Free Essay

Global Competitiveness of Jaf Production

In: Business and Management

Submitted By apoorvamdi
Words 5274
Pages 22
DEGREE OF GLOBAL COMPETITIVENESS: A CASE ON JUTE, KENAF &
ALLIED FIBRES INDUSTRY
Niraj Kumar Mahapatra
15PGPM11
Management Development Institute,
Murshidabad, West Bengal- 742235
Submitted to:
Dr. Paroma Mitra Mukherjee,
Faculty, Macroeconomics,
Management Development Institute,
Murshidabad, West Bengal- 742235
Abstract
Global competition is the services or products provided by competing companies that serve international customers. Competition on a local scale where people are competing against one another for one common goal - the best in their core competency. Global competition has allowed companies to buy and sell their services internationally, which opens the door to increased profits and flattens the playing field in business. Degree of competitiveness helps to examine the present status and future prospects of an industry.
This paper is an attempt to measure the extent of global competitiveness in world Jute,
Kenaf and Allied Fibres (JAF) industry. Roy (2006) (1-√∑

2)

the formula for degree of

competition is applied where Mi is the market share of each individual nation in global
JAF production, i ranging from 1 to k. For each year we can calculate one such measure, generating there by a time series data. Based on time series analysis one can indicate the
1

Degree of Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 2

past trend and future direction. The position of India has also been indicted along with top ten nations.
Key words: Global competitiveness, world JAF production, market share, trend analysis, degree of competitiveness
INTRODUCTION
Jute ranks next to cotton as a natural fibre. Jute is a bast fibre crop along with a family of few other natural fibres together generally called as Jute & Allied Fibre Crops
(JAF). They mainly occur in the equatorial, the tropical and the sub-tropical zones. The main species of jute and kenaf, which are the major components of JAF, under cultivation include tossa jute (Corchorus olitorius), white jute (C. capsularis), kenaf
(Hibiscus cannabinus) and roselle/ mesta (H. sabdariffa). The preference for cultivation of one species or the other varies from country to country. Jute is preferred by Bangladesh, India and Nepal; and kenaf is mainly grown in China and Indonesia, while roselle/ mesta is preferred in Thailand. The cultural and other aspects of JAF crops are more or less the same while the fibre characteristics differ. The fibres of jute are relatively finer than those of kenaf and roselle; together these are called ‘raw jute’ because of vast similarity in majority of the characteristics and their use. Of the two jute contributes the major share of production.
Jute and Allied Fibres (JAF) are produced in many countries. India,
Bangladesh, China, Thailand, Myanmar & Nepal are the major producing countries.
Together they produce about 95% of the global production of JAF. India and
Bangladesh produce mostly jute, China produces mostly kenaf while Thailand produces kenaf and roselle. In Nepal, Jute is grown in about 11000 ha in Tarai belt of
Eastern part of Nepal. In Thailand JAF are cultivated in about 20,000 ha. In India Jute and Kenaf are grown in about 1,000,000 hectares. Most of the production comes from

Degree of Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 3

the

States

of

West

Bengal,

Bihar,

Assam,

Orissa,

Andhra

Pradesh

&

Tripura. Bangladesh grows mainly jute, only about 10% kenaf and roselle in 500,000 hectares. China grows mainly kenaf and only about 10% jute in about 56,000 hectares.
In Indonesia JAF are grown in 10,000-20,000 hectares.
OBJECTIVE OF STUDY
The global picture of JAF industry can help us to know the position of Indian JAF industry with respect to its global competitors. The objective of this paper is to draw out the world production of Jute, Kenaf and Applied Fibres (JAF) and calculate the degree of global competitiveness.
LITERATURE REVIEW
The estimates presented by the Common Fund for Commodities (CFC) in 2006 regarding possible rise of demand for jute goods within ten years time by an annual amount of about
2829000 ton, the production of 2009-10 has already passed that estimate. The jute, kenaf and allied fibres sector touches the lives of more than 12 million farmers, about 1 million industrial workers, 0.6 million jute artisans in more 18 countries from Asia and Africa.
It is reported that in the 120 days of jute-growing period one hectare of jute plants can absorb about 15 MT of CO2 from atmosphere and liberate 11 MT of O2. And kenaf plant absorbs CO2 from the atmosphere more than any other crop. About 1.5 tons of CO 2 is needed for a production of 1 ton of dry matter of kenaf. It means that every hectare of kenaf consumes 30-40 tons of CO2 for each growing cycle. During a single growing cycle, each hectare of kenaf consume the amount of CO2 that exhaust from 20 cars in whole year.
Jute-made carbon materials are achievements of jute resources after comprehensive exploration and utilization. Usually, activated carbon is made of charcoal and coal. Using jute as a raw material for activated carbon will not only help to improve the added value of the jute industry chain but also save valuable timber and coal resources. It is estimated that the market

