WAS ZIMBABWE COMPETITIVE IN INTERNATIONAL TRADE …ijeronline.com/documents/volumes/Vol 2 issue...

WAS ZIMBABWE COMPETITIVE IN INTERNATIONAL TRADE 2000-2009?

Macleans Mzumara, Department of Economics, Bindura University of Science Education P/Bag 1020, BINDURA, ZIMBABWE, Phone +263 71 7531, Mobile +263 712735723, Fax

+263 71 7534, Email: [email protected]

Abstract Zimbabwe has gone through the period of prosperity when the country was considered the bread basket of Southern Africa to a net food importer. This paper attempts to examine whether Zimbabwe was still competitive or had a comparative advantage in international trade during the crisis period 2000-2008. Key words: international trade competitiveness; comparative advantage

1.1 Background

Zimbabwe gained independence on 18 April 1980. The Rhodesian government used interventionist policies that included inwards looking and import substitution strategy meant to encourage local manufacturing in both early and late 1970s (UNDP, 2008). The Zimbabwe government inherited various controls used by the Rhodesian government including import substitution strategy in the context of command economy (UNDP, 2008). However, diminishing demand of Zimbabwean exports began to be experienced, there was also a decline in investment and capital formation and a severe shortage of foreign currency. The combination of all the factors mentioned above led to a recession and government accepted International Monetary Fund (IMF) Economic Structural Adjustment Programme (ESAP) implemented in 1990-1996 (UNDP, 2008). One of the major components of ESAP was trade liberalisation. Its objectives were to remove exports incentives, abolition of imports licensing, removal of foreign currency controls, reduction of tariffs, and removal of surtax and achievement of 9% annual export growth rate (Tekere, 2001). UNDP (2008) further add an important objective of trade liberalisation was to move away from import substitution strategy to an open market driven economy. Tekere (2001) notes that there were some successes in the trade liberalisation. These included: the agricultural sector which gained from the programme; domestic deregulation and the birth of small enterprises diversification by small scale producers; disappearance of monopoly by Cotton Marketing Board; monopoly of Grain Marketing Board (GMB) was abolished; agro processing grew especially dairy products at 18.5%; meat products 21%; grain foods 40%; and beverages 86.2%. The resource driven manufacturing such as metal products, leather hides, wood and furniture responded positively; and jewellery exports grew by 130%. Despite the above achievement, the performance of the mining sector exports suffered significantly. Zimbabwe abandoned implementation of trade liberalisation after 1998 when she began to follow tariffs under Southern African Development Community (SADC) trade protocol programme (Tekere, 2001). In general, ESAP failed resulting in decline in job security in the public sector and closing down of some industries (Parson, 2007). The government failed to implement fiscal stabilisation resulting into failure of ESAP (UNDP, 2008). On 14 November 1997 ‘Black Friday’ the Zimbabwe dollar crashed when the government gave a gratuity of Z$50 000 to each ex-combatant which was not budget for in the national budget thereby creating a crisis (UNDP, 2008; Tekere, 2007). The situation was further

Macleans Mzumara, Int. J. Eco. Res., 2011 2(5), 195-216 ISSN: 2229-6158

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worsened by Zimbabwe’s participation in the war in DR Congo which further increased budget deficits (UNDP, 2008). By the end of 1990s, the Zimbabwean economy had begun deteriorating significantly. In 2000, war veterans began forcible occupation of white commercial farms and the government embraced the move which was condemned by western governments (United Kingdom, USA, European Union, Canada, Australia, etc) and imposed travel ban on political and government leaders (Timbe, 2007). Both political and economic environment worsened between the period 2000-2008. This paper attempts to find out whether Zimbabwe was still competitive and had comparative advantage in international trade during the period 2000-2009. 1.1 Literature on competiveness and comparative advantage Competiveness is a term different author’s have used without attaching specific meaning and each one of them trying to project a different image (Brumbaugh, 2006). This paper will borrow some of these varied definitions of competitiveness. The President’s Commission on Industrial Competitiveness (1985) defines the term competiveness as the degree a nation is able to create goods and services within a free and fair environment in conformity with the global markets at the same time increasing wealth of its people. The definition seems to be broader and comprehensive but does not reveal how competitiveness is achieved. The term competitiveness brings in many aspects that have a bearing on a nation’s macroeconomic status. Such aspects involve innovations and productivity. The above factors rely heavily on investment in manpower and capital such as factories. It further relies on institutional mechanism available in a particular country (Durand, Simon & Webb, 1992). Ezeala-Harrison (1999) defines competiveness as the ability of the nation’s companies to produce a product or render a service and promote them. The products conform to higher international standards but are sold at cheaper prices. There is here an element of price introduced. That is the firm must be able to offer cheaper prices but maintaining higher standards of its products and services. Ezeala-Harrison (1995) believes competitiveness focused only on trade performance meaning can be misleading because of its potential of producing an outcome that runs contrary to the one focused on productivity. According to Porter (1990) and Porter (2009) competiveness is a product of a nation’s human resource, physical capital such as factories and natural endowments. In addition it is also determined by demand conditions as well as the performance of the firms and their strategies and how well prepared and not prepared by other competing firms. Competiveness or competitive advantage is the same as absolute advantage. They both influence distribution of resources, trade pattern and volume of trade. However, comparative advantage influences the direction of trade (Neary, 2002). The paper will briefly introduce the element of comparative advantage. According to Case and Fair (2002) a nation possesses a comparative advantage in producing a particular commodity only if the said nation is greatly endowed with inputs used to produce a particular commodity such that it would have used the inputs intensively. This is in fact what Hescheker –Ohilin call comparative advantage. Mzumara (2006) elaborates that the extension of Ricardo’s principle of comparative advantage by Hescheker-Ohlin is based on international differences in costs causes by differences in endowments. A nation with abundance of a particular factor must use that factor intensively to produce a product that it should specialize in and export. Then it is advisable for such a nation to import a product that uses the endowment that is scarce in a particular nation. The source of comparative advantage originates mainly through factor endowment which composes of labour, land and natural resources of a nation. Such factor endowments must be of a given quality and stock



