Comparative Advantage in International Trade: A Study Based on Meat Exports in Pakistan

Abstract

This study examines the export performance and competitiveness in the meat sector of Pakistan. This study employs different indices of revealed comparative advantage such as RCA, RSCA, LnRCA, RCA#, RTA, RMA, RC and TBI to analyze the competitiveness and comparative advantage. The data have been taken from the International Trade Center (ITC) UNCOMTRADE statistics on meat exports and imports of Pakistan during 2004-2020. The findings of RCA, LnRCA, RCA# and RSCA indicate that Pakistan faced a comparative disadvantage in the meat export sector during 2004-2010, while a comparative advantage was observed from 2011-2020. Further, the index of revealed import advantage (RMA) depicts that Pakistan faced a competitive advantage in the import of these products during 2004-2020. RTA index depicts that Pakistan had a net-competitive advantage in this sector from 2004-2020. The results of TBI describe that Pakistan had a net- exporter in the concerned sector during the analysis. The positive values of revealed competitiveness (RC) illustrates that Pakistan had a revealed competitiveness in the meat export during the selected time span. This study will be helpful for the government to formulate a policy in consultation with the meat exporting and processing companies to encourage vertical integration in the value chain.