An Index Analysis for the Assessment of the Competitiveness of Food Products in Ukraine

Abstract

This scientific article deals with the use of index analysis for the assessment of the competitiveness of national food products within the system of international agri-food production competitiveness.The primary objective of this scientific article is the calculation of the actual comparative advantages of separate countries of the world in foreign trade in agri-food products using the RCAij (relative trade advantages) index.First, the pattern of international competitiveness of the most important agri-food items exported by Ukraine is determined on the basis of calculation of RCAij, following which measures are proposed to raise the level of competitiveness of these national food products within world food markets.Calculations of the RCAij indices of revealed comparative advantage (RCA) have shown that Ukrainian agri-food industry in 2017 moved into third place in the level of international competitiveness.Comparative advantages, i.e. calculations using the actual comparative advantages index RCAij, were determined.These calculations demonstrate that the greatest comparative advantages in 2017 were shown by Argentina (RCAij=4.503),New Zealand (RCAij=4.361),Brazil (RCAij=2.558),and Chile (RCA-ij=1.324).These results show the great share of agri-food exports as compared to the overall exports of goods of the said countries, each with comparatively small volumes of food imports.The value of the index of actual comparative advantages of Ukraine reached 1.131, a result that demonstrates insignificant comparative advantages within the world market, which we link with the average volume of food products imports.

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