196

(Case & Fair, 2002). The Hescheker-Ohilin theorem and the original Ricardo’s principle of comparative advantage have been the important aspects of the trade theory but have only become a victim by Leontief Paradox. The paradox is considered to have some how demolished the fame of the principle of comparative advantage. Leontief in his research found that the United States exports labour intensive products. This evidence is contrary to the principle of comparative advantage as the United States has abundant endowment in form of capital and hence expected to export capital intensive products (Mzumara, 2006). Despite the above setback, the principle of comparative advantage remains a firm foundation of trade theory. Returning to competiveness, the word itself does not suggest competition among countries. The theory suggest that each nation involved in trade with another nation gains from being involved in that trade. The nations concerned are not in competition that the other loses and the other then wins. Instead, the benefits are mutual and they lead to specialization among nations so they are able to produce those commodities which they are more suited for (Brumbaugh, 2006) WEF and IMD (1990) have come up with factors that determine competiveness. These are: domestic economy- the existence of competition in the local market prepares firms to be productive and efficient; internationalization- when a nation is more open to international activities its performance enhances minimization of state interventions in the economic activities; availability of finance and support infrastructure; availability of sound management; promotion of science and innovation; and availability of skilled manpower and positive attitude to productivity. Both comparative advantage and competitiveness can be demonstrated through revealed comparative advantage (RCA). This will be demonstrated in the following sections. 1.3 Methodology In order to find whether Zimbabwe was competitive the study used Revealed Comparative Advantage (RCA) method. It was first used by Bolassa (1965) and by Krugell and Matthee (2009) in measuring the export capability of South African regions. The method has been found to be reliable in identifying products with export potential. The method is further justified as Wu and Chen (2004) put it that in a dynamic competitive market economy, comparative advantage as revealed in export composition, is consistent with comparative advantage based on the country’s economy factor endowment, and evolves along with economic development. It reveals products a country may have comparative advantage in. The following formula was used:

RCA= ( X zim j/ X wj) / (X zim.tot/Xw.tot) for 2005 + RCA for 2006+ RCA for 2007+RCA for 2008+ RCA for 2009/5 = Average RCA, Where:

X zim j denotes Zimbabwe’s exports of commodity j.

X zim.tot denotes Zimbabwe’s total exports.

X wj denotes the world’s export of product j.

Xw.tot denotes total exports in the world.



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The index can be employed to represent both the relative competitiveness of the same product in various countries and the relative competitiveness of various products within the same country (Wu and Chen, 2004) An RCA> 1 indicates that Zimbabwe is relatively specialised in the production of that product hence has comparative advantage and competitiveness. A higher RCA index suggests that a particular country has a greater revealed comparative advantage and competitiveness in a particular product (Wu & Chen, 2004). The paper has used COMTRADE statistics four digit level for the period 2005-2009.

1.4 Presentation of results The study used International Trade Centre (ITC) calculations based on COMTRADE statistics for the period 2005 to 2009 for both Zimbabwe’s exports and world’s exports. An RCA for each product was computed for each period from 2005 to 2009 then an RCA average for the 5 year period was computed for each product. By obtaining an average RCA of 5 year period ensured that the RCA was more reliable and was not a chance for a particular year but consistent. The results are presented in table 1 Table 1: RCA Results

