Comparative analysis of the competitiveness of Beninese and Brazilian cotton exports in international trade from 2006 to 2018

Análise comparativa da competitividade das exportações beninenses e brasileiras do algodão no comércio internacional de 2006 a 2018

Abstract:

This study aims to analyze the competitiveness and orientation of Brazilian and Beninese cotton exports in international trade from 2006 to 2018. The cotton category in this article refers to “neither carded nor combed” (HS: 5201). To measure competitiveness, we chose to calculate the Revealed Comparative Advantage Index (RCAI) and Symmetric Revealed Comparative Advantage Index (SRCAI), proposed by Balassa (1965) and Laursen (1998) respectively. The Regional Orientation Index (ROI), proposed by Yeats (1997), of cotton for Asia and EU-28 is used. The data were collected from the International Trade Center (ITC) /Trade Map and the United States Department of Agriculture (USDA). The results found indicate that the Brazilian’s and Beninese’s cotton has been increasing values and above the unit showing its competitiveness in the international market. In addition, Benin was more competitive than Brazil because it has, on average, a higher SRCAI than Brazil (0.99 and 0.7 respectively). Concerning the ROI, it was found that Brazilian and Beninese cotton exports are strongly directed towards Asia, the main consumer market for Beninese and Brazilian cotton. As for the EU-28, both Benin and Brazil do not direct their cotton sales to this economic block.

Keywords:
cotton; revealed comparative advantages; regional orientation; Benin; Brazil