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Journal of Business & Retail Management Research
Vol-12, Issue 3, April 2018
ISSN 1751-8202 (Print) ISSN 2056-6271 (Online)
www.jbrmr.com

Comparative advantages of Kazakhstan assessed by the Balassa Index: consistently competitive exports are limited to raw materials with low added value
Diana Madiyarova L.N. Gumilyov Eurasian National University Department of Economics, Kazakhstan Ainur Amirbekova L.N. Gumilyov Eurasian National University Department of Economics, Kazakhstan Marat Syrlybayev L.N. Gumilyov Eurasian National University Department of Economics, Kazakhstan


KEY WORDS

Export competitiveness, competitive advantage, revealed comparative advantage, Balassa index

ABSTRACT

          The aim of this study is to determine the competitive advantages of Kazakhstan in trading with other countries based on revealed comparative advantages, in which the interlinked commodity exchanges will be developed in the medium-term. This research applies the index of comparative advantages. The paper presents an empirical analysis of the competitive advantages of Kazakhstan export products. The Balassa Index was proposed for Kazakh six-digit HS product category level, the choice of which was due to their modest design of calculation and simplicity in interpreting the results.
          The main results reveal that Kazakhstan shows a comparative advantage in a number of sectors; the product groups with a strong competitive advantage show a significant variation in comparative advantage. The results can be applied to assess Kazakhstan’s export competitiveness and the restructuring of its domestic trade policy.

 

DOI: https://doi.org/10.24052/JBRMR/V12IS03/ART-18




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