Who is Trading Well with China? A Gravity and Constant Market Share Analysis of Exports of Pakistan and ASEAN in the Chinese Market

2021 ◽  
pp. 002190962110450
Author(s):  
Muhammad Abdul Kamal ◽  
Unbreen Qayyum ◽  
Saleem Khan ◽  
Bosede Ngozi Adeleye

This paper empirically investigated the trade competitiveness and trade potential of Pakistan and ASEAN countries in the Chinese market. The study utilizes trade data for the period of 2003–2019 to assess the bilateral trade aspects by using an extended gravity equation. In addition, the PPML model and constant market share analysis are applied to examine trade potential and competitiveness, respectively. Market size, distance, trade openness, revealed comparative advantage position and common border play an important role in bilateral trade of Pakistan and ASEAN with China, and coefficients of all these variables comply with the economic theory and are statistically significant. Pakistan along with Brunei, Cambodia, Laos, Myanmar, Philippines, and Thailand has great trade potential in the Chinese market. Particularly Cambodia and Vietnam are enjoying the highest competitive advantage as compared to other ASEAN countries. Pakistan’s export performance in China’s market relies on the market distribution effect. Based on this study, we have discussed country-specific future policy discourse for Pakistan and ASEAN countries in detail.

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261270
Author(s):  
Roni Bhowmik ◽  
Yuhua Zhu ◽  
Kuo Gao

China-ASEAN are the two huge markets in trade world, they can bring out greater dynamism from within their economies and contribute to regional economic development. This study explores the present situation on the trade between the Central region of China and ASEAN through empirical assessment and try to find the potential effects and trade flows between them. Firstly, we analysis the trade integration index, HM index, explicit comparative advantage index, and trade complementarity index. Finally, we use the gravity model of international trade and data on 2006–2018. The bilateral trade relations between the central region and ASEAN are getting closer, but the central region has not yet become the major trade area of ASEAN countries in the Chinese market. The bilateral economic development level plays a positive role in promoting the export trade between the Central region and ASEAN, while the bilateral distance plays a negative role in difficulty. The empirical results show that trade potential between the Central region and Indonesia and the Philippines is huge, and there is still opportunity for the development of the trade potential with Thailand. The trade prospective with Malaysia, Singapore and Vietnam is limited, and new approaches need to be developed to achieve further trade cooperation.


2021 ◽  
Vol 58 (2) ◽  
pp. 175-198
Author(s):  
Bee Hui Soh ◽  
Ghee-Thean Lim ◽  
Soo Y Chua

Malaysia, one of the global major fish producers, has highly traded fisheries products given its many water bodies. Nonetheless, it faces a serious fish trade deficit, implying that the Malaysian fisheries sector might lose its competitiveness in the global market. This paper adopts a modified constant market share (CMS) analysis, which incorporates a net-share approach index and geometric framework, to measure the export competitiveness of the Malaysian fisheries sector. The findings reveal that half of the fisheries products exhibit optimistic export competitiveness. Malaysia reflects the strongest competitiveness in exporting frozen fish and the least competitiveness in the export of crustaceans. Additional effort and attention on those less competitive groups of aquatic invertebrates, live fish and crustaceans are required to improve the export performance. Application of the modified approach is highly proposed as it is not only a simple measurement that gives relatively more accurate results but also succeeds to overcome inconsistency in the traditional approach. The findings provide evidence of unrealised fish export potential regarding product categories, which helps policymakers, traders and marketers to develop their long-term strategic plans and enhance the export competitiveness of the fisheries sector in Malaysia.


2018 ◽  
Vol 7 (2) ◽  
pp. 25-32
Author(s):  
Sonu Madan ◽  
Rajni Sharma

The present study analyses trade competitiveness of wheat export of India for the time period 1991 to 2016 using Nominal Protection Coefficient (NPC), temporal behaviour of NPC and Constant Market Share Analysis. The results revealed that Indian wheat has not been competitive in a regular manner under both exportable and importable hypothesis. Indian wheat has been found to be competitive under importable and exportable hypothesis during the period 1991-92 to 2000-01 & during 2011-12 to 2015-2016, but not competitive during 2001-02 to 2010-11. Constant Market Share Analysis suggests that export growth of wheat is attributed only to world trade effect or growth in the size of world trade and market distribution effect or concentration of Indian wheat exports in the market, which are relatively growing. So far as, export competitiveness of Indian wheat is concerned, the analysis reveals that there is competitive disadvantage in the wheat exports as compared to rest of world.


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