Revealed Comparative Advantage and Sustainable Export Competitiveness of Firms in the East African Community
Journal Title: Journal of Economics, Finance and Management Studies - Year 2025, Vol 8, Issue 03
Abstract
The purpose of this paper is to examine the influence of revealed comparative advantage as a determinant of the sustainability of export competitiveness of firms in the East African Community (EAC). The study adopted the Balassa’s measure of Revealed comparative advantage index model. The researcher computed the major trade outcome indicator of competitiveness on the data from 2003 to 2022. The study based on the top ten exports for each country to assess the competitiveness of a country`s overall basket of products as well as the specific sectors. Data was obtained from World Bank International Trade Centre (ITC) and World Bank development indicators. The results indicate that overall, the EAC countries have Revealed Comparative advantage in natural resource and primary products though the composition could be changing. The low RCA in other sectors reflect the lack of structural transformation which could explain a given considerable proportion of trade diversion and potential welfare losses in the EAC countries, reducing the sustainability of export competitiveness of firms in the foreign markets. Exporting countries need to take deeper reforms as regards structural transformation to enable firms to integrate into the Global Value Chains (GVCs) to enable them to increase their productivity by reviewing the existing policies to match the changes in the market. There is a need to examine the complicated nature of the EAC economy to further this study’s findings. This study explains the complex nature of the revealed comparative index as an indicator of sustainability of competitiveness in the EAC using quantitative data and that this complexity has an effect on the export competitiveness in import-oriented countries with less harmonization in their trade policies.
Authors and Affiliations
Dr. Olyanga Anthony Moni , Mukundane Proscovia , Muhire Francis,
Keywords
Related Articles
- EP ID EP760585
- DOI 10.47191/jefms/v8-i3-11
- Views 40
- Downloads 0
Analysis of Access to Electricity, Clean Water, and Sanitation on Malnutrition in Developing Countries
Social infrastructure, which includes access to electricity, clean water, and sanitation, plays a critical role in addressing child malnutrition in developing countries. This study aims to determine the improvement of so...
Can Global Trade Of Medical Supplies Solve The Covid-19 Puzzle?
The main aim of this study to determine the explanatory variables of the Chinese exports of COVID-19 medical supplies to its 89 major trading partners in the first half of the year 2020. In addition, it explores the puz...
Compensation and Work from Home (WFH) Effects on Employee Performance
Corona Virus Disease 2019, also known as COVID-19, is an infectious disease caused by SARS-CoV-2, a kind of corona virus. The Covid-19 pandemic is a worldwide issue as well as a national one. The epidemic has disturbed g...
Understanding of Tax Directorate General Employees on Taxpayer Compliance Behavior
Revenue from the taxation sector is the main pillar of state revenue in the State Budget (APBN). However, the Tax ratio, tax capacity, tax effort and tax bouyancy are still very low in Indonesia, indicating that taxpayer...
Management of Village Funds in Improving the Community's Economy in Ranjok Village, Gunungsari District
This study aims to determine how village funds are managed and how the Government's efforts are in improving the community's economy in Ranjok village, Gunung Sari sub-district, West Lombok district. This study used a qu...