Degree of Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 4

size of bio-composite will increase from the level of USD2.1 billion in 2010 to USD3.8 billion in 2016. According to the Redbud, China, currently the global annual vehicle production is between 6,000 and 7,000 million. On the suppositions that average usage is 8 m 2 per vehicle, its interior materials required is 0.8 kg, the demand of jute will be up to around 10 million tons, assuming half of vehicles linen uses jute-based composite as its interior linen material. Mercedes
Benz, Daimler Chrysler, Ford Motors, Toyota, Hyundai and Suzuki are using about 10 to 20 kg of jute and blending it with plastic to make interior body parts. According to International Cocoa
Organization (ICCO), the present requirement of food grade jute bags is about 32 million while at present both Bangladesh and India are supplying only 12 million bags. Similarly over 100 million (60 kg) coffee beans are produced in about 70 countries which should require as many bags. In total, the global annual demand for all kinds of industry-use textiles is one (1) billion square meters. Assuming that the demand accounts for one billion square meters and the average square meter values 0.4 kg, it will need 40 million tons of jute annually. For information, the annual consumption of jute geo-cloth in United States is more than 5 million square meters to prevent soil erosion. Similarly, the consumption in Europe is up to 1 million square meters. It has been estimated that annual world demand for shopping bags is approximately 500 billion pieces whereas the supply of jute shopping bags is almost negligible in comparison.
RESEARCH METHODOLOGY
Secondary Research Approach is used to assess the world production of JAF. Evaluating this data is the pivotal point to achieve required results. Cross-Checks from different sources is the only way to validate this data acquired about any particular sector. Fact Finding Research design will help this dissertation to identify the pattern of growth potential and determine a viable solution. Trend Analysis is the another aspect of fact-finding that will provide observation and analysis of trends in industry volume and brand share over time, i.e. market tracking.

Degree of Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 5

Environmental scanning entails information gathering and fact-finding designed to detect indications of environment changes in their initial stages of development. The internet can be used for environmental scanning; however, there are other means, such as periodic review of contemporary publications and reports are used to find a conclusion of the data.
Period of Study
It is a statistical study where we use data from 1991 to 2011, where the world production index and the top ten countries production index is used.
Scope of Study
This study will help students, researchers, economists and other company planner to carry out their research work. It will also help them to know about global competitiveness and to calculate global competitiveness in their respective field.
Technique used for Analysis
The analysis deals with descriptive analysis and statistical analysis. The statistical analysis is to find out the trend in degree of competition among the global competing countries in the production of JAF. The corresponding hypothesis follows the null hypothesis Ho that there is no increase in the global competition in the production of against the alternative hypothesis
Ha that there is increase or decrease in the same. To find out the global competitiveness , we have calculate market share of each country every year . Then Roy (2006), the formula for degree of competition (1-√∑

2)

applied, where Mi is the market share of each country in

global JAF production. We have taken the data from year 1991 to 2011 of top ten countries.
Next calculated squares of these individual market shares for a particular year and then added those squares to get ∑Mi2 for that year. The entire process can be repeated for obtaining ∑Mi2 for all the years. Next, we have calculated the value of (1-√∑

2)

to obtain the degree of

competition for all the years. At last trend line is drawn by taking the competitiveness index of every year.

Degree of Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 6

DESCRIPTIVE ANALYSIS
Table 1 : World Production Data of JAF IN 1000MT

Total Jute, Kenaf
& Allied Fibres:

