Investigating the Competitiveness of Pakistan Agricultural Products

Year 2023, Volume: 3 Issue: 2, 39 - 57, 05.02.2024

Ramu Govındasamy Zeki Bayramoğlu Shahan Aziz Ufuk Soysal

Abstract

In a world where the free-market economy prevails, there is significant emphasis placed on the competitiveness of countries, companies, products, and individuals. This topic is widely discussed among academic, commercial, and public authorities. Competitiveness plays a crucial role in development, growth, commercial expansion, income generation, socio- economic welfare, and other important parameters. In fact, countries with high competitiveness tend to offer better socioeconomic welfare to their populations, making it a top priority in their agendas and objectives.
Competitive strategies vary depending on factors such as the product, region, time, and market structure. The market structure for agricultural products differs from that of other products, and ecological factors pose significant limitations on agricultural production. The primary goals of countries are to internationally market their products beyond ecological limitations at a favorable price, while also procuring goods they cannot produce without disrupting the domestic market. In order to achieve this, it is crucial to establish and maintain a competitive advantage in foreign trade. Consequently, the functioning of the free-market economy, which involves approximately 174 countries, is widespread worldwide. It is known that multiple countries produce the same product, and each country possesses competitive advantages such as price, quality, location, cultural and political relations, and economic power.
This study focuses on examining the competitiveness of important agricultural products grown in the province of Pakistan. The reduction of trade barriers creates competitive pressures and has the potential to lead to productivity gains, allowing for the restructuring of an economy towards its comparative advantage. To accomplish this, import and export data from the past 20 years will be utilized. In determining the competitiveness of Pakistan’s agricultural products, various formulations explaining absolute and relative competitive advantages, such as RCA, RXA, RMA, and RTM, will be employed.

Keywords

Agricultural Products, Competitiveness, Competitiveness Index, Pakistan

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