international trade
Analyze and comment about RCA of Vietnam based on data from Trade Map in 2012.
Contents
Introduce about RCA
Analyse of some VN’s industries
Evaluation of statistics
Case study of Rice: RCA of Vietnam Rice in comparision with Thailand
Introduction
Coefficient of Revealed Comparative Advantage (RCA).
• Represent comparative advantage or disadvantage of a certain country in a certain goods or services.
• It is based on the Ricardian comparative advantage concept.
EX1 : Export value of commodity X of a nation (in a year)
EC: Total export value of a nation (in a year)
EX2: Export value of commodity X of the world (in a year)
EW: Total export value of the world (in a year)
To evaluate comparative advantage of 1 commodity of a nation:
RCA ≤ 1: the nation does not have comparative advantage in commodity X.
1< RCA < 2.5: the nation has comparative advantage in commodity X.
RCA ≥ 2.5: the nation has vey high comparative advantage in commodity X.
Analysis of some VN’ industries
HS code Description Ex1 (thousand $) Ec Ex2 Ew Ex1/Ec Ex2/Ew RCA
1006 Rice 2635382.0 124,155,913 22,593,429 18,058,027,326 0.0212 0.0013 16.9654
901 Coffee 3475120.0 124,155,913 33419787 18058027326 0.0280 0.0019 15.1241
2709 Petroleum oils and oils obtained from bituminous minerals, crude 8603379.0 124,155,913 1,670,528,603 18,058,027,326 0.0693 0.0925 0.7491
6204 Women's suits, jackets,dresses skirts etc&shorts 2,028,166 124,155,913 53,226,046 18,058,027,326 0.0163 0.0029 5.5422
2710 Petroleum oils, other than crude 518,480 124,155,913 1,000,009,760 18,058,027,326 0.0042 0.0554 0.0754
3004 Medicaments 66959.8 124,155,913 298,176,187.75 18,058,027,326 0.0005 0.0165 0.0327
7208 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated. 24900.9 124,155,913 46,497,700.27 18,058,027,326 0.0002 0.0026 0.0779
8517 Telephone sets, including telephones for cellular networks 13156951.9 124,155,913
Contents
Introduce about RCA
Analyse of some VN’s industries
Evaluation of statistics
Case study of Rice: RCA of Vietnam Rice in comparision with Thailand
Introduction
Coefficient of Revealed Comparative Advantage (RCA).
• Represent comparative advantage or disadvantage of a certain country in a certain goods or services.
• It is based on the Ricardian comparative advantage concept.
EX1 : Export value of commodity X of a nation (in a year)
EC: Total export value of a nation (in a year)
EX2: Export value of commodity X of the world (in a year)
EW: Total export value of the world (in a year)
To evaluate comparative advantage of 1 commodity of a nation:
RCA ≤ 1: the nation does not have comparative advantage in commodity X.
1< RCA < 2.5: the nation has comparative advantage in commodity X.
RCA ≥ 2.5: the nation has vey high comparative advantage in commodity X.
Analysis of some VN’ industries
HS code Description Ex1 (thousand $) Ec Ex2 Ew Ex1/Ec Ex2/Ew RCA
1006 Rice 2635382.0 124,155,913 22,593,429 18,058,027,326 0.0212 0.0013 16.9654
901 Coffee 3475120.0 124,155,913 33419787 18058027326 0.0280 0.0019 15.1241
2709 Petroleum oils and oils obtained from bituminous minerals, crude 8603379.0 124,155,913 1,670,528,603 18,058,027,326 0.0693 0.0925 0.7491
6204 Women's suits, jackets,dresses skirts etc&shorts 2,028,166 124,155,913 53,226,046 18,058,027,326 0.0163 0.0029 5.5422
2710 Petroleum oils, other than crude 518,480 124,155,913 1,000,009,760 18,058,027,326 0.0042 0.0554 0.0754
3004 Medicaments 66959.8 124,155,913 298,176,187.75 18,058,027,326 0.0005 0.0165 0.0327
7208 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated. 24900.9 124,155,913 46,497,700.27 18,058,027,326 0.0002 0.0026 0.0779
8517 Telephone sets, including telephones for cellular networks 13156951.9 124,155,913