Agricultural Competitiveness of Vietnam by the RCA and the NRCA Indices, and Consistency of Competitiveness Indices
Viet Van Hoang, Khai Tien Tran, Binh Van Tu, Vinh Ngoc Nguyen, An Quynh Nguyen
Agris on-line Papers in Economics and Informatics, No 4 /2017, December
Hoang, V. V., Tran, K. T., Tu, B. V., Nguyen, V. N. and Nguyen, A. Q. (2017) “Agricultural Competitiveness of Vietnam by the RCA and the NRCA Indices, and Consistency of Competitiveness Indices", AGRIS on-line Papers in Economics and Informatics, Vol. 9, No. 4, pp. 53-67. ISSN 1804-1930.DOI 10.7160/aol.2017.090406.
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
Vietnam, Agriculture, Competitiveness, RCA, NRCA, Dynamics, Consistency.
- 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 10.1080/08853908.2016.1199982.
- Shorrocks, A. F. (1978) "The measurement of mobility", Econometrica: Journal of the EconometricSociety, pp. 1013-1024. ISSN 00129682. DOI 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 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 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 10.1007/s00168-008-0213-3.