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Revealed Comparative Advantage Method for Solving Multicriteria Decision-making Problems

Gogodze Joseph

Foundations of Computing and Decision Sciences

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2021

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Vol. 46, No. 1

85--96

EN

This study proposes and analyzes a new method for the post-Pareto analysis of multicriteria decision-making (MCDM) problems: the revealed comparative advantage (RCA) assessment method. An interesting feature of the suggested method is that it uses the solution to a special eigenvalue problem and can be considered an analog/modification in the MCDM context of well-known ranking methods including the authority-hub method, PageRank method, and so on, which have been successfully applied to such fields as economics, bibliometrics, web search design, and so on. For illustrative purposes, this study discusses a particular MCDM problem to demonstrate the practicality of the method. The theoretical considerations and conducted calculations reveal that the RCA assessment method is self-consistent and easily implementable. Moreover, comparisons with well-known tools of an MCDM analysis shows that the results obtained using this method are appropriate and competitive. An important particularity of the RCA assessment method is that it can be useful for decision-makers in the case in which no decision-making authority is available or when the relative importance of various criteria has not been preliminarily evaluated.

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Comparative analysis of wood and semi-finished wood product trade of Slovakia and its Central European trading partners

Parobek J., Paluš H., Kalamárová M., Loučanová E., Križanová A., Repková Štofková K.

Drewno : prace naukowe, doniesienia, komunikaty

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2016

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vol. 59, nr 196

184--194

EN

The aim of this paper was analyse the competitiveness of wood and semi-finished wood products in Slovakia in comparison with selected Central European countries. The research applied the commonly used competitiveness index, the Revealed Comparative Advantage (RCA) index, to analyse the position and changes in trade competitiveness of Slovakia during the period 2009-2013. Additionally, the Comparative Price Level (CPL) index was used to evaluate the differences in foreign trade prices for industrial roundwood and selected semifinished wood products in order to examine the position of the Slovak wood and wood product trade. The results showed that Slovakia had the strongest comparative advantage in the trade in industrial roundwood due to its sufficient wood resources and competitive prices.

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Comparative Advantage of Textiles and Clothing: Evidence for Bangladesh, China, Germany and Turkey

Karaalp H. S., Yilmaz N. D.

Fibres & Textiles in Eastern Europe

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2013

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Vol. 21, no. 1 (97)

14--17

EN

In this study, the comparative advantage of four countries in the world: Bangladesh, China, Germany and Turkey is analysed with respect to the US and the EU-15 textiles and cloth-ing markets by employing Balassa’s revealed comparative advantage (RCA) index for the period 2000-2010. This country selection was made because all these countries rank in the top ten textile and clothing exporters in the world and they represent economies from four different income levels. The results have revealed that Bangladesh, China and Turkey have a strong comparative advantage in both the textile and clothing markets of the world, the US and the EU-15, while Germany has no significant comparative advantage in any of these markets. The findings show that the Bangladesh clothing industry has a substantially higher comparative advantage in all three markets compared to the other countries. It has also been found that Turkish textiles show the strongest comparative advantage in all three markets, whereas the comparative advantage of Chinese textiles indicates a slightly increasing trend in all aforementioned markets.

PL

W pracy przeanalizowano przewagę komparatywną czterech krajów na tekstylno-odzieżowych rynkach światowych, Stanów Zjednoczonych oraz EU-15, stosując wskaźnik przewagi komparatywnej typu Balassy (RCA) dla okresu 2000–2010. Wybrane kraje znajdują się w rankingu dziesięciu największych eksporterów wyrobów włókienniczych i odzieżowych na świecie i równocześnie reprezentują kraje o czterech różnych poziomach dochodu. Wykazano, że Bangladesz, Chiny i Turcja maja silną przewagę komparatywną na tekstylnych i odzieżowych rynkach światowych, Stanów Zjednoczonych i EU-15, Niemcy natomiast nie wykazują znaczącej przewagi komparatywnej na żadnym z wymienionych rynków. Wykazano również, że przemysł odzieżowy Bangladeszu ma znacznie wyższą przewagę komparatywną na wszystkich trzech rynkach w porównaniu z pozostałymi krajami. Przemysł tekstylny Turcji również wykazuje najsilniejszą przewagę komparatywną na wszystkich trzech rynkach, podczas gdy przewaga komparatywna przemysły tekstylnego Chin wykazuje nieznaczną tendencję wzrostową.