Competitiveness in the trade of spices: A global evidence

Attila Jambor1, Andrea Timea Toth2, Domonkos Koroshegyi1
1 Department of Agricultural Economics and Rural Development, Corvinus University of Budapest, Fővám tér 8, 1093-Budapest, Hungary
2 Szent Istvan University, Godollo, Hungary

Abstract

Jambor, A., Toth, T. T., & Koroshegyi, D. (2018). Competitiveness in the trade of spices: A global evidence. Bulgarian Journal of Agricultural Science, 24(5), 729–736

Comparative advantage is an important indicator in the analysis of international trade flow, however, in empirical studies on agriculture it is often neglected. In this article we aim to analyse comparative advantage in global spices trade and to test stability of trade indices as well as to identify the determinants behind different country performances. Our paper draws global spices trade data from the period 1991 to 2015. Results suggest that global spice trade is pretty much concentrated in Guatemala, Sri Lanka and India obtaining the highest comparative advantages in 1991-2015. However, duration and stability tests indicate that trade advantages have weakened for the majority of the countries concerned.

Keywords: global spice trade; comparative advantage; determinants

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