BIMSTEC’S INCIPIENT COMPETITIVE ADVANTAGE AND TRADE SPECIALISATION IN RAW SUGAR

Abstract

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Currently, there is a significant global focus on the growing impact of Asian nations within the realm of international trade. In the framework of 48 Asian nations, the raw sugar sector of BIMSTEC underwent a notable reorganisation, leading to enhanced revenue and employment opportunities. This study sought to explore the competitive advantage and trade specialisation of the member nations of BIMSTEC in the raw sugar commodities sector. Effective marketing strategies have significantly contributed to the enhancement of visibility and demand for these commodities in global markets, thereby further driving competitiveness. The data was obtained from the Observatory of Economic Complexity (OEC) database, and the analysis was conducted using “R” software. Furthermore, pertinent data sources were consulted in the literature review to guarantee the precision of the analysis concerning the theoretical framework. Utilising theoretical frameworks, the RSCA and Lafay indexes were applied to evaluate the competitive advantage and trade specialisation of raw sugar among the BIMSTEC member nations during the period 2005-2022. The study demonstrated that India and Thailand exhibited the greatest comparative advantage within the region, focusing their expertise on the trade of raw sugar products. The study further articulated the domains of potential collaboration or competition and proposed several overarching recommendations for each nation. Policymakers may draw upon the insights derived from this research to evaluate the respective nation’s competitive standing.