Foreign trade competitiveness of the fragile five : Comparative analysis

Competitiveness is a force that enables countries to be more effective in the global market. On the other hand, competitiveness determines in the relative sense the strong and weak aspects of the relevant country in a given country. Revealed Comparative Advantage (RCA) indices are used to analyze and to compare export competitiveness of countries in global markets. In this respect, an increase in the score of the Revealed Comparative Advantages means that is an increase in the competitiveness of the country in question. This study includes Brazil, India, Indonesia, South Africa and Turkey, called Fragile Five Economics the most adversly affected economies from FED's decision in May 2013. In this respect, Balassa and Vollrath's RCA Index has been calculated and interpreted in order to enable a comparative analysis of the export competitiveness of the countries concerned for the years 2000-2014. In addition, the Comparative Export Performance Index (CEP) has been calculated so that the export competitiveness of countries can be compare healthier. In addition to the export competitiveness of the Fragile Five Economics, Net Trade, Export-Import Ratio and Export Similarity Index have been calculated in order to determine the level of domestic specialization and to present export similarities. The results of these analyzes have showed that the Fragile Five Economics have competitiveness in the exports of mostly raw materials and labor intensive goods. This suggests have exhibited that the economies in question are specialized in the production and export of low value added goods. If the Fragile Five Economics were specializing in the export of AR-GE and technology-based products with high value added at international markets, they could be among developing countries. Thus, this situation can be difficult it to capture advanced economies.