SITCD

PRODUCT DESCRIPTION

2005

RCA

2006

RCA

2007

RCA

2008

RCA

2009

RCA

AVERAGE RCA FOR

5 YEARS

5201 Cotton, not carded or combed

35 14 32 726 639 289

5205 Cotton yawn (not sewing thread) 85% or more cotton, not retail

0.005 2.547 5.197 45.656 4.654 12

2401 Tobacco unmanufactured

76.975 66.238 101.192

91.485 115.218

90

0603 Cut flowers and flower bud for banquets, fresh or dried

44.652 211.035

117.842

227.424

242.025

169

2604 Nickel ores concentrates

1052.296

353.127

263.208

435.7 612.142

543

7108 Gold unwrought or in semi-manuf. Form

45.341 5.15 7.565 0.76 4.855 13

1701 Cane or beet sugar and chemically pure sucrose, in solid form

30.703 5.548 8.504 24.955 18.84 18

2523 Cement, Portland, aluminous, slag, supersulfate & similar

5.218 10.546 133.953

12.846 23.496 37



198

hydraulic

2402 Cigars, Cheroots, Cigarillos & cigarettes

9.9 2.213 14.011 11.394 9.017 9

7202 Ferro-alloys 49.572 32.714 59.805 12.461 9.463 32

7102 Diamonds, not mounted or set

2.064 0.585 0.847 1.25 1.677 1.28

2516 Granite, porphyry, basatt, sandstone & other monumental or building st

63.557 19.524 48.756 51.178 63.572 49

2701 Coal; briquettes, ovaids manufactured from coal

0.003 7.691 0.013 0.467 0.28 1.7

4907 Unused stamps, cheque forms, banknotes, bond certificate

405.364 109.754

487.028

118.161

629.897

350

2704 Coke & semi coke of coal, lignite, peat; retort carbon

2.991 554.326

21.214 10.95 22.148 122

7502 Unwrought nickel 47.542 13.311 33.952 11.016 8.343 23

9705 Collection piece of zoo, botanic, history, etc

61.103 80.938 215.295

584.612

140.653

217

8418 Refrigerator, freezer, etc

0.103 0.085 0.531 0.151 3.263 0.8

4407 Wood sawn/chipped lengthwise, sliced/peeled

0.344 0.769 0.169 4.119 3.145 1.7

2518 Dolomite 5.352 1.9 5.828 4.946 251.837

54

6203 Men’s suits, jackets, trousers,etc, shorts

1.236 0.701 0.995 9.264 1.559 2.8

4103 Raw hides & skins nes

41.835 7.667 24.321 145.791

132.813

70.5

2610 Chromium ores and concentrates

1.965 1.375 6.097 12.839 30.542 21



199

9403 Iron and non-alloy steel in ingots or other primary forms, nes

124.04 27.069 39.026 132.719

114.669

88

9403 Other furniture and parts thereof

1.816 7.772 7.811 2.151 0.849 4

7308 Structures (rods, angle, plates) of iron & steel nes

0.004 0.155 0.031 0.76 1.131 0.42

4819 Packaging containers of paperboard, cellulose wadding web

3.153 1.094 3.472 3.615 2.775 2.8

0902 Tea 5.818 6.21 7.776 5.427 9.237 6.9

8540 Thermionic, cold cathode valves & tube (e.g. TV camera tubes)

0 0 0.011 0 12.257 2.5

6309 Worn clothing and articles

9.63 39.699 64.361 3.376 16.818 26.8

2306 Oil – cakes nes 4.391 1.943 21.335 20.926 10.531 11.8

8704 Trucks, motor vehicles for the transport of goods

0.192 0.776 0.047 4.521 0.493 1.2

7403 Refined copper and copper alloys, unwrought

0.815 0.146 0.694 0.003 0.338 0.4

8516 Electric instantaneous water heater, space htg; hair dryer

0.065 0.412 1.015 0.941 1.083 0.7

1207 Oil seeds 2.311 0.33 0.836 1.11 12.8 3.5

8432 Agricultural, hortic, forest machinery for soil prep/cultivation

1.545 1.124 2.95 9.282 5.744 4.1

3923 Plastic packing goods or closures, stoppers, lids, caps, closures, plas

0.405 0.149 0.315 .964 0.764 0.52

9401 Seat (o/t dentists’ & barbers’ chairs etc) &

0.27 0.075 0.183 0.23 0.624 0.28



200

part thereof

2207 Ethyl alcohol & other spirits (undenatured then higher than 80% by

11.392 1.926 3.722 2.268 4.272 4.7

2833 Sulphates; alums; peroxosulphates (persulphates)

30.734 7.134 41.011 26.942 10.74 23.3

5209 Woven cotton fabrics, 85% or more cotton, weight over 200 g/m2

1.548 0.425 1.303 1.22 2.887 1.5

8426 Derricks; cranes; straddb carrier, & works trucks fitted with a crane

0.004 0.001 0.023 0.017 1.54 0.32

7314 Cloth, grill, netting & fencing, of iron & steel wire

0.483 1.087 1.059 1.254 5.861 1.95

6205 Men’s shirts 0.133 0.145 0.337 0.256 1.672 0.51

4409 Wood continuously shaped along any edge

1.179 2.326 4.178 3.687 4.545 3.183

