MARKET ORIENTED APPROACH OF REVEALED COMPARATIVE ADVANTAGE IN INTERNATIONAL TRADE
DOI:
https://doi.org/10.5937/ekoPolj1601247KKeywords:
market oriented revealed comparative advantage, agro-food trade, EU, SerbiaAbstract
Market oriented relative comparative trade advantage (MORTA) represents new approach to a widely accepted model of revealed comparative advantage (RCA) presented for the frst time in this paper. The applied model was used in the analysis of agro-food trade in order to identify changes in the level of relative comparative trade advantage between the EU and Serbia before and during the implementation of the Stabilization and Association Agreement with the EU (2004-2013) on the basis of Eurostat data and data of the Statistical Offce of the Republic of Serbia. The analysis aims to show whether Serbia and the EU, each on their side, were able to take advantage of the trade liberalization, especially in relative terms. The research results show that Serbia in terms of trade liberalization with the EU manages to secure the growth of the product with relative comparative trade advantage, but on the other side EU fails to largely use preferential status in trade with Serbia.
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References
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28. Vollrath, T.L. (1989): Competitiveness and Protection in World Agriculture, Agricultural Information Bulletin No. 567. U.S. Dept. of Agriculture, Economic Research Service. Washington, D.C., USA (available at: http://naldc.nal.usda.gov/).
29. Yeats, A.J. (1985): On the appropriate interpretation of the revealed comparative advantage index: implications of a methodology based on industry sector analysis, Weltwirtschaftliches Archiv, Vol. 121, No. 1, pp. 61-73 (available at: http://www.jstor.org/stable/40439288).
30. Qineti, A., Rajcaniova, M., Matejkova, E. (2009): The competitiveness and comparative advantage of the Slovak and the EU agri-food trade with Russia and Ukraine, Agric. Econ.–Czech, Vol. 55, No. 8, pp. 375-383, Czech Academy of Agricultural Sciences, Prague, Czech Republic (available at: http://www.agriculturejournals.cz/).
31. Zakon o potvrđivanju Sporazuma o stabilizaciji i pridruživanju između evropskih zajednica i njihovih članica, sa jedne strane i Republike Srbije, sa druge strane, Službeni glasnik RS-Međunarodni ugovori, br. 83/2008, Beograd, Srbija
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2. Balassa, B. (1965): Trade Liberalization and "Revealed" Comparative Advantage, The Manchester School, Vol.3, issue 2, pp.99–123, John Wiley & Sons Ltd, PO22 9NQ UK (available at: http://onlinelibrary.wiley.com).
3. Benedictis L.D., Tamberi M. (2001): A note on the Balassa Index of Revealed Comparative Advantage, Social Science Electronic Publishing Inc., NY, USA (available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=289602).
4. Bojnec, Š., Fertő, I. (2012): Complementarities of trade advantage and trade competitiveness measures, Applied economics Vol. 2, No. 4, pp. 399-408., Routledge Taylor & Francis Group Ltd, Oxford, UK (available at: http://onesearch.lancs.ac.uk).
5. Bowen, Harry P.(1983): On the Theoretical Interpretation of Indices of Trade Intensity and Revealed Comparative Advantage, Weltwirtschaftliches Archiv, Vol. 119, No. 3, pp. 464-472, Springer, NY, USA (available at: http://www.jstor.org/stable/40439150).
6. Dalum, B., Laursen, K., Villumsen, G. (1998): Structural change in OECD export specialisation patterns: de-specialisation and stickiness, International Review of Applied Economics, Vol. 12, No. 3, pp. 423-443, Routledge Taylor & Francis Group Ltd, Oxford, UK (available at: http://www.tandfonline.com/).
7. Eurostat Databease on International Trade, European Commission (available at: http://ec.europa.eu/eurostat/web/international-trade/data/database), database accessed during March-July 2015
8. Export and Import Price Index Manual – Theory and practice, International Monetary fund, 2009 Washington D.C.
9. Fertő, I., Bojnec Š. (2009): Comparative advantages in agro-food trade of Central European and Balkans countries with the European Union, Food policy, Vol. 34, No. 5, pp. 417-425, Elsevier B.V., Philadelphia, USA (available at: https://www.researchgate.net).
10. Grubel, H.G., Lloyd, P.J. (1971): The Empirical Measurement of Intraindustry Trade, The Economic Record, Vol. 47, pp. 494-517, The Economic Society of Australia, Willoughby, Australia (available at: http://onlinelibrary.wiley.com).
11. Ignjatijević, S., Čavlin, M., Đorđević, D. (2014): Measurement of comparative advantages of processed food sector of Serbia in the increasing the export, Economics of Agriculture, Vol. 3, pp. 677-694, Institute of Agricultural Economics, Belgrade, Serbia (available at: http://www.iep.bg.ac.rs/).
12. Jambor A. (2013): Comparative advantages and specialization of the Visegrad countries agri-food trade, Acta Oeconomica et Informatica, Vol. 16, No. 1, pp. 22–34, Nitra, Slovakia (available at: http://ageconsearch.umn.edu).
