Back to the Agriculture - the Development of the Comparative Advantage of Sudan’s Commodities

Yagoub Elryah^1,

¹Research School for Southeast Asian Studies, Xiamen University Xiamen, P. R. China

Cite this paper:
Yagoub Elryah. Back to the Agriculture - the Development of the Comparative Advantage of Sudan’s Commodities. Journal of Finance and Economics. 2015; 3(1):1-5. doi: 10.12691/jfe-3-1-1

Abstract

In recent years, the Dutch disease created by losing the oil revenues has encouraged countries to diversify the comparative advantage in other products and services, and for many countries including Sudan agricultural products are at the top of the exports. Hence, this paper analyzed the comparative advantages of Sudan’s agricultural products and to show the extent to which products that Sudan should specialize in to regain some of missed comparative advantages. In order to figure out this, data were extracted from the International Trade Centre (ITC)’s Trade map, the UNCTAD COMTRADE database and Central Bank of Sudan. In this study, we used the Revealed Comparative Advantage (RCA) method to analyze the direction of changes of Sudanese comparative advantages for the recent period from 2000 to 2013. The study found that Sudan has opportunity to regain it is missed comparative advantages for products that have recently specialized and experienced in. The Cotton, animal resources and Gum Arabic products are found most products that Sudan has a comparative advantage in.

Keywords:
comparative advantage cotton gum arabic RCA

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