Comparative Advantage and Competitiveness of World Soy Exporter in Response to Us-China Trade Dispute
This research identifies China’s agricultural commodities demand on soy and compares the comparative advantage, competitiveness of world soy exporters.
The world’s largest agricultural commodities importer-China had bought 10.7 % of world agricultural commodities (US$1,167.2 billion) during year 2017. Studying China’s demand in order to formulate export strategies is crucial especially for BRIC countries.
Reveal Comparative advantage (RCA), Comparative Advantage above Average (CAaA) and Export Competitive Advantage (XCA) were used in this study.
Analysis shows that Brazil, USA, Argentina, Canada, Paraguay, Uruguay and Ukraine who supply more than 97% of world soy export have better comparative advantage and competitiveness over other soy exporters in the world. Russia and Netherlands are picking up with offering lower export price.
Due to US-China Trade dispute, China has switched soy import and purchase from the US to Brazil. That has caused US$3 billion wealth loss for both countries.