8517 Electric app for line telephony, ind curr line system

0.014 0.004 0.002 0 0.062 0.02

8413 Pumps for liquids; liquid elevators

0.066 0.224 0.193 0.031 0.402 0.18

1209 Seeds, fruit and spores, for sowing

2.353 0.231 0.688 1.198 3.438 1.58

8802 Aircraft (helicopter, aeroplanes) spacecraft (satellites)

0.05 0.057 1.387 0.011 0.373 0.38

7516 Aluminium table, kitchen, household articles

0.081 0.272 0.461 0.842 5.045 1.34

8207 Interchangeable tl for hand tol for machine tools

0.266 0.039 0.065 2.94 1.096 0.88

1704 Sugar confectionery (incl white choc), not

4.252 1.291 2.603 2.352 1.84 2.47



201

containing cocoa

3201 Vegetable tanning extracts, tannis & their salts

1.568 18.203 33.457 54.971 54.528 32.55

4418 Builders joinery & carpentry of wood

0.149 0.376 0.837 2.001 1.267 0.93

2403 Pipe, chewing & snuff tobaccos

32.443 7.521 8.753 8.099 4.203 13.04

4402 Wood charcoal (including shell or nut charcoal)

1.594 5.333 11.264 25.394 23.823 13.48

1703 Molasses resulting from the extraction or refining of sugar

0 0.746 0.788 13.466 16.9 6.38

2710 Petroleum oils not crude

0.003 0 0.025 0.007 0.027 0.01

0402 Milk & cream concentrated or sweetened

1.298 0.457 0.854 0.583 0.98 0.83

4403 Wood in the rough 0.457 0.264 0.576 5.646 1.17 1.62

0303 Fish, frozen, whole 0.051 0.022 0.466 0.804 0.775 0.42

8504 Electric transformer static converter (for example rectifiers)

0.139 0.036 0.068 4.823 0.162 1.05

8501 Electric motors and generators (excluding generating sets)

0.034 0.236 0.108 0.166 0.321 9.17

0710 Frozen vegetables 1.22 88.22 94.89 22.26 2.207 41.76

7323 Iron steel table & household articles

2.275 0.947 1.866 1.743 1.534 1.67

2835 Phosphinetes, phosphonates,phosphates & polyphosphates hypophosphites

0.066 0.024 0.144 1.034 3.332 0.92

8803 Aircraft parts 0.061 5.129 3.191 0.073 0.215 1.73

8507 Electric accumulator 0.677 0.162 0.352 0.424 0.421 0.41



202

7404 Copper waste & scrap 0 0.229 0.168 0.17 0.765 0.27

8430 Moving/grading/boring machinery for earth

0.004 0.004 0.09 0 0.958 0.2

0407 Birds’ egg in shell 17.145 5.116 28.485 11.434 3.397 13.1

0805 Citrus fruit, fresh and dried

18.011 1.033 1.49 14.919 0.99 5.33

7228 Bars & rods , other alloy steel, hollow drill bars,etc

0.474 0.227 0.346 0.511 1.534 0.62

1901 Malt extract; food preparation of flour, meal, starch or mart extract

0.431 0.51 0.77 0.965 0.806 0.697

1208 Flour & meals of oil seeds

0.405 0.168 0.369 3.42 8.53 2.58

2304 Soya-bean oil-cake & other solid residues

0.002 0.002 0.013 0.11 0.406 0.11

3004 Medicament mixtures not 3002, 3005, 3006), put in dosage

0.075 0.013 0.018 0.023 0,027 0.03

4411 Fibreboard of wool or other ligneous materials

0.334 0.709 0.327 0.699 0.982 0.61

5607 Twine, cordage & cable, with rubber/plastic

6.025 1.289 3.320 4.681 4.611 3.99

4011 New pneumatic tire of rubber

0.045 0.128 0.154 0.49 0.14 0.19

8474 Machinery for sorting/screening/washg; agglomeratg/shapg mineral produc

0.96 1.536 0.547 0.96 0.49 0.9

9406 Prefabricated buildings

0.236 0.028 0.029 0.014 1.172 0.3

8703 Cars (incl. Station wagon)

0.096 0.026 0.968 0.144 0.017 0.25

0901 Coffee 1.136 0.289 0.387 0.341 0.377 0.51



203

6302 Bed, table, toilet and kitchen linens

0.487 0.093 5.97 0.32 0.476 1.47

2830 Sulphides, polysulphides

89.717 14.163 2.689 35.39 159.01 60.19

8525 Television camera, transmission app for radio-telephony

0.004 0.001 0.003 0.025 0.146 0.04

8431 Machinery part (hd 84.25 to 84.30)

0.054 0.138 0.031 0.026 0.113 0.07

8215 Spoons, forks, butter-knives and similar kitchen or tableware

0.052 0.018 0.062 0.067 3.212 0.68

4106 Goat/kid skin leather, other than leather of hd no 41.08/41.09

46.796 26.298 44.985 14.685 13.56 29.26

2821 Iron oxides & hydroxides

0.247 0.067 0.995 0.026 10.342 2.34

6811 Articles of asbestos-cement of cellulose fibre-cement

4.045 7.824 3.827 16.956 6.802 7.9

0105 Live poultry 1.109 1.861 2.584 2.883 2.793 2.2

2501 Salt 3.82 1.544 3.356 0.01 3.065 2.4

