Comparative Advantage and Competitiveness of World Soy Exporter in Respond to Us-China Trade Dispute

Aim/Purpose: This research identifies China’s agricultural commodities demand on soy and compares the comparative advantage, competitiveness of world soy exporters. Background: The world’s largest agricultural commodities importer-China had bought 10.7 % of world agricultural commodities (US$1,167.2 billion) during year 2017. Studying China’s demand in order to formulate export strategies is crucial especially for BRIC countries. Methodology: Reveal Comparative advantage (RCA), Comparative Advantage above Average (CAaA) and Export Competitive Advantage (XCA) were used in this study. Findings: Analysis shows that Brazil, USA, Argentina, Canada, Paraguay, Uruguay and Ukraine who supply more than 97% of world soy export have better comparative advantage and competitiveness over other soy exporters in the world. Russia and Netherlands are picking up with offering lower export price. Impact on Society: Due to US-China Trade dispute, China has switched soy import and purchase from the US to Brazil. That has caused US$3 billion wealth loss for both countries.

Footwear Export Competitiveness of Indonesia and Vietnam

This research investigates the primary constraint causing the low competitiveness of Indonesian footwear exports compared to Vietnam with new information from a number of the latest studies. This study uses Reveal Comparative Advantage (RCA) and the Trade Specialization Index (TSI). Differences in culture, economic structure, and firm rivalry all contribute to Indonesia's power competitiveness. This research adds a competitive advantage to study the factors that hamper the low competitiveness of Indonesian footwear against Vietnam. The results show that Indonesia's comparative advantage is more moderate than Vietnam, with an average RCA of 4, while Vietnam is 9. The average value of TSI is Indonesia close to 1 and Vietnam 1. The primary constraints are workers' wages higher than Vietnam, and business services such as R & D have not utilized. The development of the footwear industry policy must identify from upstream to downstream. The affirmative system made must be used to overcome short-medium term problems.JEL Classification: F13, F12, F17.How to Cite:Abdulkadir, A., Afriana, Wendra., & Azis, H. A. (2020). Footwear Export Competitiveness of Indonesia-Vietnam. Signifikan: Jurnal Ilmu Ekonomi, 9(2), 269-284. https://doi.org/10.15408/sjie.v9i2.15404.