1 Comparative Advantage and Comparative Advantage and Competitiveness Analysis Competitiveness Analysis for for Japan’s Synthetic Fibre Japan’s Synthetic Fibre Export Export K.F. AU K.F. AU and M.C. WONG and M.C. WONG Institute of Textiles and Clothing Institute of Textiles and Clothing The Hong Kong Polytechnic University The Hong Kong Polytechnic University
29
Embed
1 Comparative Advantage and Competitiveness Analysis for Japans Synthetic Fibre Export K.F. AU and M.C. WONG Institute of Textiles and Clothing The Hong.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Comparative Advantage and Comparative Advantage and Competitiveness Analysis for Competitiveness Analysis for Japan’s Synthetic Fibre ExportJapan’s Synthetic Fibre Export
K.F. AU K.F. AU and M.C. WONG and M.C. WONG Institute of Textiles and ClothingInstitute of Textiles and Clothing
The Hong Kong Polytechnic UniversityThe Hong Kong Polytechnic University
2
Presentation OutlinePresentation Outline
I. Introduction
II. Overview of Japan’s synthetic fibre industry
III. Revealed Comparative Advantage (RCA)
IV. Revealed Competitiveness (RC) concepts
V. Empirical Analysis of RCA in Japan’s synthetic fibres export
VI. Japan’s Comparative Advantage and Competitiveness of synthetic fibre exports
VII. Conclusion
3
1. Introduction 1. Introduction In 2004 :In 2004 :
An increase of 6.7 % in world textile fibre consumption
At 67.4 Mn tons
Per capita fibre consumption: 10.5 kg/capita
4
1. Introduction1. Introduction 2004: World synthetic fibres consumption: 38
Mn tons (56.3%)
Synthetic fibre consumption
38Mn tons
Natural fibre consumption
24 Mn tons
5
1. Introduction1. Introduction
Synthetic textile fibres
Artificial petrochemical products created by chemical synthesis process
6
1. Introduction1. IntroductionMost important and popularly-used synthetic fibres
Capital-intensive manufacturing activity Dominated by developed countries since
the early 1970s e.g. Germany, Italy, France, UK, US and Japan etc. losing shares to low-cost Asian regions From 1980 to 2003, world share dropped from 94% to 34%
10
1. Introduction1. Introduction
JAPAN : ExceptionJAPAN : Exception
No similar declining trend
As world’s top-3 exporter
World share of synthetic fibre exports maintained around 14 % from 1990 to 2004
11
2. Overview of Japan’s synthetic fibre 2. Overview of Japan’s synthetic fibre industryindustry
FIGURE 2: WORLD SHARE OF SYNTHETIC FIBRE EXPORTS OF SELECTED COUNTRIES, 1990-2004Source: Data complied from International Trade Statistics Yearbook, various issues.
Japan:
• world’s leading synthetic fibre exporter
• maintains a steady and significant share, with an annual growth 2.8%
12
2. Overview of Japan’s synthetic fibre 2. Overview of Japan’s synthetic fibre industryindustry
Shift from quantity to quality
Shift from commodity products to specialty and niche items
More appropriate measuring index as supply and demand balances are embodied
Show clear distinctions between specific commodity and all other commodities, as well as between specific country and rest of the world
16
4. Revealed Competitiveness (RC)4. Revealed Competitiveness (RC) In mathematical interpretation, RC can
be expressed as:
RCij = Ln(RXAij ) - Ln(RMAij) where, • RCij = Revealed competitiveness index of country
j in commodity i • RXAij = Relative export advantage of country j in
commodity i• RMAij =Relative import advantage of country j in
commodity i • Ln = Natural logarithm
17
5. Empirical analysis of RCA in Japan’s 5. Empirical analysis of RCA in Japan’s synthetic fibres export synthetic fibres export
Based on: (1) Balassa’s RCA index
(2) Vollrath’s RC index
Similar economic background comparators include: Belgium, France, Germany, Ireland, Italy, Spain, UK and US
18
5.1 RCA in synthetic fibre exports5.1 RCA in synthetic fibre exports
RCA > 1 have revealed comparative advantage
RCA < 1 having revealed comparative disadvantage
19
5.1 RCA in synthetic fibre exports5.1 RCA in synthetic fibre exports
20
5.1 RCA in synthetic fibre exports5.1 RCA in synthetic fibre exports Japan, Ireland and Spain:
Their RCA > 1Have revealed comparative advantage in synthetic fibre exports
Japan: only country shows “increasing” RCA RCA index increased significantly, from 1.35 in 1990 to 2.68 in 2004
Ireland and Spain:Their RCA indices demonstrated a downward trendLosing their revealed comparative advantage in synthetic fibre exports
21
5.1 RCA in synthetic fibre exports5.1 RCA in synthetic fibre exports
Germany and Italy:Their RCA indices dropped below 1 Losing their revealed comparative advantage and exhibiting comparative disadvantage since 1990s
Belgium, France, UK and US:Their RCA indices < 1Have revealed comparative disadvantage in synthetic fibre exports
22
5.2 RC in synthetic fibre exports5.2 RC in synthetic fibre exports
Positive RC country is competitive in commodity trade
Negative RC country is not competitive internationally in the specific trading commodity
23
5.2 RC in synthetic fibre exports5.2 RC in synthetic fibre exports
Japan:
Most competitive synthetic fibre exporter
24
6. Analysis of Japan’s Comparative Advantage and 6. Analysis of Japan’s Comparative Advantage and Competitiveness of synthetic fibre exportsCompetitiveness of synthetic fibre exports
Key factors for the success of Japan’s synthetic fibre industry: High technological level Innovative development Highly- educated scientists Abundant capital resources Large investment in R & D
25
6. Analysis of Japan’s comparative advantage and 6. Analysis of Japan’s comparative advantage and competitiveness of synthetic fibre exportscompetitiveness of synthetic fibre exports
Japan has a comparatively higher R&D/GDP ratio
Higher potential to innovate new products or technology
Enhanced the RCA in her synthetic fibres export
26
7. Conclusion7. Conclusion
(a) From Balassa’s RCA study: Increasing RCA trend in Japan synthetic
fibre exports Related with R&D/GDP ratio Able to produce hi-tech and niche
synthetic fibres
27
7. Conclusion7. Conclusion
(b) From Vollrath’s RC study: Japan has the highest RC index among
the other studied countries Demonstrated export competitiveness in
synthetic fibre sector
28
7. Conclusion7. ConclusionFuture Prospect of Japan Synthetic Fibre SectorFuture Prospect of Japan Synthetic Fibre Sector Face competitive challenges from other low cost
producing countries Continue her edge in synthetic fibre sector by
exerting more R&D efforts Focus on developing high-value added niche