Analysis of Pakistan’s comparative advantage in Sugar Industry Products
DOI:
https://doi.org/10.22555/pbr.v27i1.1359Keywords:
Sugar industry, NRCA, sugar export, competitivenessAbstract
This study evaluates Pakistan’s comparative advantage in sugar industry products by analyzing export data from 2013 to 2022. It examines trends and performance of Pakistan’s sugar industry products relative to global competitors using the normalized revealed comparative advantage (NRCA) index. The NRCA index is preferred as it addresses the conventional need to normalize comparative advantage measures across countries and products, thereby providing more accurate insights into the competitiveness and magnitude of various countries’ comparative advantages in particular product categories. The results indicate that Pakistan possesses a clear comparative advantage in four categories of sugar products, while it has an unstable and wavering comparative advantage in HS 1701 (table sugar). The magnitude of this advantage comparative advantage is better and consistent in three categories of sugar products and inconsistent in the remaining two categories. Despite these advantages, Pakistan’s export shares across all product categories are low, indicating that the country has not capitalized on export opportunities in the international market. The results highlight the need for Pakistan to enhance export promotion efforts, especially in processed and value-added sectors, and to undertake relevant policy reform.
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