Determinants of global competitiveness of the dry bean industry in Myanmar
2008
Wah Wah Htun
This study aimed to identify the determinants of global competitiveness of the dry bean industry in Mayanmar. Results of t-test of means indicated that the average RCA (Revealed Comparative Advantage] value of Myanmar dry beans was significantly higher than that of China dry beans. The regression analysis showed that the key determinants of export competitiveness of Myanmar dry beans were exchanged rate, domestic production and domestic consumption of dry beans. Domestic production of dry beans was positively related to export competitiveness, while exchange rate and domestic consumption of dry beans were negatively related to export competitiveness of dry beans. The estimated domestic resource cost (DRC*) and resource cost ratio (RCR*) estimated revealed that Myanmar has a competitive advantage in producing dry beans. The sensitivity analysis using the Policy Analysis Matrix (PAM) showed that DRC* was sensitive to changes in cost of electricity, border price of dry beans and dry bean yield. For quality competitiveness, dry bean exporters in Myanmar have followed the local standards set by the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). All the dry beans traded in the world market must pass the Codex Alimentarius standard which is mor edetailed than the UMFCCI standard. Hence, Myanmar needs to meet the Codex standard although it is in the top position in dry bean export in the world market because in the long-run, global competitiveness depends on the quality of the product.
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