1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000
3367.7

Developing Countries

3116.6

3069.6

3109.7

2714.5

3502.6

3875.5

2765.01

2436.92

3317.2

World

3059.2

3015

3058.6

2669.5

3445.2

3819.8

2712.61

2390.52

3362.6

Far East

Bangladesh

945.1

China

513

India

3109.8

885.4
619

3062.2

3102.3

782.3

2707.1

1027.4

672

652.7

354.9

371.2

3495.2

3868.1

1062.2

364.9

1242.7

429.5

Myanmar

1332

1374.1

1476

1458

1836

1964.2

6.5

19.2

9

4.3

3.4

3.8

7.2

10

14.4

38.8

157.2

140.3

19.1

Thailand
Vietnam

25.3

Other

Latin America and Caribbean
Africa

2001/2002

1

26.5

130.8

114.9

109.3

106.4

47.21

29.72

33.2

30.9

24.6

31

28.8

27.1

21.4

5.2

4.7

4.8

5.1

5.3

4.2

3.7

25.7

23.4

35

5.3

6.8

11.7

14.9

12.8

8.8

9.5

8.1

7.4

14

8.2

7.4

2007/08

3084.93

2852.33

2405.95

2724.13

3021.1

3247.8

2654.06

3101.11

3038.23

2804.92

2356.14

2660.87

2957.21

3175.9

86.92

82.82

86.8

0.9

0.8

814.7

126

924.7
136

793.3

99.78

0.5

0.5

1890

1980

7

10.2

6.8

27.8

15.18
29.69

0.2

50.8

16.4

963

130

1620

0.2

2845.33

41.9

17

2398.95

810

1620

1350

7

7

42

17.04

1.84

17.66

1.9

20.7

23.7

24.01

25.91

3.6

3.6

3.6

3.7

3.7

Source : IJSG 2012

7

7

86.8

1782

4.7

84.3

1476

4.1

2.9

2.27

7

931

2.2

2.36

12.7

1236.8

3.6

35.66

12.4

2807.2

4.6

16.89

41.33

12.5

3.1

2528.4

3.6

46.37

12.5

0.6

7

2863.4

19.1

56

20.5

1800

2588

43.6

20.9

7

1530

990

2009/10

2581.3

15

14.2

13.2
7

17.1

10.6

2.41

NA
NA
NA
NA

2.36

NA
NA
NA
NA

16.8
25.7

1.8

50.4

2010/11

2011/12

3369

3342.2

3316.2

3258.2

2856.7

3362.3

1070.1

1404.5

75.2

1620

3.8

4.3

75.2

1800

4

3335.5

1332.9
78

1845

4

9.6

3.8

1.7

1.7

17

17.7

7.8

12.1

2

1.8

5

3.2

38

35.6

30.9

33.4

3.6

3.6

3.5

1.8

11.2

11.2

6.7

6.7

3.6

7

7.3

2008/09

3241.1

14.3

13.8

7.4

36.89

14.6

12.7

965

3014.1

9.4

14.6

14.2

33.63

11.3
2.41

2717.13

15.7

15.5

22.3

13.9

7.4

7.4

15.5

15

3144.91

3077.93

7.5

33.5

2002/2003 2003/2004 2004/2005 2005/2006 2006/2007

3137.91

0.3

1.1

33.1

2698.26
2691.26

2.3

39.5

139

10.3

0.9

43

34.6

10.1
6.3

Developed Countries

2000/2001

29

1.9

27.3

5.1

Near East

1404

1491.7

22.6

Nepal

164

248

13.5

Indonesia

731.5

851.9

1620

Cambodia

2429.92

2757.71

2

10.3
6.7

14.4

11.8
6.7

15

1.6

13.4

3.5

6.7

Degree of Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 7

Then we calculate the market share of the data given and highlight the country with highest market share.
Table 2 : Market Share Data of JFA (Mi)
Total Jute, Kenaf
& Allied Fibres:

