Export Performance of Agricultural Commodities in ECO Member States Using the Balassa Index

Ayaz Khan Naseri¹ , Mohammad Naseer Haidari²

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.4 , pp.23-28, Apr-2024

Online published on Apr 30, 2024

Copyright © Ayaz Khan Naseri, Mohammad Naseer Haidari . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The paper compares the export performance of five agricultural commodities before and after the establishment of the Economic Cooperation Organization (ECO) bloc and the ECO trade agreement. Secondary data from the Food and Agriculture Organization website was collected to understand the comparative advantage in export performance. The Balassa index was computed to determine the comparative advantage. The study found that after the ECO bloc and ECO trade agreement, the comparative advantage of exporting five agricultural commodities to countries like Iran, Pakistan, and Turkey has not significantly increased. Afghanistan, for example, has no comparative advantage in flour of pulses and other fresh vegetables but can focus on cereals and cotton exports. Iran`s dried fruit showed a strong comparative advantage in 1980 but dwindled significantly in 2021, which is supported by the positive value of SRCA. The study suggests that countries with strong, medium, and weak comparative advantages should accelerate export promotion policies, upsurge participation in regional trade fares, and improve product quality to remain competitive in regional and international markets.

Key-Words / Index Term :
Trade, Balassa index, Stability, ECO bloc, RCA, RSCA

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