7310 Iron & steel tank, cask, drum can, boxes (cap<=3001)

0.071 0.203 0.352 0.369 1.175 0.4

8502 Electric generating sets and rotary converters

0.023 0.006 0.19 0.003 0.301 0.1

8471 Automatic data processing machines; optical reader, etc

0.012 0.023 0.041 0.051 0.022 0.03

7113 Articles of jewellery & parts thereof

0.976 0.182 0.209 0.975 0.102 0.3

9703 Original sculpture & statuary in any material

8.142 2.478 8.531 2.843 2.12 4.8

0904 Pepper, peppers and capsicum

8.337 1.846 2.61 3.27 2.753 3.8



204

9608 Ballpoint pencils; markers & writing instr ; (o/ heading no 96.09

1.113 0.246 0.919 0.073 1.1 0.9

8478 Machinery for preparing tobacco

4.914 0.493 3.579 0.103 5.308 2.9

8716 Trailers & semi-trailers; other vehicles not mechanically propelled

0.23 0.094 0.2 3.221 0.356 0.8

3808 Insecticides, fungicides herbicides package for retail sale

0.629 0.09 0.313 0.227 0.212 0.3

7216 Angles, shapes and sections of iron or non-alloy steel

8.6 0.051 1.369 0.32 0.355 2.1

3104 Mineral or chemical fertilizer potassic

0.004 0.003 0.005 0.004 0.416 0.1

4415 Packaging materials of wood

0.001 0.058 0.103 0.003 2.138 0.5

4818 Toilet paper, handkerchiefs, tissues, napkins, table cloth, diapers

0.046 0.013 0.026 0.038 0.225 0.07

4805 Uncoated paper and paperboard nes, in rolls or sheets

2.262 0.781 1.636 1.737 0.606 1.4

1517 Margarine 6.764 1.337 1.42 1.082 0.878 2.1

8705 Specl purp motor vehicles (fire fight veh, crane lorry)

2.165 0.659 1.027 0.09 0.342 0.9

2106 Food preparation, nes 0.014 0.029 0.352 0.513 0.175 0.2

5811 Yarn of man-male staple fibre, put up for retail sale

18.131 0.646 267.751

28.064 14.58 65.8

0208 Meat and edible meat offal nes

4.915 3.817 9.776 0.857 0.006 3.9

2603 Copper ores and concentrates

0 0.047 0.281 0.085 0.114 0.1



205

4412 Plywood veneered panels and similar laminated woods

0.046 0.104 0.258 0.298 0.369 0.2

3105 Mixtures of nitrogen, phosphorous or potassium fertilizer

0.747 0.464 1.172 0.07 0.288 0.5

2504 Natural graphite 83.208 15.85 25.02 17.43 12.72 30.8

2009 Fruit & vegetable juices unfermented

0.812 0.336 0.608 0.385 0.267 0.5

2520 Gypsum; anhydrite; plasters

3.66 0.79 0.78 2.635 4.108 2.4

2530 Mineral substances, nes

19.01 15.08 23.382 24.481 3.023 17

8421 Centrifuges, incl centrifugal dryers; filtering/purifying machinery

0.054 0.026 0.038 0.225 0.075 0.04

7326 Articles of Iron or steel nes

0.17 0.051 0.149 0.114 0.097 0.08

8205 Hand tools nes; anvils 0.025 0.007 0.204 0.321 0.499 0.2

4413 Densfied wood, in blocks, plates, strips or profile shapes

0.63 1.303 6.693 46.089 12.021 13.4

8547 Insulating fitting for elec mach. App/equip (o/t insulator of hd no.85.4)

0.002 0.019 0.026 0.059 0.845 0.2

4801 Newsprint, in rolls or sheets

0.031 0.38 0.9 0.926 0.356 0.5

8708 Parts & access of motor vehicles

0.009 0.003 0.013 0.325 0.013 0.07

7103 Precious & semi-precious stone not strung

1.146 0.062 0.489 1.674 0.81 0.8

6404 Foot wear, upper of textile mat

1.212 0.264 0.492 0.18 0.263 0.48

9504 Articles of funfair, table/parlour games & auto bowling alley

0.192 0.047 0.058 0.004 0.066 0.1



206

equipment

4820 Registers, acct. note, order books etc; other stationery articles of paper

0.698 0.238 0.673 0.969 0.718 0.7

2208 Spirits, liqueurs, and other spirit beverages, alcoholic preparations

0.017 0.014 0.07 0.074 0.126 0.06

6201 Mens overcoats, capes, windjackets etc o/t

0.153 0.081 0.34 5.746 0.298 1.3

5208 Woven Cotton fabrics, 85% or more cotton, weight less than 200g/m2

0.488 0.156 0.36 0.589 0.208 0.36

8437 Machines for cleaning/sort seed, grain machinery used in the milling ind

0.067 4.384 0.843 .052 1.367 1.3

6810 Articles of cement, concrete or artif. Stone

0.185 0.035 0.009 0.008 0.556 0.2

6211 Track suit ski suits and swimwear other garments.

0.018 0.592 4.508 0.761 0.607 1.3

6506 Headgear, nes 0.136 0.132 0.453 0.543 1.224 0.498

4202 Trunks, suit-cases, camera cases, handbags etc of leather, plas, tex etc

