IPMI has identified the most competitive types of fruit and vegetable products of Uzbekistan in foreign markets
24/05/2022 10:42
IPMI has identified the most competitive types of fruit and vegetable products of Uzbekistan in foreign markets
24/05/2022 10:42
Tashkent, Uzbekistan (UzDaily.com) -- Experts of Institute for Forecasting and Macroeconomic Research (IPMI) re-assessed the competitiveness of Uzbekistan’s fruit and vegetable products in foreign markets.
In June 2021, the Institute already published the results of an assessment of the competitiveness of fruit and vegetable products, but then the calculations were made on the basis of data on a 4-digit TNVED. This assessment differs in that the data on the 6-digit TNVED were taken as a basis, so instead of the 35 commodity groups considered earlier, this time we evaluated 127 commodity groups of fruits and vegetables.
To calculate the RCA (Revealed comparative advantage) and Laufey (LFI) indices, statistical data from the UN Comtrade database for TNVED groups 07, 08 20 for the period 2017-2021 were used. at current prices in US dollars
One of the most common indicators for assessing international competitiveness in practice is the RCA (Revealed comparative advantage) index or the Revealed Comparative Advantage Index.
But given that RCA deals only with exports, not taking into account imports, which can lead to incorrect results, IPMI experts also carried out alternative competitiveness calculations based on the Laufey Index (LFI). The peculiarity of the Laufey index (LFI) is that it allows you to determine the contribution of individual commodity groups to the normalized trade balance of the country.
Based on a comparison of the average values of the RCA and LFI indices obtained from the calculations, the IPMI experts grouped fruit and vegetable products into 3 groups: 1) goods with significant comparative advantages in foreign markets; 2) goods that are in a “marginal” state, i.e. in some years they are competitive on the world market, in others they are not competitive, and are highly dependent on the external market conditions, 3) goods that do not have comparative advantages in foreign markets.
Thus, it was possible to identify 36 groups of goods for which Uzbekistan has a clear comparative advantage in foreign markets and 58 groups of goods for which there are no comparative advantages. Comparative advantages or their absence for the remaining 33 product groups are ambiguous and depend on market conditions.
To the TOP 10 products with the greatest comparative advantages in world markets in the period 2017-2021 include: other beans (vinga spp., phaseolus spp.) dried, shelled, seeded or unpeeled, split or not split (TNVED code 071339); Fresh apricots (HS code 080910); Beans of the species vinga mungo (l.) hepper or vinga radiata (l.) Wilczek, dried, shelled, seeded or unpeeled, split or not split (TNVED code 071331); Persimmon (HS code 081070); Dried grapes (TNVED code 080620); Dried prunes (HS code 081320); Sweet cherry (HS code 080929); Dried apricots (HS code 081310); Dried apples (TNVED code 081330); Other vegetables and vegetable mixtures preserved for short-term storage, but not suitable for human consumption in this form (TNVED code 071190).
RCA is an index of revealed comparative advantage. If the RCA index is greater than 1, then the country is considered to have a competitive advantage in the production of good X. The larger the index, the greater the competitive advantage. The lower the RCA index, the less competitive the product is. For example, from the above table it can be seen that the product - Other beans (168.9) has the greatest competitive advantage.
LFI are trade indices for calculating comparative advantages based on data on net trade flows, if the LFI index for product X takes values greater than 0, the product is considered competitive in the world market, respectively, a negative value indicates its non-competitiveness. For example, the commodity Persimmon has an LFI value of 0.15, while the commodity Cherry has an LFI value of 0.32. So Cherry has a higher competitiveness than Persimmon.
The study showed that fresh fruit and vegetable products or products with a shallow level of processing are mainly competitive in the world market. The next step is to develop a Program to increase the competitiveness of fruit and vegetable products and products of their processing. Within its framework, attention should be focused on certain types of fruit and vegetable products, taking into account preferences in the world market (in terms of varieties and quality) and the existing potential of the industry in Uzbekistan.
25/04/2024Read more
25/04/2024Read more
$ 1 | 12697.00 | 0.000% |
1 | 13547.70 | 0.000% |
₽ 1 | 135.05 | 0.000% |