M. Hossain, M., K. Sen, S., S. Islam, M., K. Chakma, M., Sh. Hossain, M. (2025). TRADE SPECIALIZATION AND COMPETITIVENESS OF THE INDIAN ONION MARKET IN RELATION TO BIMSTEC MEMBER NATIONS. , 23(1), 470-492. doi: 10.32649/ajas.2025.155429.1486
M. M. Hossain; S. K. Sen; M. S. Islam; M. K. Chakma; M. Sh. Hossain. "TRADE SPECIALIZATION AND COMPETITIVENESS OF THE INDIAN ONION MARKET IN RELATION TO BIMSTEC MEMBER NATIONS". , 23, 1, 2025, 470-492. doi: 10.32649/ajas.2025.155429.1486
M. Hossain, M., K. Sen, S., S. Islam, M., K. Chakma, M., Sh. Hossain, M. (2025). 'TRADE SPECIALIZATION AND COMPETITIVENESS OF THE INDIAN ONION MARKET IN RELATION TO BIMSTEC MEMBER NATIONS', , 23(1), pp. 470-492. doi: 10.32649/ajas.2025.155429.1486
M. Hossain, M., K. Sen, S., S. Islam, M., K. Chakma, M., Sh. Hossain, M. TRADE SPECIALIZATION AND COMPETITIVENESS OF THE INDIAN ONION MARKET IN RELATION TO BIMSTEC MEMBER NATIONS. , 2025; 23(1): 470-492. doi: 10.32649/ajas.2025.155429.1486

TRADE SPECIALIZATION AND COMPETITIVENESS OF THE INDIAN ONION MARKET IN RELATION TO BIMSTEC MEMBER NATIONS

Anbar Journal of Agricultural Sciences
Volume 23, Issue 1, June 2025, Pages 470-492    PDF (914.59 K)
Document Type: Research Paper
DOI: 10.32649/ajas.2025.155429.1486
Authors
M. M. Hossain* 1; S. K. Sen2; M. S. Islam3; M. K. Chakma4; M. Sh. Hossain5
1Department of Finance and Banking, Comilla University, Cumilla, Bangladesh
2Department of Commerce, Tripura University, Agartala, India
3Department of Accounting, Kishoreganj University, Kishoreganj, Bangladesh
4ICSSR Doctoral Scholar, Department of Commerce, Tripura University, Agartala, India
5Bangladesh Institute of Business and Technology (BIBT), Narayanganj, Bangladesh
Abstract
This study examined the extent of competitiveness in onion trade specialization and the comparative advantage between India and other BIMSTEC member nations from 2005 to 2021. It used secondary data from the OEC database and factored in the repeated pandemics and trade frictions. The findings indicate that India exhibited greater competitiveness in the onion market within the BIMSTEC region. The study concluded that India has a notable advantage over other BIMSTEC member nations in onion production and export. The study employed the Revealed Comparative Advantage Index (RCA), including the Balassa, Lafay, and the Grubel-Lloyd Indices, to determine the level of intra-industry trade and the trade balance index (TBI) to determine competitiveness level. India benefits from a significant edge in onion exports due to its high production capacity and strategic geographical location near major importing nations. The study recommended that India expand its market globally since more than half of onion exports are transacted amongst BIMSTEC nations, especially Bangladesh and Bhutan, the world’s largest producer of onions. India must rethink its strategies to become the top commodity exporter globally
Keywords
BIMSTEC; Trade; Reveal Comparative Advantage; Onion; Trade Balance Index
References
  1. Ahmad, N., and Kalim, R. (2013). Changing revealed comparative advantage of textile and clothing sector of Pakistan: Pre-and post-quota analysis. Pakistan Journal of Commerce and Social Sciences (PJCSS), 7(3): 520-544.
  2. Akgüngör, S., Barbaros, R. F., and Kumral, N. (2002). Competitiveness of the Turkish fruit and vegetable processing industry in the European Union market. Russian and East European Finance and Trade, 34-53.
  3. Aksoy, A., Kaymak, H.Ç. and Avcıoğlu, Ü. (2020). Walnut (Juglansregia L.) Trade: Competition power of Turkey with Balkan countries. Scientific Papers Series Management, Econ Engineering in Agriculture and Rural Development, 20(4): 11-18.
