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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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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author Mekonnen Bogale
Muluken Ayalew
Wubishet Mengesha
author_facet Mekonnen Bogale
Muluken Ayalew
Wubishet Mengesha
author_sort Mekonnen Bogale
collection DOAJ
description 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
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spelling doaj.art-0701cf58229c4ac5b50d49eedba300902022-12-22T04:17:57ZengAfricaJournalsAfrican Journal of Hospitality, Tourism and Leisure2223-814X2020-12-019512051219https://doi.org/10.46222/ajhtl.19770720-78The Competitiveness of East African and South American Coffee in the World MarketMekonnen Bogale0Muluken Ayalew1Wubishet Mengesha2Management Department, College of Business and Economics, Jimma University, Jimma, EthiopiaManagement Department, College of Business and Economics, Jimma University, Jimma, EthiopiaManagement Department, College of Business and Economics, Jimma University, Jimma, EthiopiaThe 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 togetherhttps://www.ajhtl.com/uploads/7/1/6/3/7163688/article_16_9_5_1205-1219.pdfcoffeecompetitivenessexportimportperformance
spellingShingle Mekonnen Bogale
Muluken Ayalew
Wubishet Mengesha
The Competitiveness of East African and South American Coffee in the World Market
African Journal of Hospitality, Tourism and Leisure
coffee
competitiveness
export
import
performance
title The Competitiveness of East African and South American Coffee in the World Market
title_full The Competitiveness of East African and South American Coffee in the World Market
title_fullStr The Competitiveness of East African and South American Coffee in the World Market
title_full_unstemmed The Competitiveness of East African and South American Coffee in the World Market
title_short The Competitiveness of East African and South American Coffee in the World Market
title_sort competitiveness of east african and south american coffee in the world market
topic coffee
competitiveness
export
import
performance
url https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_16_9_5_1205-1219.pdf
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