Analysis of Agri-Food Trade Structures
To Promote Agri-Food Trade Networks
In the Islamic Countries
52
Far more reliable than the trade balance as an indicator of the relative productivity of different
parts of a country’s agricultural sector is TRCA. For computational reasons—the large number
of parameters involved—it is not feasible to report estimates of TRCA at the product level. The
approach taken is therefore to use the estimates referred to in Section 2, which are at the
division level, and to provide averages by OIC regional group. Within each division, it is possible
to draw tentative conclusions about the pattern of comparative advantage in relation to specific
products.
Table 11 presents results. For the African Group, comparative advantage is strongest in live
animals and cereals, as well as crude materials and animal and vegetable fats and oils. For the
Arab Group, comparative advantage is weaker than for the other groups, but cereals stand out,
as do other edible products. Finally, for the Asian Group, cereals show a strong comparative
advantage, as do other edible products, crude materials, and animal and vegetable fats and oils.
Comparative advantage estimates are based on a theory-driven model of bilateral trade, and so
are much more informative than trade balances as an indicator of possible future export growth.
Table 11: TRCA by Division and OIC Regional Group, 2016
African Arab Group Asian Group
Live animals 2.10 1.11 1.49
Meat 1.37 1.25 1.54
Dairy products 1.85 1.43 1.62
Fish and crustaceans 1.49 1.30 1.59
Cereals 2.11 1.83 2.95
Vegetables and fruit 1.76 1.40 1.63
Sugar products 1.77 1.45 1.65
Coffee 1.71 1.20 1.47
Animal feed 1.58 1.21 1.52
Other edible products 1.71 1.70 1.94
Beverages and tobacco 1.40 1.02 1.30
Crude materials 2.03 1.22 1.86
Oil seeds and oleaginous fruits 1.35 0.49 0.83
Animal and vegetable fats and oils 2.09 1.55 2.03
Source: Authors’ calculations.