  4. Allegra, V., Zarbà, C., La Via, G., and Zarbà, A. S. (2019). Why the new orange juice consumption model favors global trade and growth in orange production. British Food Journal, 121(9): 1954-1968. https://doi.org/10.1108/BFJ-05-2019-0316.
  5. Algieri, B. (2004). Trade Specialisation Patterns: The case of Russia. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1015446.
  6. Anggrasari, H., and Mulyo, J. H. (2019). The trade of Indonesian spice comodities in international market. Agro Ekonomi, 30(1): 13-27. https://doi.org/10.22146/ae.41665.
  7. Balassa, B. (1965). Tariff protection in industrial countries: an evaluation. Journal of Political Economy, 73(6): 573-594.
  8. Behrens, K., Gaigné, C., Ottaviano, G. I. P., and Thisse, J.-F. (2007). Countries, regions and trade: On the welfare impacts of economic integration. European Economic Review, 51(5): 1277-1301. https://doi.org/10.1016/j.euroecorev.2006.08.005.
  9. Bernatonyte, D., Burksaitiene, D., and Rimiene, K. (2013). Trade specialization pattern of Lithuania. Economics and Management, 18(4): 661-665. https://doi.org/10.5755/j01.em.18.4.5474.
  10. Bernatonytė, D., and Juškienė, G. (2008). Development of intra-industry trade among the Baltic States. Social Research, (3): 32-41.
  11. Bernhofen, D. M., and Hafeez, Z. (2001). Oligopolistic Competition and Intra‐industry Trade: Evidence From the OECD. Australian Economic Papers, 40(1): 77-90. https://doi.org/10.1111/1467-8454.00114.
  12. Bhattacharya, P. (2019). Determinants of export competitiveness of fresh fruits in India. International Journal of Sustainable Economy, 11(1): 61-80. https://doi.org/10.1504/IJSE.2019.096567.
  13. Biernacka, J. (2021). Analysis of intra-industry mutual trade in the furniture manufacturing industry between the V4 and the EU-27 countries using the Grubel-lloyd index. Acta Facultatis Xylologiae Zvolen res Publica Slovaca, 63(2): 175-188. DOI: 10.17423/afx.2021.63.2.15.
  14. Boffa, F., Bolatto, S., and Zanetti, G. (2010). Specializzazione produttiva e crescita: un'analisi mediante indicatori. In Economia Aziendale e Management. Scritti in onore di Vittorio Coda, 2: 1739-1758.
  15. Brulhart, M., and Thorpe, M. (1999). East Asian export growth, intra-industry trade and adjustment. Asia Pacific Journal of Economics and Business, 3(2): 34-47.
  16. Burianova, J., and Belova, A. (2012). The competitiveness of agricultural foreign trade commodities of the CR assessed by way of the Lafay Index. Agris on-line Papers in Economics and Informatics, 4(4): 27-36. http://dx.doi.org/10.22004/ag.econ.146274.
  17. Caselli, P., and Zaghini, A. (2005). International specialization models in Latin America: the case of Argentina. Bank of Italy, Economic Research and International Relations Area.
  18. Çepni, E., and Köse, N. (2003). Intra-Industry Trade Patterns Of Turkey: Apanel Study. Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 5(3): 13-28.
  19. Çicek, R., and Bashimov, G. (2016). Determination of central Asia’s comparative advantage in cotton trade. International Journal of Management Economics and Business, 12(28): 1-14.
  20. Cimpoieş, L. (2013). Agri-food trade-a path to agricultural development of Moldova. Scientific papers. Series “Management, Economic Engineering in Agriculture and Rural Development”, 49-56.
  21. Corden, W. M. (1972). Economies of scale and customs union theory. Journal of Political Economy, 80(3, Part 1): 465-475.
  22. Food and Agriculture Organization (FAO). (2021). FAOSTAT Statistics Database of the Food and Agricultural Organization of the United Nations (FAO); Food and Agriculture Organization (FAO).
  23. Forslid, R., and Wooton, I. (2003). Comparative advantage and the location of production. Review of International Economics, 11(4): 588-603. https://doi.org/10.1111/1467-9396.00405.
