, and evaluates product categories that have lost, retained, or gained comparative advantage. The following conclusions are drawn from the study’s findings: first, the revival of the Community increased intra-regional trade at first, but it soon dwindled due to non-tariff barriers. Second, product groups exported in raw form retained their comparative advantage, with Uganda having the most such product groups. Third, comparative advantage evolved, with Kenya having the greatest number of product groups gaining comparative advantage. Three policy implications emerge: first, restoring intra-regional trade to immediate post-Community levels requires significant reductions in trade barriers. Second, increasing export revenues necessitates the addition of value to agricultural products. Third, due to the dynamic nature of comparative advantage, countries must tailor policy support to product groups that lose comparative advantage.

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Section: Analytical Approachsupporting

confidence: 70%

Examining the Patterns and Dynamics of Intra-Regional Trade and Revealed Comparative Advantage in the East African Community

Mkenda

2022

Afr. Rev.

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Revealed Comparative Advantage Analysis Based on VEC models in Chinese Capital-technology-intensive Industry

Wang¹

2016

Proceedings of the 2016 6th International Conference on Advanced Design and Manufacturing Engineering (ICADME 2016)

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Abstract. We investigate the relationships among revealed comparative advantages of Capital-technology-intensive industry, GDP per capita and households deposits in China. With the non-stationary sequences of global Capital-technology-intensive products' exports, we constructed the vector error correction model with serial correlation, and found that revealed comparative advantage, GDP per capita and annual increase of RMB savings deposits of Chinese residents are not stable series, while after second difference to three series, they were stable series. The revealed comparative advantage index are from 0.37 to 0.78, and revealed comparative advantage index, GDP per capita and annual RMB increase are with cointegrated. The result has showed that it will make non-equilibrium state back to equilibrium by coefficient of 0.24 in long-term.

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The Fundamental Patterns of Comparative Advantage of Steel Industry in Indonesia

Sari¹,

Shrestha

Parsons

2020

BILP

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Abstrak Pengukuran produktivitas yang akurat dapat memberikan informasi yang berguna dalam meningkatkan daya saing. Oleh karena itu, penting untuk memahami perbedaan dalam produktivitas relatif antar-negara. Hal ini memungkinkan negara untuk fokus dan berspesialisasi dalam produk-produk mereka yang relatif lebih produktif. Penelitian ini bertujuan untuk menganalisis pola dasar keunggulan komparatif, dengan industri baja Indonesia sebagai fokus analisis. Penelitian ini menggunakan analisis RCA berbasis regresi dengan metode variabel instrumen (instrument variable/IV) yang menggunakan data ekspor dari 25 negara ke 35 negara tujuan dari tahun 2010-2017. Hasil penelitian menunjukkan bahwa Indonesia memiliki keunggulan komparatif terkuat di industri baja di antara negara-negara ASEAN. Meskipun industri baja adalah industri ke-27 dalam peringkat nilai keunggulan komparatif dalam negeri Indonesia, ada beberapa produk yang memiliki keunggulan komparatif yang kuat dan bahkan memiliki posisi yang kuat secara internasional. Selain itu, penting untuk mengikutsertakan beberapa negara ASEAN sebagai observasi dalam mengestimasi parameter kunci produktivitas karena menghasilkan estimasi baru θ, yang masih sejalan dengan literatur yang ada. Abstract Accurate productivity measurements can provide useful information in improving competitiveness. Therefore, it is important to understand the differences in relative productivity among countries, allowing countries to focus and specialize in their relatively more productive products. This study aims to analyze the fundamental patterns of comparative advantage, with the Indonesian steel industry as the focus of analysis. This research uses the regression-based method of revealed comparative advantage (RCA) analysis with an instrument variable (IV) method that employs export data from 25 exporting countries to 35 destination countries during 2010 - 2017. The result shows that Indonesia has the strongest comparative advantage in the steel industry among the ASEAN countries. Even though the steel industry is ranked 27th in Indonesia’s comparative advantage values, several products have a strong comparative advantage and even a strong position internationally. In addition, it is worth including some ASEAN countries in the observation of estimating the key parameter of productivity, while not the main focus of the paper, yields a new estimate of θ, which is still in line with the literature. JEL Classification: F11, F13, F14

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Comparative advantage dynamism of Indonesian export products

Cited by 3 publications

References 11 publications

Examining the Patterns and Dynamics of Intra-Regional Trade and Revealed Comparative Advantage in the East African Community

Examining the Patterns and Dynamics of Intra-Regional Trade and Revealed Comparative Advantage in the East African Community

Revealed Comparative Advantage Analysis Based on VEC models in Chinese Capital-technology-intensive Industry

The Fundamental Patterns of Comparative Advantage of Steel Industry in Indonesia

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