IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i7p5821-d1108787.html
   My bibliography  Save this article

Competitiveness of Ecuador’s Flower Industry in the Global Market in the Period 2016–2020

Author

Listed:
  • Inmaculada Guaita-Pradas

    (Faculty of Business Administration and Management, Economics and Social Science Department, Universitat Politècnica de València, 46022 Valencia, Spain)

  • Luis Oswaldo Rodríguez-Mañay

    (Facultad de Ciencias Administrativas, Universidad Central del Ecuador, Quito 170129, Ecuador)

  • Inmaculada Marques-Perez

    (Faculty of Business Administration and Management, Economics and Social Science Department, Universitat Politècnica de València, 46022 Valencia, Spain)

Abstract

More intense floriculture activity in Ecuador could mean huge improvements for the country’s economic growth, while at the same time would be a sustainable exploitation of its natural resources. This study aims to help floriculture entrepreneurs in Ecuador with production planning, investment, and marketing strategies. With this in mind, two main objectives are addressed in the paper. The first one is to obtain an analytical overview of the world’s flower industry and the chief exporting and importing countries, as well as of the types of flowers that are offered and demanded. The second is to determine the competitive position of Ecuador’s flower industry and that of its direct competitors in the global cut flower marketplace. To accomplish the latter, we used Balassa’s and Hinloopen and Van Marrewijk’s measures and carried out statistical tests to validate the results. These indicated that both Ecuador and Colombia enjoy a strong comparative advantage among their direct competitors: the Netherlands, Kenya, and Ethiopia. Although the 2018 Logistics Performance Index and the 2017–2018 Global Competitiveness Index rankings put Ecuador in the 70th and 97th position worldwide, respectively, our findings show that Ecuador has the potential to achieve higher market shares in the flower trade globally. Consequently, strategic production policies should be implemented for Ecuadorian flower companies to adapt to the international flower trade requirements and for improving the production and supply chain technologies so that Ecuador can reach other foreign markets.

Suggested Citation

  • Inmaculada Guaita-Pradas & Luis Oswaldo Rodríguez-Mañay & Inmaculada Marques-Perez, 2023. "Competitiveness of Ecuador’s Flower Industry in the Global Market in the Period 2016–2020," Sustainability, MDPI, vol. 15(7), pages 1-12, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5821-:d:1108787
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/7/5821/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/7/5821/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liu, Bin & Gao, Jianbo, 2019. "Understanding the non-Gaussian distribution of revealed comparative advantage index and its alternatives," International Economics, Elsevier, vol. 158(C), pages 1-11.
    2. Sèna Kimm Gnangnon, 2020. "Comparative Advantage Following (CAF) development strategy, Aid for Trade flows and structural change in production," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-29, December.
    3. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 265-280, June.
    4. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 1-35, March.
    5. Liemt, Gijsbert van., 1999. "The world cut flower industry : trends and prospects," ILO Working Papers 993366463402676, International Labour Organization.
    6. Saleh Y. Alghamdi, 2023. "A Review of Blood Delivery for Sustainable Supply Chain Management (BSCM)," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    7. Bin Liu & Jianbo Gao, 2019. "Understanding the non-Gaussian distribution of revealed comparative advantage index and its alternatives," International Economics, CEPII research center, issue 158, pages 1-11.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iglesias, Matias Nehuen, 2021. "Measuring size distortions of location quotients," International Economics, Elsevier, vol. 167(C), pages 189-205.
    2. Andrey A. Gnidchenko & Vladimir A. Salnikov, 2021. "Trade Intensity, Net Trade, and Revealed Comparative Advantage," HSE Working papers WP BRP 244/EC/2021, National Research University Higher School of Economics.
    3. Jenny P. Danna-Buitrago & Rémi Stellian, 2022. "A New Class of Revealed Comparative Advantage Indexes," Open Economies Review, Springer, vol. 33(3), pages 477-503, July.
    4. Stellian, Rémi & Danna-Buitrago, Jenny P., 2022. "Revealed Comparative Advantage and Contribution-to-the-Trade-Balance indexes," International Economics, Elsevier, vol. 170(C), pages 129-155.
    5. Beňo, Michal, 2021. "E-working: Country Versus Culture Dimension," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    6. Dominika Choros-Mrozowska, 2020. "Changes and Comparisons in Pattern of Polish Chinese Trade within the “16+1” Format," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 327-342.
    7. Amador, João & Cabral, Sónia & Ramos Maria, José, 2007. "International Trade Patterns over the Last Four Decades: How does Portugal Compare with other Cohesion Countries?," MPRA Paper 5996, University Library of Munich, Germany.
    8. Martin Grančay & Tomáš Dudáš, 2019. "Bilateral trade flows and comparative advantage: does the size matter?," Society and Economy, Akadémiai Kiadó, Hungary, vol. 41(4), pages 397-413, December.
    9. João Amador & Sónia Cabral & José Maria, 2011. "A Simple Cross-Country Index of Trade Specialization," Open Economies Review, Springer, vol. 22(3), pages 447-461, July.
    10. Alex Hoen & Jan Oosterhaven, 2006. "On the measurement of comparative advantage," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(3), pages 677-691, August.
    11. Falkowski Krzysztof, 2017. "Long-Term Comparative Advantages of the Eurasian Economic Union Member States in International Trade," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(4), pages 27-49, December.
    12. Matkovski, Bojan & Zekić, Stanislav & Đokić, Danilo & Jurjević, Žana & Đurić, Ivan, 2022. "Export competitiveness of agri-food sector during the EU integration process: Evidence from the Western Balkans," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(1).
    13. Steven Brakman & Charles Van Marrewijk, 2017. "A closer look at revealed comparative advantage: Gross-versus value-added trade flows," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 61-92, March.
    14. Fanglei Wang & Jianbo Gao & Feiyan Liu, 2024. "Unlocking Africa’s development potential: insights from the perspective of global hierarchy and competition," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    15. Nendissa, Doppy Roy & Anindita, Ratya & Khoiriyah, Nikmatul & Sa’diyah, Ana Arifatus, 2021. "Consumption and Beef Price Changes on Demand in East Nusa Tenggara, Indonesia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    16. Bernardina Algieri, 2007. "Trade Specialisation Dynamics in Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(2), pages 232-258, June.
    17. Irena BENESOVA & Mansoor MAITAH & Lubos SMUTKA & Karel TOMSIK & Natalia ISHCHUKOVA, 2017. "Perspectives of the Russian agricultural exports in terms of comparative advantage," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(7), pages 318-330.
    18. Sukati, Mphumuzi, 2016. "COMESA’s Revealed Comparative Advantage in Common Agricultural Commodities," MPRA Paper 69989, University Library of Munich, Germany.
    19. Cima, Elizabeth Giron & Freire da Rocha-Junior, Weimar & Uribe-Opazo, Miguel Angel & Dalposso, Gustavo Henrique, 2021. "Modifiable Areal Unit Problem (MAUP): Analysis of Agriculture of the State of Paraná-Brazil," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    20. Ferto, Imre, 2008. "Comparative Advantage And Trade Competitiveness In Hungarian Agriculture," Bulletin of the Szent Istvan University 43326, Szent Istvan University, Faculty of Economics and Social Sciences.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5821-:d:1108787. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.