Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products
The aim of this study is to examine the consistency between the Balassa index and Vollrath indices in measuring comparative advantages of the Malaysian shrimp products with other major shrimp exporting nations as comparator. The study uses Balassa index and Vollrath indices to measure comparative ad...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Faculty of Food Science and Technology, Universiti Putra Malaysia
2016
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| Online Access: | http://psasir.upm.edu.my/id/eprint/50476/ http://psasir.upm.edu.my/id/eprint/50476/1/%2863%29.pdf |
| _version_ | 1848851566646263808 |
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| author | Ng, Xin Khai Ismail, Mohd Mansor Ahmad Sidique, Shaufique Fahmi |
| author_facet | Ng, Xin Khai Ismail, Mohd Mansor Ahmad Sidique, Shaufique Fahmi |
| author_sort | Ng, Xin Khai |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The aim of this study is to examine the consistency between the Balassa index and Vollrath indices in measuring comparative advantages of the Malaysian shrimp products with other major shrimp exporting nations as comparator. The study uses Balassa index and Vollrath indices to measure comparative advantages of the Malaysian shrimp products. The indices then are compared by consistency tests. Malaysia was generally not competitive in shrimp trade; however, revealed comparative advantage (RCA) and relative export advantage (RXA) indices show some extent of competitiveness on non-frozen shrimp product. Thailand had a remarkable competitiveness in shrimp trade as compared to other major exporting countries. Although we found that double-counting problem in the Balassa index is insignificant in measuring export performance of the Malaysian shrimp sector, import could be an important variable in accessing its trade competitiveness. Marginal import of a sector may lead to relative trade advantage (RTA) index consistent with RCA and RXA indices. Considering exports and imports of a particular commodity in measuring competitiveness is more consistent with the real world phenomenon of two-way trade. Selecting measurement of comparative advantage should rigorously base on trade behaviour of a sector as well as theoretical constructs. The competitiveness of the Malaysian shrimp products remains unclear due to the lack of contemporary analyses backed by formal testing procedures. The results and policy implications of this study provide stakeholders insights into comparative advantage as well as trade position of the products. Better measurement for revealed comparative advantage, particularly for shrimp products, is discussed in this paper. |
| first_indexed | 2025-11-15T10:24:13Z |
| format | Article |
| id | upm-50476 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:24:13Z |
| publishDate | 2016 |
| publisher | Faculty of Food Science and Technology, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-504762017-02-28T10:49:59Z http://psasir.upm.edu.my/id/eprint/50476/ Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products Ng, Xin Khai Ismail, Mohd Mansor Ahmad Sidique, Shaufique Fahmi The aim of this study is to examine the consistency between the Balassa index and Vollrath indices in measuring comparative advantages of the Malaysian shrimp products with other major shrimp exporting nations as comparator. The study uses Balassa index and Vollrath indices to measure comparative advantages of the Malaysian shrimp products. The indices then are compared by consistency tests. Malaysia was generally not competitive in shrimp trade; however, revealed comparative advantage (RCA) and relative export advantage (RXA) indices show some extent of competitiveness on non-frozen shrimp product. Thailand had a remarkable competitiveness in shrimp trade as compared to other major exporting countries. Although we found that double-counting problem in the Balassa index is insignificant in measuring export performance of the Malaysian shrimp sector, import could be an important variable in accessing its trade competitiveness. Marginal import of a sector may lead to relative trade advantage (RTA) index consistent with RCA and RXA indices. Considering exports and imports of a particular commodity in measuring competitiveness is more consistent with the real world phenomenon of two-way trade. Selecting measurement of comparative advantage should rigorously base on trade behaviour of a sector as well as theoretical constructs. The competitiveness of the Malaysian shrimp products remains unclear due to the lack of contemporary analyses backed by formal testing procedures. The results and policy implications of this study provide stakeholders insights into comparative advantage as well as trade position of the products. Better measurement for revealed comparative advantage, particularly for shrimp products, is discussed in this paper. Faculty of Food Science and Technology, Universiti Putra Malaysia 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/50476/1/%2863%29.pdf Ng, Xin Khai and Ismail, Mohd Mansor and Ahmad Sidique, Shaufique Fahmi (2016) Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products. International Food Research Journal, 23 (6). pp. 2752-2758. ISSN 1985-4668; ESSN: 2231-7546 http://www.ifrj.upm.edu.my/23%20(06)%202016/(63).pdf |
| spellingShingle | Ng, Xin Khai Ismail, Mohd Mansor Ahmad Sidique, Shaufique Fahmi Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products |
| title | Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products |
| title_full | Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products |
| title_fullStr | Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products |
| title_full_unstemmed | Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products |
| title_short | Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products |
| title_sort | consistency tests of comparative advantage measures: an empirical evidence from the malaysian and selected asian shrimp products |
| url | http://psasir.upm.edu.my/id/eprint/50476/ http://psasir.upm.edu.my/id/eprint/50476/ http://psasir.upm.edu.my/id/eprint/50476/1/%2863%29.pdf |