Trade Mapping of India’s Cotton Export
Abstract
The present research empirically investigated the export comparative advantage of India’s cotton products and determined the potential target importing cotton markets using annual dated data sourced from FAO database, spanning from 2000 to 2013.The collected data were analyzed using the static revealed comparative indexes, neoclassical comparative index (Trade mapping analysis), market structure index (Herfindahl-Hirschman Index) and prioritization index models. The results of the findings showed that India has poor comparative advantages with the exception of cotton lint in the exportation of its cotton products due to specialization in the production of lint. However, from the sector point of view the country had revealed comparative advantage in the exportation of cotton. Furthermore, empirical evidence showed that the cotton lint been the major export earning India emerged in the export market over the study period despite commanding small share in the market, and is among the winner groups. Though, for the overall sector, the country is at a threshold in the export market and among the winner groups. Therefore, study recommends the need for increase productivity and production cut-costs in order to improve the position of its products export amongst the commercial competitors. In addition, the commercial production status and behavior of the major competing exporting countries (China and USA) need to be fully tracked or monitored by the major participants in the cotton value chain in other to deal with the effects of externalities. The research will help to breach the gap of India’s cotton share in the global market by exploring potential target markets for its product, thus enhancing its cotton foreign exchange earnings.References
Astaneh, H.K., Yaghoubi, M., and Kalateharabi, V. (2014). Determining revealed comparative advantage and target markets for Iran's stone fruits. Journal of Agricultural Science Technology. 16: 253-264
Baffes, J. (2005). The cotton problem. The World Bank Research Observer. 20(1): 109-144.
Balassa, B. (1965). Trade liberalization and “revealed†comparative advantage. The Manchester School of Economic and Social Studies. 33(2): 99-123.
Batra, A., and Khan, Z. (2009). Revealed comparative advantage: An analysis for India and China. Indian Council for Research on International Economic Relations (ICRIER), New Delhi, Working Paper No. 168.
Brewer, P. (2001). International market selection: Developing a model from Australian case studies. International Business Review, 10:155-174.
Dhiman, R., and Sharma, M. (2017). Export competitiveness of Indian textile industry: Revealed comparative advantage analysis. International Journal of Applied Business and Economic Research. 5(7): 295-305
Fertö, I., and Hubbard, L.J. (2002). Revealed comparative advantage and competitiveness in Hungarian Agri-food sectors. World Economy. 26(2): 247-259.
Gupta, G.K., and Khan, M.A. (2017). Exports competitiveness of the Indian textile Industry during and after ATC. Journal of Textile Science and Engineering. 7(5): 1-6
Hirschman, A.O. (1964). The paternity of an Index. The American Economic Review. 54(5): 761-762.
ITC (2013). Improving Africa’s cotton value chain for Asian markets. Technical Paper. Pp. 3
Kumar, D., and Singh, D. (2015). Export competitiveness of Indian textile industry. Abhinav National Monthly Refereed Journal of Research in Commerce and Management. 4(2):1-5
Laursen, K. (1998). Revealed comparative advantage and the alternatives as measures of international speculation. Danish Research Unit for Industrial Dynamic (DRUID), Working Paper, No. 98-30.
Navghan, M., Kumar, N.R., Prakash, S., and Sharma, R. (2017). An empirical assessment of seafood export performance and competitiveness in Gujarat, India. Asian Journal of Agricultural Extension, Economics and Sociology. 21(3): 1-11
Samuel, J., Basavaraja, H., Pushpanjali and Rejani, R. (2015). Production, growth and export competitiveness of raw cotton in India- An economic analysis. Agricultural Research Technology. 1(1): 1-5
Sharma, S.K., and Bugalya, K. (2014). Competitiveness of Indian agriculture sector: A case study of cotton crop. Procedia - Social and Behavioral Sciences. 133: 320-335
Williams, E. and Rosen, R.A. (1999). A better approach to market power analysis. Technical Report, Tellus Institute, USA.
Copyright (c) 2020 Journal of Agriculture and Environmental Sciences
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