13. Katić, B., Popović, V., Milanović, R.M. (2008): Influence of stabilization and association agreement to the agriculture of the Republic of Serbia, Economics of Agriculture, Vol. 4, pp. 339-354, Institute of Agricultural Economics, Belgrade, Serbia (available at: http://www.iep.bg.ac.rs/).
14. Leromain, E., Orefce, G. (2013): New Revealed Comparative Advantage Index: dataset and empirical distribution, CEPII, No. 20, Paris, France (available at: http://www.cepii.fr).
15. Laursen, K (2015): Revealed comparative advantage and the alternatives as measures of international specialization, Eurasian Business Review, No. 5, pp. 99-115, Springer, NY, USA (available at: http://www.druid.dk).
16. Liesner, H.H. (1958):The European Common Market and British industry, The Economic Journal, Vol. 68, pp. 302-316, Royal Economic Society, London, UK (available at: https://www.researchgate.net/).
17. Michaely, M. (1962): Concentration in international trade, North-Holland Publishing Company, Amsterdam, Netherland (available at: http://www.abebooks.com/).
18. Raičević V., Ignjatijević S., Matijašević J.(2012): Economic and legal determinants of export competitiveness of the food industry of Serbia, Industrija Vol.40, No.1, pp.201-226, Economic Institute, Belgrade, Serbia (available at: http://www.ecinst.org.rs/industrija).
19. Database of international trade, Serbian Statistical Offce, (available at: http://webrzs.stat.gov.rs/WebSite/public/ReportView.aspx), database accessed during May-September 2015.
20. Sanidas E., Shih Y. (2010): Comparison of Revealed Comparative Advantage Indices with Application to Trade Tendencies of East Asian Countries, 9th Korea and the World Economy Conference, New Economic Order after the Global Financial Crisis, Incheon, Korea, (available at: http://www.akes.or.kr/).
21. Torok, A., Jambor, A. (2012): Changes in Agri-Food Trade of the New Member States since EU Accession–A Quantitative Approach, IAAE of Agricultural Economists, Triennial Conference, Foz do Iguaçu, Brazil, 2012, pp. 1-19. (available at: https://www.researchgate.net/).
22. Methodology of statistics in international trade, Serbian Statistical Offce, Belgrade, Serbia (available at: http://webrzs.stat.gov.rs/).
23. Statistical Paper - Standard International Trade Classifcation (SITC), Rev. 4, Series M No.34/Rev.4, United Nations Statistic Division (UNSTAT), 2006, NY, USA (available at: http://unstats.un.org/).
24. Strategy of Agriculture and Rural Development of Republic of Serbia 2014-2020, Ministry of Agriculture and Environmental Protection of Republic of Serbia, 2014, Belgrade, Serbia (available at: http://uap.gov.rs/).
25. User guide on European statistics on international trade in goods, Eurostat, 2014 edition, Luxembourg (available at: http://ec.europa.eu/).
26. Utkulu, U., Seymen, D. (2004): Revealed Comparative Advantage and Competitiveness: Evidence for Turkey vis-à-vis the EU/15, European Trade Study Group 6th Annual Conference ETSG, Nottingham, UK (available at: http://www.etsg.org/).
27. Vollrath, T.L. (1991): A Theoretical Evaluation of Alternative Trade Intensity Measures of Revealed Comparative Advantage, Weltwirtschaftliches Archiv, Vol.127, No.2, 265– 280, Springer, NY, USA (available at: http://www.jstor.org/stable/40439943).
28. Vollrath, T.L. (1989): Competitiveness and Protection in World Agriculture, Agricultural Information Bulletin No. 567. U.S. Dept. of Agriculture, Economic Research Service. Washington, D.C., USA (available at: http://naldc.nal.usda.gov/).
29. Yeats, A.J. (1985): On the appropriate interpretation of the revealed comparative advantage index: implications of a methodology based on industry sector analysis, Weltwirtschaftliches Archiv, Vol. 121, No. 1, pp. 61-73 (available at: http://www.jstor.org/stable/40439288).
30. Qineti, A., Rajcaniova, M., Matejkova, E. (2009): The competitiveness and comparative advantage of the Slovak and the EU agri-food trade with Russia and Ukraine, Agric. Econ.–Czech, Vol. 55, No. 8, pp. 375-383, Czech Academy of Agricultural Sciences, Prague, Czech Republic (available at: http://www.agriculturejournals.cz/).
31. Zakon o potvrđivanju Sporazuma o stabilizaciji i pridruživanju između evropskih zajednica i njihovih članica, sa jedne strane i Republike Srbije, sa druge strane, Službeni glasnik RS-Međunarodni ugovori, br. 83/2008, Beograd, Srbija
32. Zakon o potvrđivanju Prelaznog sporazuma o trgovini i trgovinskim pitanjima između Evropske zajednice, sa jedne strane, i Republike Srbije sa druge strane, Službeni glasnik RS-Međunarodni ugovori, br. 83/2008, Beograd Srbija
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Published
2016-01-31
How to Cite
Kuzman, B., Stegić, M., & Subić, J. (2016). MARKET ORIENTED APPROACH OF REVEALED COMPARATIVE ADVANTAGE IN INTERNATIONAL TRADE. Economics of Agriculture, 63(1), 247–260. https://doi.org/10.5937/ekoPolj1601247K
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Review articles
