Competitiveness Analysis Method Competitiveness Analysis and Factors Affecting Trade Flow of Natural Rubber in International Market
8 RCA analysis method to investigate the condition of Hungarian agricultural
competitiveness in the international market. The results showed that an agricultural commodity in Hungary is not yet highly competitive in the
international market. RCA was also used in another previous study, conducted by Serin, et al. 2008. The research is looks at the tomato, olive oil and fruit
beverages industries in Turkey and their competitiveness in the EU market. The purpose of Serin’s research was to give the information to the government
regarding the competitiveness of the three goods from Turkey in the international market. This information was intended to help the Turkish government make a
policy to develop the commodity, which had the highest RCA. The result showed that the olive oil and fruit beverages industries have high competitiveness, while
the tomato industry does not. Wu, et al. 2012, focused on the rabbit meat industry in China, with the aim to provide information to the government in order
to develop this industry. The results from this study indicate that China’s rabbit meat industry is highly competitive in comparison to other exporting countries.
The RCA analysis method is also often used to see the competition among the producing countries of commodities around the world. Valenciano, et al.
2012 conducted a study, which aims to determine the competitiveness of pear commodities in the world market. In this study, Valenciano look at the condition
of each country’s competitiveness as a pear exporter in the world market, and then determined which countries have high competitiveness or low competitiveness.
Leishman, et al. 2012 also had interesting research employing the use of the RCA method. They conducted research regarding the wool commodities on the
world market. The results indicate that Australia is a country that has the highest competitiveness in the world for wool.
The result of the RCA method essentially aims to determine which countries are indeed having high competitiveness or low competitiveness in a good
compared to other exporting countries. If the results show a high level of competitiveness, then the country should maintain the condition, specialize to
these goods and trade with another country. On the other hand, if the results show a low level of competitiveness, then the country should improve the trade
condition and switch to specialize in other commodities. Morshed, et al. 2012 conducted research regarding the competitiveness of fruit litchi and longan fruit in
China. The results showed that the commodities are not competitive, so the researchers suggested to the government to improve the system of agribusiness
from upstream to downstream in both commodities, thus anticipating an increase in its competitiveness in the international market.
In addition to the RCA method, there are some researchers that use the Policy Analysis Matrix PAM as a method of analysis in their research. Besides
being able to determine the condition of competitiveness, PAM is also used by researchers with the intent of looking at the impact of government policies, while
the scope of the research is usually on a local basis, not international. The PAM method has been used in several research studies that are related to
competitiveness and the impact of policy on some commodities. Several examples of the PAM method have been conducted in Indonesia, primarily Wiji 2007
which focused on citrus commodities in West Kalimantan, while Nuryanti 2010 did a research about cocoa in Kudat District. From the results of these three
9 studies, the comparative advantage, competitive advantage and also the impact of
government policy on these three commodities can be established. Other previous usage of PAM was the research conducted by Mohanty,
Fang, and Chaudhary 2010, which aim to determine the impact of policies on the efficiency of cotton production in five cities in India. In line with Mohanty et
al., research conducted by Ngwira, et al. 2012 aims to verify the impact of policies on the efficiency of groundnut production in Malawi. Furthermore,
research conducted by Esmaili 2008 regarding the competitiveness of shrimp in southern Iran aims to investigate the differences of social advantages to gain
market shrimp in southern Iran. Additionally, Esmaili 2008 also discusses the impact of the subsidy policy on the competitiveness of commodity shrimp.
The purpose of the present research is to look at the general condition of the competitiveness of three main natural rubber-exporting countries in the
international market. In addition, researchers also want to identify the level of competitiveness of major competitor countries in terms of exports of natural
rubber in the international market. Researchers will not discuss the impact of government policies on trade in natural rubber. With these considerations, the
researcher chooses to utilize the RCA competitiveness analysis method, supported by panel data regression analysis for gravity models, which is expected to explain
the phenomena.