  24. Grigorovici, C. (2009). Analysing the degree of specialization in Romania’s services trade.  Romanian Journal of Economic Forecasting, 10(1): 95-115.
  25. Harrison, G. W., Rutherford, T. F., and Tarr, D. G. (1996). Increased competition and completion of the market in the European Union: static and steady state effects. Journal of Economic Integration, 332-365.
  26. HC, Y., and Srivastava, S. K. (2020). An application of Markov chain Model to study on trade direction of export of FCV tobacco from India. Scientific Agriculture, 4: 73-77.
  27. Ischukova, N., and Smutka, L. (2014). Russia’s intra-industry trade in agricultural products: the extent and major trends. Journal of central European green innovation, 2(1): 75-89. http://dx.doi.org/10.22004/ag.econ.171038.
  28. Isemonger, A. G. (2000). The estimation of intra-industry trade in South Africa.  Development Southern Africa, 17(1): 53-63. https://doi.org/10.1080/03768350050003406.
  29. Jha, G. K., Suresh, A., Punera, B., and Supriya, P. (2019). Growth of horticulture sector in India: Trends and prospects. The Indian Journal of Agricultural Sciences, 89(2): 314-321.
  30. Kanaka, S., and Chinadurai, M. (2012). A study of comparative advantage of Indian agricultural exports. Journal of Management and Science, 2(3): 175-183.
  31. Lafay, G. (1992). The measurement of revealed comparative advantages. International Trade Modelling, 209-234.
  32. Liesner, H. H. (1958). The European common market and British industry. The Economic Journal, 68(270): 302-316. https://doi.org/10.2307/2227597.
  33. Lovely, M. E., and Nelson, D. R. (2000). Marginal intraindustry trade and labor adjustment. Review of International Economics, 8(3): 436-447. https://doi.org/10.1111/1467-9396.00233.
  34. Minoia, G., Mumatz, W., and Pain, A. (2014). The social life of the onion: the informal regulation of the onion market in Nangarhar, Afghanistan. Secure Livelihoods Research Consortium.
  35. Mushanyuri, B. E., and Mzumara, M. (2013). An assessment of comparative advantage of Mauritius. European Journal of Sustainable Development, 2(3): 35-35. https://doi.org/10.14207/ejsd.2013.v2n3p35.
  36. Narayan, S., and Bhattacharya, P. (2019). Relative export competitiveness of agricultural commodities and its determinants: Some evidence from India. World Development, 117: 29-47. https://doi.org/10.1016/j.worlddev.2018.12.013.
  37. (2023). https://oec.world/en.
  38. Oger, G., Doring, M., Alessandrini, B., and Ferrant, P. (2007). An improved SPH method: Towards higher order convergence. Journal of Computational Physics, 225(2): 1472-1492. https://doi.org/10.1016/j.jcp.2007.01.039.
  39. Pawlak, K., and Łukasiewicz, J. (2022). Does intra-industry specialization enhance or limit comparative advantage? Evidence from the world citrus fruit trade. Agricultural Economics, 68(9): 338-347. https://doi.org/10.17221/163/2022-AGRICECON.
  40. Peker, A. E. (2015). Turkey cereals and Baklagil Sector of the substance competitive power against the European Union market. Faculty of Economics and Administrative Sciences Journal, 5(2): 1-20.
  41. Pilinkiene, V. (2014). Evaluation of International Competitiveness Using the Revealed Compar‑ative Advantage Indices: The Case of Baltic States. Mediterranean Journal of Social Sciences, 5(13): 353-359. DOI:10.5901/ichss-2014-vol-01.
  42. Platania, M. (2014). Trade advantage of Italian industrial districts: Persistence and change. Regional and Sectoral Economic Studies, 14(2): 39-52.
  43. Platania, M., Rapisarda, P., and Rizzo, M. (2015). Italian trade specialization: persistence and change in regional agri-food production. AGRIS on-line Papers in Economics and Informatics, 7(4): 101-109. http://dx.doi.org/10.22004/ag.econ.231897.
  44. Rundassa, M. W., Azene, D. K., and Berhan, E. (2019). Comparative advantage of Ethiopian textile and apparel industry. Research Journal of Textile and Apparel, 23(3): 244-256. https://doi.org/10.1108/RJTA-08-2018-0049.
