Mathematics in Education, Research and Applications (MERAA), 2023(9), 2
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Published online 2024-09-10
DOI:https://doi.org/10.15414/meraa.2023.09.02.71-84
The competitive edge through the scope of international trade: the evidence from world country data
Martin Maris
Slovak University of Agriculture in Nitra, Slovakia
Article Fulltext (PDF), pp. 71–84
- International trade indicates the country's competitive advantage on the global level. The paper's objective was to find substantial evidence about the country's competitiveness evaluation
on the global level based on export volume and income nexus. Assuming substantial variability of exports and persistent income gap between the countries, the quantile regression
concept was applied. The results indicate statistically significant differences among the countries measured in their respective quantiles. The most significant gap was found among the
low-medium income and high income and upper-middle income countries in export volume growth. Interestingly, low-income countries, such as upper-middle-income and high-income
countries, have shown similar export growth levels. Subsequently, the link between labour productivity and income on the country level was investigated. One-way ANOVA analysis has
shown statistically significant differences between labour productivity and the country's group classified by income. The between-group variation became substantial, whereas the within
variation suggests higher group homogeneity. The highest productivity was recorded in high-income countries and the lowest in low-income countries. However, reflecting the earlier
results of the study, low-income countries (lower quantile) have shown higher export growth than lower-middle-income countries centred on the median quantile. In general, export
volumes indicate a country's global competitiveness. Income level and productivity play a significant role in gaining an export advantage. However, the abundance of resources and their
valuation, as well as the export structure, can provide a competitive edge over the trading peer. The results partially reflect the trade theories, especially about countries gaining the
competitive edge in international trade because of the comparative advantage or using scale economics.
- Keywords: international trade, income, competitive advantage, global economy, quantile regression
- JEL Classification: F14, P52, R11