A Comparative Analysis of the International Trade Competitiveness of Kenya and Korea
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This paper aims to measure the trends of international trade competitiveness of Kenya and Korea by applying the Revealed Comparative Advantage (RCA) Index, the Trade Complementarity Index (TCI), and Trade Intensity Index (TII). This study has applied five alternative RCA indices. RCA and TC indices have been calculated on sectoral level while TI index has been calculated based on total exports and imports. The empirical findings from the five RCAs show that 6 sectors of Kenya and 12 sectors of Korea have significant international trade competitiveness. Strikingly, Korea has revealed comparative disadvantage in sectors in which Kenya has revealed comparative advantage and vice versa. The empirical findings using the trade complementarity index identify7sectors in which Kenya has a strong complementarity, whereas Korea shows a strong complementarity in 11 sectors. The empirical results using the TI index illustrate that Korea’s imports from Kenya are below her world import potential. However, the actual exports to Kenya are more than her relative share in world exports. Moreover, the same empirical results using the TII show that Kenya’s actual exports to and imports from Korea are below Kenya’s export and import potentials relative to her world shares. Thus, there is a tangible potential for enhancing bilateral trade between them. The empirical results of this study have consistently shown that Kenya has an international trade competitiveness in labor-intensive and resource-intensive sectors, while Korea is more specialized in the manufacturing and capital-intensive sectors. In consideration of the study’s outcomes, pragmatic policy implications are drawn.
Abstract
This paper aims to measure the trends of international trade competitiveness of Kenya and Korea by applying the Revealed Comparative Advantage (RCA) Index, the Trade Complementarity Index (TCI), and Trade Intensity Index (TII). This study has applied five alternative RCA indices. RCA and TC indices have been calculated on sectoral level while TI index has been calculated based on total exports and imports. The empirical findings from the five RCAs show that 6 sectors of Kenya and 12 sectors of Korea have significant international trade competitiveness. Strikingly, Korea has revealed comparative disadvantage in sectors in which Kenya has revealed comparative advantage and vice versa. The empirical findings using the trade complementarity index identify7sectors in which Kenya has a strong complementarity, whereas Korea shows a strong complementarity in 11 sectors. The empirical results using the TI index illustrate that Korea’s imports from Kenya are below her world import potential. However, the actual exports to Kenya are more than her relative share in world exports. Moreover, the same empirical results using the TII show that Kenya’s actual exports to and imports from Korea are below Kenya’s export and import potentials relative to her world shares. Thus, there is a tangible potential for enhancing bilateral trade between them. The empirical results of this study have consistently shown that Kenya has an international trade competitiveness in labor-intensive and resource-intensive sectors, while Korea is more specialized in the manufacturing and capital-intensive sectors. In consideration of the study’s outcomes, pragmatic policy implications are drawn.
참고문헌 (26)
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