  45. Scott, M. F. G. (1975). Intra-industry trade: the theory and measurement of international trade in differentiated products. The Economic Journal, 85(339): 646-648. https://doi.org/10.2307/2230917.
  46. Shelburne, R. C. (1993). Changing trade patterns and the intra-industry trade index: A note. Review of World Economics, 129(4): 829-833.
  47. Škuflić, L., and Botrić, V. (2008). Analysis of the Cohesive Trade Elements between the European Union and the SEEC-7. Eastern European Economics, 46(1): 6-23. https://doi.org/10.2753/EEE0012-8775460101.
  48. Sitanini, A. (2022). Competitiveness of Indonesian coffee exports to Japan. Perwira Journal of Economics and Business, 2(1): 72-79. https://doi.org/10.54199/pjeb.v2i1.83.
  49. Soo, K. T. (2016). Intra‐industry trade: A Krugman–Ricardo Model and Data. Economica, 83(330): 338-355. https://doi.org/10.1111/ecca.12173.
  50. Stone, J. A., and Lee, H. H. (1995). Determinants of intra-industry trade: A longitudinal, cross-country analysis. Weltwirtschaftliches Archiv, 131(1): 67-85. https://doi.org/10.1007/BF02709072.
  51. Suntharalingam, C., Ahmad, T. M. A. T., Ali, A. K., Rusli, R., and Halim, N. A. (2011). Competitiveness of Malaysia’s fruits in the global agricultural and selected export markets: Analyses of Revealed Comparative Advantage (RCA) and Comparative Export Performance (CEP). Economic and Technology Management Review, 6: 1-17.
  52. Tridge Global Food Sourcing and Data Hub (2023). Available online: https https://www.tridge.com.
  53. Terin, M. and Yavuz, F. (2018). An analysis of international competitiveness of Turkey’s cheese sector in comparison with European Union countries. Turkish Journal of Agriculture - Food Science and Technology, 6(9): 1243-1250. https://doi.org/10.24925/turjaf.v6i9.1243-1250.2023.
  54. Terin, M., Yildirim, I., Aksoy, A. D. E. M., and Sari, M. M. (2018). Competition power of Turkey's honey export and comparison with Balkan Countries. Bulgarian Journal of Agricultural Science, 24(1): 17-22.
  55. Torok, A., and Jambor, A. (2016). Determinants of the revealed comparative advantages: The case of the European ham trade. Agricultural Economics/Zemědělská Ekonomika, 62(10): 471-481. DOI: 10.17221/177/2015-AGRICECON.
  56. ShariatUllah, M., and Kazuo, I. (2012). Dynamics of comparative advantage and export potentials in Bangladesh. The Ritsumeikan Economic Review, 61(4): 1-14.
  57. Viner, J. (1950). The customs union issue. Carnegie Endowment for International Peace. New York. London: Stevens and Sons Ltd, pp. viii, 221. American Political Science Review, 44(4): 1055-1055.
  58. Webster, A., Fletcher, J., Hardwick, P., and Morakabati, Y. (2007). Tourism and empirical applications of international trade theory: a multi-country analysis. Tourism Economics, 13(4): 657-674. https://doi.org/10.5367/000000007782696041.
  59. Widodo, T. (2009). Modified Grubel-Lloyd index: Intra-industry trade and intra-regional trade in East Asia. In MPRA Paper 77992; University Library of Munich: Munich, Germany, 1-27.
  60. Widodo, T. (2008). Dynamic changes in comparative advantage: Japan “flying geese” model and its implications for China. Journal of Chinese Economic and Foreign Trade Studies, 1(3): 200-213. https://doi.org/10.1108/17544400810912365.
  61. Zaghini, A. (2003). Trade advantages and specialisation dynamics in acceding countries (No. 249). ECB Working paper.
  62. Zaghini, A. (2005). Evolution of trade patterns in the new EU member states. Economics of transition, 13(4): 629-658. https://doi.org/10.1111/j.0967-0750.2005.00235.x.
Statistics
Article View: 1,212
PDF Download: 246


Journal Management System. Powered by iJournalPro.com