Trade competitiveness in the global market: An analysis of four palm oil products from Indonesia, Malaysia and Thailand
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Abstract
Indonesia, Malaysia, and Thailand’s competitiveness positions in the world market trade of four palm oil products, i.e., crude palm oil, refined palm oil, crude palm kernel oil, and refined palm kernel oil were investigated. The results indicated that Indonesia dominated the export of crude palm oil, refined palm oil, crude palm kernel oil, and refined palm kernel oil with the highest comparative advantage, and the country was a net-exporter during the period 2001–2017. Malaysia also had a comparative advantage and was a net- exporter of crude palm oil, refined palm oil, and refined palm kernel oil. Malaysia gained a comparative advantage in crude palm kernel oil export as a net-importer during 2001-2012 and became a net-exporter during 2013-2017. The findings confirmed that Indonesia and Malaysia are leaded the exporters of all four palm oil products that are highly competitive in the world market. Compared to Indonesia and Malaysia, Crude palm kernel oil was found the only product in which Thailand had a comparative advantage from 2001 - 2017. The results showed that Thailand was a net-exporter in all four products. This finding confirmed that Thailand could compete in the export of palm oil and palm kernel in the world market, although it had both comparative advantages and disadvantages. Based on the comparative advantage and trade balance framework, the results in this study suggested a positive relationship between comparative advantages and trade balances. Therefore, RSCA-TBI mapping is suitable for analyzing the export competitiveness at the international level of a country.
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