Revealed Comparative Advantage, Export Specialization Index and Product Concentration of Climate Smart Goods in Ecuadorian Exports: A Comparative Analysis with India

The Table II reveals that there are two products in which Ecuador has a comparative advantage in production in 2010. These two industrial codes have RCA>1 in 2010 and hence Ecuador has a comparative advantage in the production of such products. These products are

732111

Solar driven stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric Domestic appliances, and parts thereof, of iron or steel.

732190

Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric Domestic appliances, and parts thereof, of iron or steel.

Table II: Revealed Comparative Analysis for CSG Products for Ecuador in 2009 and 2010.

Reporter Name

Year

Product code

RCA

Ecuador

2009

732111

21.3407

Ecuador

2009

732190

0.9324

Ecuador

2009

841940

0.4864

Ecuador

2009

850163

0.7601

Ecuador

2010

732111

14.9076

Ecuador

2010

732190

4.1008

Source: Author's calculations from WITS data base. Please note that Ecuador has advantage in the production of CSG Products 732111 and 732190 in 2010.

The Export Specialization index helps us to identify markets for the CSG products in which Ecuador has a comparative advantage. Table III identifies the markets for two of the CSG products in which Ecuador has an advantage in production. They are Chile, Columbia and Peru in 2010.The export specialization (ES) index is a slightly modified RCA index, in which the denominator is usually measured by specific markets or partners. It provides product information on revealed specialization in the export sector of a country and is calculated as the ratio of the share of a product in a country's total exports to the share of this product in imports to specific markets or partners. A Value greater than one indicates advantage of producing and exporting into the identified markets.

Table III: Export Specialization Index for Specialized CSG Products for Ecuador in 2010

Country

Year

ES

Country Code

Country

Ind. Code

Product Description

Ecuador

2010

1.1882

CHL

Chile

732111

Solar driven stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel.

Ecuador

2010

1.2300

PER

Peru

732190

Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar nonelectric domestic appliances, and parts thereof, of iron or steel.

Ecuador

2010

1.3135

PER

Peru

732111

Solar driven stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel.

Ecuador

2010

1.9122

COL

Colombia

732111

Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar nonelectric domestic appliances, and parts thereof, of iron or steel.

Source: Author's work in WITS

One can also see the greatest product concentration in Ecuador's total exports of CSG products lies in product 732111(0.42). See Table IV below

Table IV: Product Concentration(PC) of CSG Products in Ecuador's Exports

COUNTRY

YEAR

IND. CODE

PC

Ecuador

2010

392010

0.0115

Ecuador

2010

392690

0.0124

Ecuador

2010

730820

0.0004

Ecuador

2010

730900

0.0024

Ecuador

2010

732111

0.4214

Ecuador

2010

732190

0.0336

Ecuador

2010

841182

0.0028

Ecuador

2010

841869

0.0029

Ecuador

2010

841950

0.0007

Ecuador

2010

841989

0.0020

Ecuador

2010

847989

0.0222

Ecuador

2010

848340

0.0003

Ecuador

2010

850161

0.0005

Ecuador

2010

850162

0.0008

Ecuador

2010

850163

0.0003

Ecuador

2010

850300

0.0015

Ecuador

2010

850440

0.0016

Ecuador

2010

853710

0.0018

Ecuador

2010

853931

0.0004

Ecuador

2010

903210

0.0011

Source: Author's work in WITS

A comparative analysis is done with India. India has comparative advantage in eighteen out of the 64 goods list of the Climate Smart Goods in 2010. These range from disaggregated articles of iron and steel, machine and mechanical appliances, chemical products and electric meters. (See the Table V below and appendix list I for details of the 64 products CSG list)

Table V: RCA for CSG Products in India in 2010

Country

Year

Ind. Code

RCA

Product Description

India

2010

850300

1.0576

Parts suit. for use solely/princ. with the machines of 85.01/85.02

India

2010

848360

1.1691

Clutches and universal joints (specifically for wind turbines).

India

2010

840490

1.1829

Parts for auxiliary plant for boilers, condensers for steam, vapor power unit.

