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Research on the Comparative Advantage and Complementarity of China–Ghana Agricultural Product Trade

Author

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  • Benjamin Kofi Tawiah Edjah

    (International College, Central South University of Forestry and Technology, Changsha 410004, China
    School of Economics and Management, Wuhan University, Wuhan 430072, China)

  • Jianping Wu

    (College of Science, Hunan University of Science and Engineering, Yongzhou 425199, China)

  • Jinjin Tian

    (International College, Central South University of Forestry and Technology, Changsha 410004, China)

Abstract

As trade partners, China in East Asia and Ghana in Africa both play a major role in the China–Africa economic and trade cooperation and have strengthened their bilateral trade. The trade cooperation between China and Ghana has progressed, and there currently exists a large agricultural product trade between the two countries. China has become one of Ghana’s largest trading partners in recent decades, and bilateral cooperation has become stronger. This paper analyses the comparative advantage and complementarity of trade in agricultural products between China and Ghana in terms of twenty major agricultural products from 2016 to 2020, based on the revealed comparative advantage index, trade complementarity index, and their status quo. The results showed that the trade volume of China–Ghana agricultural products has continuously increased, and China is currently in a surplus state, but their total agriculture trade volume proportions had been decreasing. From the perspective of comparative advantage and complementarity, the results showed that the comparative advantage and complementarity coexist, but their comparative advantage is more obvious showing strong competitiveness. The result further shows that the comparative advantage of Ghana was stronger than that of China and the complementarity of China’s exports and Ghana’s imports of agricultural products has not been fully exploited; likewise, the complementarity of China’s imports and Ghana’s exports of agricultural products has not been fully exploited since 2018, and there is a large potential for further cooperation and development. Finally, based on the current situation and our analysis of agricultural trade between China and Ghana, suggestions were put forward to seek new and continuous development opportunities for agricultural trade cooperation between the two countries.

Suggested Citation

  • Benjamin Kofi Tawiah Edjah & Jianping Wu & Jinjin Tian, 2022. "Research on the Comparative Advantage and Complementarity of China–Ghana Agricultural Product Trade," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13136-:d:941175
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    References listed on IDEAS

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    1. Dave Donaldson, 2019. "Comparative advantage and agricultural trade," Agricultural Economics, International Association of Agricultural Economists, vol. 50(S1), pages 29-40, November.
    2. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    3. Feng, Lianyue & Xu, Helian & Wu, Gang & Zhao, Yuan & Xu, Jialin, 2020. "Exploring the structure and influence factors of trade competitive advantage network along the Belt and Road," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 559(C).
    4. Wani, Nassir Ul Haq, 2019. "Latency and Economic Concert of India’s Trade with Russia: An Empirical Investigation," MPRA Paper 104616, University Library of Munich, Germany, revised 19 Nov 2020.
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