0.012 0.189 0.265 0.994 0.069 0.3

7214 Bars & rods of iron-al/s, nfw than forged, hr,hd/hot – extruded

20.423 0.05 0..143 0.059 0.16 4.2

6901 Bricks, blocks, ceramic good of siliceous fossil meals

1.143 1.501 4.976 2.925 23.382 6.8

8707 Bodies for motor vehicles

0.033 0.075 0.276 0.291 0.464 0.2

4104 Leather of 1.631 0.495 0.756 0.515 0.5 0.8



207

bovine/equine animal

6305 Sacks and bags of a kind used for the packing of goods

0.64 0.527 1.39 0.319 0.715 0.7

0803 Bananas and plainains fresh or dried

22.865 0.099 0.242 0.378 0.247 4.8

4808 Paper and paperboard, corrugated, creped, crinkled, embossed, perforet

5.083 0.811 1.345 1.69 1.785 2.1

0713 Dried vegetables, shelled

1.457 0.146 0.145 0.116 0.2 0.4

2615 Niobium, tantalum, vanadium or zirconium ores and concentrates

1.426 1.085 1.66 1.64 3.08 1.8

8414 Air, vacuum pumps; hoods incorp a fan

0.06 0.01 0.267 0.015 0.04 0.08

1904 Breakfast cereals & cereal bars

1.536 0.533 0.631 0.801 0.413 0.8

4803 Paper household/sanitary, rolls of a width >36 cm

1.552 0.843 2.326 1.524 0.739 1.4

1404 Vegetable products, nes

27.25 44.132 54.222 44.244 4.253 34.8

0708 Legumininous vegetables, shelled or unshelled fresh or chilled

3.209 107.715

6.562 257.28 1.783 75.3

8429 Self-propelld bulldozer, angle dozer, grader, excavator, etc

0.335 0.24 0.14 0.252 0.075 0.2

0802 Nuts nes 0.543 0.175 0.212 0.273 0.214 0.3

2103 Sauces mixed condiments & mixed seasonings

0.46 0.142 0.362 0.221 0.214 0.3

8462 Machine tool for wrkg 0.012 0 0 0 0.224 0.05



208

met by forging/hammerg,etc

1005 Maize (corn) 0.051 0.054 0 0.008 0.087 0.04

8212 Razors and razor blades

0.005 0 0 1.161 0.506 0.3

2302 Bran sharps and other residues

1.454 0.139 0.835 0.085 1.516 0.8

3003 Medicament mixtures (not 3002, 3005, 3006, not in dosage

0.006 0.015 0.004 0.005 0.19 0.04

8544 Insulated wire/cable 0.329 0.006 0.097 0.047 0.024 0.1

6306 Tents & camping goods, tar paulins, sails for boats, etc

0.246 0.022 1.039 0.239 0.544 0.4

3917 Tubes, pipes & hoses & fitting therefore of plastics

0.161 0.043 0.815 0.073 0.096 0.2

7007 Safety glass, consisting of toughened or laminated glass

0.421 0.222 0.332 0.324 0.201 0.3

8423 Weighing machinery (excl balances of a sensitivity of 5 cg or better

0.047 0.012 0.026 0.052 0.498 0.1

0810 Fruits nes, fresh 0.352 18.264 2.228 11.406 0.22 6.5

6403 Footwear, upper of leather

0.606 0.174 0.186 0.174 0.033 0.2

8702 Public – transport type passenger motor vehicle

0.01 0.07 4.7 0.025 0.115 0.98

5608 Knotted nettg of twine, cordage/rope made up fishg nets

1.833 0.367 0.542 0.662 1.253 0.9

8406 Steam turbines and other vapour turbines

0 0.001 0.97 0 0.156 0.2

2006 Sugar preserved fruits and nuts

0 0.04 0.105 0.28 2.896 0.7



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2102 Yeast 2.8 0.735 0.664 0.934 0.857 1.24

2508 Clay nes 0.551 0.065 0.158 0.371 0.938 0.4

1905 Bread, biscuits, wafers, cokes and pastries

0.127 0.228 0.425 0.352 0.057 0.2

5204 Cotton sewing thread 0 0 0.412 0 8.357 1.84

8701 Tractors (other than tractors of heading no. 87.09)

0.132 0.022 2.47 0 0.042 0.5

8511 Electrical ignition/starting equip (spark plugs/starter motors)

0.013 0.013 0.013 0.012 0.097 0.03

2008 Preserved fruits nes 0.145 0.051 0.2 0.32 0.128 0.2

8528 Television receivers (incl video monitors & video projectors)

0.002 0 0.175 0.003 0.012 0.04

3402 Organic surface-active active agents washing & clean preparation, nes

0.303 0.041 0.086 0.049 0.052 0.1

6301 Blankets and travelling rugs

0.43 0.382 1.402 1.188 0.364 0.8

2620 Ash & residues containing metals of metallic compound

1.871 1.2 0 0.17 0.562 0.7

8449 Hat making machinery for the mfr/fin of felt/non wovens

0 0 0 0 2.486 0.5

2007 Jams, fruit, jellies & marmalades

1.392 0.819 0.828 0.924 0.517 0.9

4707 Waste and scrap of paper or paper board

0.024 0 0.026 0.025 0.151 0.05



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3301 Essential oils; resinoids; terpenic by products etc