India

2010

841990

1.2872

Medical, surgical or laboratory stabilizers.

India

2010

850161

1.3221

AC generators not exceeding 75 kVA (specifically for all electricity generating Renewable energy plants).

India

2010

730451

1.3299

Tubes, pipes & hollow profiles (excl. of 7304.10-7304.49), seamless, of circular cross-section, of alloy steel other than stainless steel, cold-drawn/ cold-rolled (cold-reduced)

India

2010

841090

1.4621

Hydraulic turbines and water wheels; parts, including regulators.

India

2010

902830

1.6653

Electricity meters, incl. calibrating meters there for

India

2010

730900

1.7287

Containers of any material, of any form, for liquid or solid waste, including for municipal Or dangerous waste.

India

2010

850231

1.8146

Electric generating sets and rotary converters; wind-powered.

India

2010

840510

1.8382

Producer gas or water gas generators, with or without purifiers.

India

2010

841940

2.0966

Distilling or rectifying plant.

India

2010

841012

2.4608

Hydraulic turbines & water wheels, of a power >1000kW but not >10000kW

India

2010

380210

2.6127

Activated carbon

India

2010

850680

2.7838

Fuel cells use hydrogen or hydrogen-containing fuels such as methane to produce an electric current, through an electrochemical process rather than combustion.

India

2010

840219

2.8811

Vapor generating boilers, not elsewhere specified or included hybrid.

India

2010

730820

3.0511

Towers and lattice masts for wind turbine.

India

2010

841989

4.4443

Machinery, plant or laboratory equipment whether or not electrically heated (excluding furnaces, ovens etc.) for treatment of materials by a process involving a change of temperature.

Source: Author's work Using WITS

Table VI is on Export Specialization Index(>1) helps us to identify markets for the Climate Smart Goods from India. It seems that industrial products-Fuel cells use hydrogen or hydrogen-containing fuels such as methane to produce an electric current, through an electrochemical process rather than combustion is identified for Hong Kong, China. Hydraulic turbines and water wheels of a power not exceeding 1,000 kW for Belgium. Electric generating sets and rotary converters; wind-powered for the United States. Gas turbines of a power not exceeding 5,000 kW for Netherlands. Containers of any material, of any form, for liquid or solid waste, including for municipal or dangerous waste for the United Kingdom and Hydraulic turbines & water wheels, of a power >10000kW for France in 2010.

Table VI: Export Specialization Index for CSG Products for India in 2010 and Identification of Markets for CSG Products of India

Country

Year

ES

Country

Ind. Code

Product Description

India

2010

1.0490

Hong Kong, China

850680

Fuel cells use hydrogen or hydrogen-containing fuels such as methane to produce an electric current, through an electrochemical process rather than combustion

India

2010

1.2273

Belgium

841011

Hydraulic turbines and water wheels of a power not exceeding 1,000 kW

India

2010

1.2381

United States

850231

Electric generating sets and rotary converters; wind-powered

India

2010

1.2630

Netherlands

841181

Gas turbines of a power not exceeding 5,000 kW

India

2010

1.3634

United Kingdom

730900

Containers of any material, of any form, for liquid or solid waste, including for municipal or dangerous waste

India

2010

2.3500

France

841013

Hydraulic turbines & water wheels, of a power >10000kW

Source: Author's work using WITS data base

The study works out the product concentration of CSG products in India's Total Exports (Table not shown): Industrial codes PVC or polyethylene plastic membrane systems to provide an impermeable base for landfill sites and protect soil under gas stations, oil refineries, etc. from infiltration by pollutants and for reinforcement of soil (392690) has O.13 % share in India's total exports. Machinery, plant or laboratory equipment whether or not electrically heated (excluding furnaces, ovens etc.) for treatment of materials by a process involving a change of temperature (841989) has 0.21% share. Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (854140) has 0.27% share. Parts suit.for use solely/princ. With the machines of 85.01/85.02 (850300) has 0.13% share in total exports of India and 850440(Static Converters) has .16% share.

 
< Prev   CONTENTS   Next >