The Competitiveness of East African and South American Coffee in the World Market

The purpose of this study was to investigate competitiveness of coffee of East African countries relative to South Americans in the world market. The study used Normalized Revealed Comparative Advantage (NRCA) and Relative Trade Advantage (RTA) indexes as a measure of competitiveness based on second...

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Bibliographic Details
Main Authors: Mekonnen Bogale, Muluken Ayalew, Wubishet Mengesha
Format: Article
Language:English
Published: AfricaJournals 2020-12-01
Series:African Journal of Hospitality, Tourism and Leisure
Subjects:
Online Access:https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_16_9_5_1205-1219.pdf
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Summary:The purpose of this study was to investigate competitiveness of coffee of East African countries relative to South Americans in the world market. The study used Normalized Revealed Comparative Advantage (NRCA) and Relative Trade Advantage (RTA) indexes as a measure of competitiveness based on secondary data from ITC trade database covering between 2001 and 2018. The findings show that East African countries and South Americans coffee has competitive advantage in the world coffee market. In addition, the study found that, all East African and South American countries achieved consistent competitiveness trend with the exception of the Ecuadorian coffee. The findings of this study give managers powerful evidence on how their industry competitiveness changes over time and rank of their respective country. The coffee competitiveness among the East African and South American countries is believed to inform the practitioners in the coffee industry to make necessary adjustments that might be needed. It is the first study to investigate the coffee competitiveness at two regions and used NRCA and RTA indexes together
ISSN:2223-814X