2.511 0.242 0.504 0.032 0.432 0.7

0910 Ginger, saffron, turmeric, thyme, bay leaves & curry

1.012 0.281 0.96 0.8 0.746 0.8

6109 T-Shirts, singlets and other vests knitted or crocheted

0.061 0.01 0.022 0.027 0.034 0.03

3303 Perfumes and toilet waters

0.005 0 0.007 0.113 0.084 0.04

8481 Tap, cak, valve for pipe tank for the like, ind pressure

0.005 0.049 0.011 0.014 0.017 0.02

4410 Particle board and similar board of wood or other ligneous materials

0.047 0.242 0.546 0.866 0.016 0.3

9027 Instruments for physical/chemical analysis; inst for viscosity, heat, etc

0.004 0.002 0.023 0 0.032 0.3

8527 Reception app for radio-telephony/radio –broadcasting

0 0.006 0.357 0.002 0.068 0.09

3401 Soap; organic surface-active preparation for soap use

3.552 0.127 0.282 0.041 0.12 0.8

6204 Women’s suits, jacket, dresses, skirts etc shorts

0.045 0.022 0.047 0.022 0.019 0.03

0709 Vegetables nes, fresh or chilled

0.685 50.1 16.089 0.164 0.096 13.4

1006 Rice 0 0 0.003 0 0.047 0.01

1806 Chocolate and other food preparations containing cocoa

0.075 0.019 0.021 0.037 0.048 0.04

7307 Tube or pipe fitting of iron or steel

0.015 0.017 0.01 0.04 0.062 0.03



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7315 Chain and parts thereof of iron and steel

0.115 0.062 0.464 0.648 0253 0.3

8607 Parts of railway or tramway locomotives or rolling stock

0.013 0.037 0.176 0.049 0.089 0.1

8713 Invalid carriages (wheel chairs) w/n motorised

0.034 0 0 15.35 0.781 3.2

8450 Household or laundry-type washing machines

0 0 0.03 0 0.067 0.02

6406 Part of foot wear, removable in-soles, heels cushion etc; gaiter etc

0.062 0.08 0.127 0.097 0.134 0.1

7304 Tubes, pipes & hollow profiles, seamless or iron or steel

0.013 0 0.001 0.005 0.029 0.01

5603 Non wovens, W/A impregnated, coated, covered or laminated

0.61 0.075 0.132 0.084 0.08 0.2

4302 Tanned or dressed furskins & pieces, unassembled or assembled

0.493 1.965 5.08 0 0.584 1.6

8483 Transmission shafts & cranks, bearing housing, gearing, etc

0.071 0.015 0.112 0.032 0.022 0.05

3920 Other plates sheets, film, foil, tape, of plastic etc

0.104 0.016 0.015 0.044 0.019 0.04

7306 Tubes, pipes and hollow profiles of iron or steel, nes

0.427 0.042 0.033 0.009 0.005 0.1

6405 Foot wear, nes 0.561 0.227 0.346 0.332 0.176 0.3

1602 Prepared or preserved meat offal or blood, nes

0.189 0.394 1.071 0.99 0.063 0.5



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2201 Wine of fresh grapes 0.037 0.004 0.005 0.021 0 0.01

4009 Tubes, pipes & hoses of vulcanised

0 0.079 0.183 0.084 0.131 0.1

6809 Articles of plaster 0.204 0.062 2.146 3.397 0.478 1.3

7213 Bars & rods, hr, in irreg wound coils, of iron or non – alloy

0.732 0.297 0.486 0.014 0.088 0.3

7211 Flat-rolled prod of iron/non-al/s wd less than 600 mm not clad

0 0.028 0.074 0.382 0.188 0.1

2505 Natural sands of all kinds, except metal bearing

0 0 0.16 0.01 0.37 0.1

0401 Milk and cream, not concentrated nor sweetened

1.377 0.814 1.275 0.75 0.114 0.9

2510 Calcium and aluminium, calcium phosphales, natural & phosphatic

0.312 0.088 0.004 1.832 0.319 0.5

8903 Yacht & other vessels for pleasure or sports

0.13 0.01 0.48 0.003 0.057 0.1

8473 Parts & acces of computers & office machines

o.01 0.055 0.019 0.004 0.005 0.02

2005 Prepared or preserved vegetables nes (excl. frozen)

0.493 0.614 0.321 0.557 0.082 0.4

4901 Printed books brochures, leaflets & similar printed matter

0.042 0.032 0.138 0.073 0.04 0.1

8424 Mechanical appl. For proj/dispersing/spray; sand blestg mach, etc

2.394 0.002 0.002 1.333 0.049 0.8

3921 Plates, sheets, film, foil & strip of plastics, nes

0.043 0.037 0.08 0.025 0.036 0.04

5202 Cotton waste (including yarn waste

2.44 0.437 2.691 3.057 1.778 2.1



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& garneted stock)

