Evaluating Uganda’s preferential market access; trade intensity, comparative advantage and the potential for trade

IF 2.9 Q2 BUSINESS
Aaron Ecel, Godwin Mwesigye Ahimbisibwe, Dennis Nuwagaba, Mariah Nakintu Nankya, Shareen Nahurira
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引用次数: 0

Abstract

Purpose

Preferential market access is a pillar of the enabling clause in international trade, and as such has received scholarly attention in the recent past. This study aims to empirically examine intensity and utilisation of Uganda’s preferential market access.

Design/methodology/approach

Secondary data at the six-digit level of the harmonised system was sourced from the International Trade Centre’s and UN COMTRADE’s Trade Map database on trade flows to compute; trade intensity indices, Balsa’s revealed comparative advantage (RCA) indices and the existing potential trade. The time period was 2013–2022.

Findings

It is evident that Uganda is not taking full advantage of its preferential market access. The findings of the trade intensity analysis revealed that the strength of trade relations between Uganda and its preferential markets has been consistently weak in the period 2013–2022, while the intensity of trade relations with its FTA partners has been strong. The RCA results revealed that all Uganda’s agricultural exports to its preferential markets have a comparative advantage, with exports of roses reporting an exceptionally high RCA relative to other agricultural exports. The RCA results also show that the comparative advantage of Uganda’s coffee exports recovered after a significant fall in the period 2014–2022. The analysis of the existing potential for trade reveals a disproportionally low market share held by Uganda across all product lines, notably, only 2.3% of the US$29bn coffee imports in its preferential markets.

Research limitations/implications

One limitation of this study is that it primarily relied on quantitative data from the International Trade Centre and thus lacks an exhaustive understanding of the circumstances at the export firm level. Qualitative data, such as interviews with exporters and policymakers, could provide deeper insights into the specific challenges and opportunities faced by Ugandan businesses in these markets.

Practical implications

This paper highlights the need for additional trade facilitation measures to address preferential market access bottlenecks such as stringent rules of origin and call for an aggressive government intervention in enhancing the export readiness of SMEs in Uganda. In addition, the paper is informative to Uganda’s exporters regarding the existing and potential increase in their exports to international markets.

Originality/value

The strength of Uganda’s trade relations with its preferential markets is empirically examined in this paper and provides useful insights for enhancing utilisation of preferential market access by beneficiary countries.

评估乌干达的优惠市场准入;贸易强度、比较优势和贸易潜力
目的优惠市场准入是国际贸易中有利条款的支柱,因此近年来受到学术界的关注。本研究旨在对乌干达优惠市场准入的强度和利用情况进行实证研究。设计/方法/途径从国际贸易中心和联合国商品贸易统计数据库的贸易流贸易地图中获取了统一系统六位数级的辅助数据,用于计算贸易强度指数、巴尔萨比较优势指数(RCA)和现有潜在贸易。分析结果表明,乌干达没有充分利用其优惠市场准入的优势。贸易强度分析结果显示,在 2013-2022 年期间,乌干达与其优惠市场之间的贸易关系强度一直很弱,而与其自由贸易协定伙伴之间的贸易关系强度却很强。RCA 结果显示,乌干达向其优惠市场出口的所有农产品都具有比较优势,其中玫瑰出口相对于其他农产品出口而言具有特别高的 RCA。RCA 结果还显示,乌干达咖啡出口的比较优势在 2014-2022 年期间大幅下降后有所恢复。对现有贸易潜力的分析表明,乌干达在所有产品系列中所占的市场份额都过低,尤其是在其优惠市场 290 亿美元的咖啡进口额中仅占 2.3%。定性数据,如与出口商和政策制定者的访谈,可以更深入地了解乌干达企业在这些市场上面临的具体挑战和机遇。 本文强调需要采取更多贸易便利化措施,以解决优惠市场准入瓶颈,如严格的原产地规则,并呼吁政府积极干预,提高乌干达中小企业的出口准备程度。此外,本文还为乌干达出口商提供了有关其对国际市场出口的现有和潜在增长的信息。 独创性/价值本文通过实证研究了乌干达与其优惠市场的贸易关系的强度,并为受益国加强对优惠市场准入的利用提供了有用的见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.60
自引率
17.20%
发文量
50
期刊介绍: The following list indicates the key issues in the Competitiveness Review. We invite papers on these and related topics. Special issues of the Review will collect papers on specific topics selected by the editors. Definition/conceptual framework of competitiveness Competitiveness diagnostics and rankings Competitiveness and economic outcomes Specific dimensions of competitiveness Competitiveness and endowments Competitiveness and economic development Location and business strategy International business and the role of MNCs Innovation and innovative capacity Clusters and cluster initiatives Institutions for competitiveness Public policy (e.g., innovation, cluster development, regional development) The Competitiveness Review aims to publish high quality papers directed at scholars, government institutions, businesses and practitioners. It appears in collaboration with key academic and professional groups in the field of competitiveness analysis and policy, including the Microeconomics of Competitiveness (MOC) network and The Competitiveness Institute (TCI) practitioner network for competitiveness, clusters and innovation.
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