RCA Index Case Study

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The RCA index was used by many researchers around the world like Leu in 1998 presented that comparative advantage had shifted from Japan to East Asian Economies using RCA index. His analysis focused mainly on exports of these countries to US market from 1980 to 1994 and the results support his belief that comparative advantage had shifted from Japan to Taiwan, Korea and Singapore.
Balassa (1977) had undertaken an analysis of the pattern of comparative advantage of industrial countries for the period 1953 to 1971. Balassa’s results showed that while the extent of export diversification tends to increase with the degree of technological development a reversal takes place at higher levels.
Lim (1997), attempted to illuminate the characteristics …show more content…

Mahmood (2005), explored export specialization of Pakistan 's non-agriculture production sectors during 1990-2000 and that how the relative position of different non-agricultural production sectors in Pakistan revealed comparative advantage using RCA. His analysis also showed which of the Pakistan’s non-agricultural products are maintaining, trailing or gaining their base in the world market.
Suprihatini (2005), used CMS approach for Indonesian tea exports and the results showed that exports of Indonesian tea was lower than that of world tea growth due to production composition problem, distribution phase problem and low competitiveness of Indonesian …show more content…

Results showed that India had enjoyed a comparative advantage in tea exports but had depicted a declining trend over the years. An analogous pattern had been observed in coffee exports also, where India had been found trailing her comparative advantage to other world coffee exporters. Also an unstable pattern of comparative advantage had been observed in the case of rice exports with discontinuous ups and downs in the status. A gradual decline in India’s comparative advantage had been depicted for exports of sugar and cashew also. While in the same time India had strengthened her place in the global markets in exports of Ground nut. Bhtachariya (2011), analyzed the comparative advantage analyses for Indian agricultural market with respect to EU, USA, Canada and found India had comparative advantage in vegetables and fruits in EU market but is not so for the flower sector which shows prominently less comparative

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