7010 Carboy, bottle & other container of glass

3.015 0.049 0.08 0.721 0.084 0.8

7217 Wire of iron or non-alloy steel

1.835 0.219 0.464 0.227 0.114 0.6

3506 Prepared glues adhesives nes; glue packages

0.616 0.96 0.119 0.496 0.072 0.3

2836 Carbonate, peroxocarbonate, commercial ammonia carbonate

0.099 0.024 0.095 0.018 0.017 0.1

7902 Zinc waste and scrap 0.49 0 0 0 1.267 0.4

8482 Ball or roller bearings 0.01 0.01 0.14 0.001 0.023 0.04

8448 Auxiliary machinery (dobbie/jackuard parts) etc

0.001 0.004 0.341 0.129 0.165 0.1

3307 Personal toilet preparations shaving preparation, deodorant etc

0.023 0.016 0.071 0.02 0.055 0.04

7610 Aluminium structure nes & part of structures

0.008 0.002 0.219 0.229 0.06 0.1

4804 Uncoated kraft paper & paper board in rolls/sheets not of hd 48.02/48.03

0.007 0.013 0 0 0.052 0.1

8901 Cruise ship, cargo ship, barges

0.006 0 0.013 0.003 0.004 0.01

8302 Base metal mountings, fttgs & sim art suitable for furn doors etc

0.01 0.01 0.017 0 0.025 0.01

3924 Tableware, kitchenware toiletry articles, of plastic

0.016 0.004 0.065 0.019 0.05 0.03



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1.2 Intepretation of the results Using the average RCA for 2005 -2009, of 241 products tested, 91 products had an RCA equal or greater than 1. That means Zimbabwe has comparative advantage in 38% of the 241 products examined. Zimbabwe had the highest RCA index in nickel ores concentrates of 1052 in 2005 and an average RCA index for 2005-2009 was 543. This was followed by unused stamps, cheque forms, bank notes and bond certificates with an RCA index of 630 in 2009 and an average RCA index for 2005-2009 of 350. This was further followed by coke and semi-coke of coal, lignite peat and retort carbon with an RCA index of 554 in 2006 and an average RCA index of 122. In terms of average RCA index for 2005-2009 nickel ores concentrates had the highest index of 543. This was followed by unused stamps, cheque forms, bank notes and bond certificates with RCA index of 350 followed by cotton not carded or combed with RCA of 289. Others which had very high RCA index included: collection piece of zoo, botanic, history 217; semi coke of coal, lignite, peat and retort carbon 122; cut flowers and flower bud for banquets, fresh or dried 169; tobacco unmanufactured 90; iron and non –alloy steel in ingots or other primary form 88; leguminous vegetables, shelled or unshelled, fresh or chilled 75; raw hides skins 70.5; yarn of man-made staple put for retail sale 65.8; sulphides, polysulphidedes 60; dolomite 54; granite, porphyry, basalt sand stone and other monumental or building 49; frozen vegetables 41.76; cement, Portland, aluminous slag, supersulfate and similar hydraulic c 37;; vegetable products 34.8; vegetable tanning extracts, tannins and their salt 32.6; ferro-alloys 32; sulphates, natural graphite 30.8; goat/kid skin leather 29; worn clothing and articles 26; alums peroxosulphates 23; unwrought nickel 23; mineral substance 17; gold unwrought or in semi-manufactured form 13; vegetable, nes, fresh or chilled 13; chewing and snuff tobaccos 13; birds egg in shell 13; densfied wood, in blocks plate, strips or profile shapes 13; cotton yawn (not sewing thread) 85% or more cotton, not for retail 12; and oil cake 11.8. However of all the products Zimbabwe had comparative advantage, products it had least comparative advantage included: yeast 1.2; trucks, motor vehicles for the transport of goods 1.2; diamonds 1.3; aluminium table, kitchen household articles 1.3; articles of plaster bars and rods 1.3; paper household/sanitary rolls of a width >36 cm 1.4; woven cotton fabric, 85% or more cotton weight over 200/m2 1.5; wood in rough 1.6; tanned or dressed furskins and pieces unassembled or assembled 1.6; and iron steel tables and household article 1.7. Zimbabwe had competiveness and comparative advantage as revealed by the RCA index mostly in primary commodities. Their exports values were also very high clearly indicating that Zimbabwe’s exports are dominated by primary commodities whose prices are not determined by Zimbabwe but world commodity prices hence are subject to fluctuations. Although the RCA index for diamonds was very low only 1.3 mining of the product had just began and there was a problem of certification with the Kimberley Certification Process (KPC). Zimbabwe has a deposit of 16.5 million of diamonds and will take 300 years to exhaust them through mining (Mzumara, Mupotola, Masiiwa, Muranda & Mutengwa, 2007). Zimbabwe is estimated to capture 25% of diamond world market once operations are in full swing and the country resolves its problem with KPC. It will therefore have a very high RCA in future and will contribute significantly to export earnings of Zimbabwe.



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1.3 Conclusion Zimbabwe indeed has comparative advantage in a number of products hence is competitive. Despite the economic and political problems experienced by Zimbabwe between the period 2000-2008, the country has still comparative advantage and competiveness. However, Zimbabwe’s comparative advantage and competitiveness is mostly in primary commodities. Zimbabwe needs to diversify and add value to her products so the export earnings are boosted and the prices of her products do not fluctuate as the world commodity prices dictate. Zimbabwe has a potential to increase her exports if she concentrates and channels the meagre resources she has to producing products she has very high index of RCA. Reference BALASSA, B. 1965 Trade liberalization and revealed comparative advantage, New Haven:

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