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Comparison of revealed comparative advantage indexes with application to trade tendencies of cellulose production from planted forests in Brazil, Canada, China, Sweden, Finland and the United States

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  • Rossato, Fabrícia Gladys F.S.
  • Susaeta, Andres
  • Adams, Damian C.
  • Hidalgo, Ieda Geriberto
  • de Araujo, Thais Duekc
  • de Queiroz, Adriana

Abstract

The pulp industry is an important sector of the global economy and a positive contributor to the trade balance in pulp producing countries. The main objective of this study was to analyze the competitiveness in the production of wood pulp in the United States, Brazil, Canada, Sweden, Finland, and China. We employed two indexes – the revealed comparative advantage (RCA) index and the revealed symmetric comparative advantage (RSCA) index – to ascertain the underlying comparative advantages between countries. Further, we used the trade balance index (TBI) to assess wood pulp's impacts on trade balance. Results showed that under the RCA index, all countries but China have comparative advantages. The RSCA indicated that the highest comparative advantages belong to Finland, Canada, and Sweden. Trade balance, assessed via the TBI index, found positive trade balances for Brazil, Finland, Canada, Sweden, and the USA. China has the greatest comparative disadvantage. We concluded that the wood pulp industry has a strong positive influence on the export economies of Brazil, Finland, Canada and Sweden; and in the USA it has a moderate positive influence.

Suggested Citation

  • Rossato, Fabrícia Gladys F.S. & Susaeta, Andres & Adams, Damian C. & Hidalgo, Ieda Geriberto & de Araujo, Thais Duekc & de Queiroz, Adriana, 2018. "Comparison of revealed comparative advantage indexes with application to trade tendencies of cellulose production from planted forests in Brazil, Canada, China, Sweden, Finland and the United States," Forest Policy and Economics, Elsevier, vol. 97(C), pages 59-66.
    • Handle: RePEc:eee:forpol:v:97:y:2018:i:c:p:59-66
    DOI: 10.1016/j.forpol.2018.09.007
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    Cited by:

    1. Gordeev, Roman, 2020. "Comparative advantages of Russian forest products on the global market," Forest Policy and Economics, Elsevier, vol. 119(C).
    2. Su, Haiying & Hou, Fangmiao & Yang, Yixin & Han, Zheng & Liu, Can, 2020. "An assessment of the international competitiveness of China's forest products industry," Forest Policy and Economics, Elsevier, vol. 119(C).
    3. Sari, Dyah Wulan & Restikasari, Wenny & Ajija, Shochrul Rohmatul & Tarbiyah Islamia, Haura Azzara & Muchtar, Darmawati, 2021. "The Impacts of Foreign Direct Investment and Export Expansion on the Performance of the High-Tech Manufacturing Industry," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(2), pages 91-105.
    4. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Competitiveness and upgrading in global value chains: A multiple-country analysis of the wooden furniture industry," Forest Policy and Economics, Elsevier, vol. 140(C).
    5. Susaeta, Andres & Rossato, Fabricia Gladys, 2021. "Efficiency of pulp and paper industry in the production of pulp and bioelectricity in Brazil," Forest Policy and Economics, Elsevier, vol. 128(C).
    6. Adewuyi, Adeolu & Ogebe, Joseph O. & Oshota, Sebil, 2021. "The role of exchange rate and relative import price on sawnwood import demand in Africa: Evidence from modified heterogeneous panel data methods," The Journal of Economic Asymmetries, Elsevier, vol. 24(C).
    7. da Silva, João Carlos Garzel Leodoro & de Souza Maciel, Ademilson, 2022. "International trade standards and competitiveness of the chemical wood pulp and conifer sawn wood sectors do Brazil and Chile front of major world exporters," Forest Policy and Economics, Elsevier, vol. 137(C).
    8. Prasada, Imade Yoga & Nugroho, Agus Dwi & Lakner, Zoltan, 2022. "Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union," Forest Policy and Economics, Elsevier, vol. 144(C).

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