1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999

World

1

Developing Countries

0.998

Far East

0.985

1

1

0.998

1

0.998

0.982

1

0.998

0.982

0.984

1

1.00

1.00

0.984

0.997

0.99

0.98

0.01
0.00
0.00

0.998

0.983

1.00

0.281
0.152
0.481
0.0000
0.004
0.007
0.006
0.047
0.008
0.000

China

India

Cambodia

Indonesia
Myanmar
Nepal

Thailand
Vietnam
Other

Latin America and Caribbean
Africa

Near East

Developed Countries

0.284
0.199
0.427
0.0000
0.002
0.012
0.003
0.045
0.008
0.000

0.255
0.219
0.448
0.0000
0.006
0.009
0.005
0.045
0.008
0.000

0.330
0.114
0.475
0.0006
0.003
0.011
0.004
0.042
0.004
0.000

0.240
0.137
0.537
0.0004
0.002
0.016
0.005
0.042
0.003
0.000

0.303
0.104
0.524
0.0003
0.001
0.011
0.004
0.031
0.004
0.000

0.32
0.11
0.51
0.00
0.00
0.01
0.00
0.03
0.01
0.00

0.009
0.003
0.002

Bangladesh

0.011
0.003
0.002

0.011
0.003
0.002

0.010
0.003
0.002

0.009
0.003
0.002

0.009
0.004
0.001

0.01
0.00
0.00

0.0015

2000/2001 2001/2002 2002/2003 2003/2004

0.0022

0.0024

2004/2005

0.0024

2005/2006

0.0027

1999/2000

0.0021

0.0019

1.00

0.31
0.09
0.54
0.00
0.00
0.01
0.01
0.02
0.01
0.00

0.0026

2009/10

2010/11

2011/12
1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

0.98

0.99

0.98

0.98

0.98

0.98

0.98

0.98

0.98

0.98

0.98

0.30
0.05
0.60
0.00
0.00
0.01
0.01
0.01
0.00
0.00
0.00
0.01
0.00
0.00

0.003

0.29
0.04
0.60
0.00
0.00
0.02
0.01
0.02
0.00
0.00
0.00
0.01
0.00
0.00

0.002

0.26
0.04
0.64
0.00
0.00
0.01
0.01
0.02
0.01
0.00
0.00
0.01
0.00
0.00

0.002

1.00

0.34
0.03
0.57
0.00
0.00
0.01
0.01
0.01
0.00
0.00
0.00
0.01
0.00
0.00

0.002

1.00

0.34
0.04
0.56
0.00
0.00
0.01
0.01
0.01
0.01
0.00
0.00
0.01
0.01
0.00

0.003

1.00

0.35
0.03
0.56
0.00
0.00
0.01
0.01
0.00
0.01
0.00
0.00
N/A
N/A
N/A
N/A

0.003

2008/09

1.00
1.00

0.98

0.30
0.07
0.58
0.00
0.00
0.01
0.01
0.01
0.00
0.00
0.00
0.01
0.01
0.00

2007/08

1.00
1.00

1.00

2006/2007

1.00
1.00

1.00

1.00

0.33
0.03
0.60
0.00
0.00
0.01
0.01
0.00
0.00
0.00
0.00
N/A
N/A
N/A
N/A

1.00

0.38
0.03
0.55
0.00
0.00
0.01
0.01
0.00
0.01
0.00
0.00
0.02
0.00
0.00

0.002

1.00

0.36
0.03
0.57
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.01
0.00
0.00

0.003

1.00

0.37
0.03
0.57
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.01
0.00
0.00

0.002

1.00

0.42
0.02
0.53
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00

0.002

1.00
0.97

0.40
0.02
0.55
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00

0.002

Degree of Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 8

Table 3: Squares of Market Shares and Mi Calculation

Total Jute, Kenaf
& Allied Fibres:

1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000

World

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

Far East

0.9702

0.9635

0.9647

0.9674

0.9671

0.9675

0.9715

0.9625

0.9623

Developing Countries
Bangladesh
China

India

Cambodia

Indonesia
Myanmar
Nepal

Thailand
Vietnam
Other

Latin America and Caribbean
Africa

Near East

Developed Countries

0.9970

0.0788
0.0232
0.2314
0.0000
0.0000
0.0000
0.0000
0.0022
0.0001
0.0000
0.0000
0.0001
0.0000

0.9956

0.0807
0.0394
0.1827
0.0000
0.0000
0.0002
0.0000
0.0020
0.0001
0.0000
0.0000
0.0001
0.0000

0.9952

0.0650
0.0479
0.2004
0.0000
0.0000
0.0001
0.0000
0.0021
0.0001
0.0000
0.0000
0.0001
0.0000

0.9952

0.1092
0.0130
0.2253
0.0000
0.0000
0.0001
0.0000
0.0018
0.0000
0.0000
0.0000
0.0001
0.0000

0.9946

0.9958

0.9962

0.9947

0.0578
0.0187
0.2885
0.0000
0.0000
0.0003
0.0000
0.0018
0.0000
0.0000
0.0000
0.0001
0.0000

0.0920
0.0109
0.2748
0.0000
0.0000
0.0001
0.0000
0.0010
0.0000
0.0000
0.0000
0.0001
0.0000

0.1028
0.0123
0.2569
0.0000
0.0000
0.0001
0.0000
0.0008
0.0000
0.0000
0.0000
0.0001
0.0000

0.0000

0.0000

0.0901
0.0045

0.3319

0.0000
0.0000
0.0001
0.0000
0.0001
0.0000
0.0000
0.0001
0.0000
0.0000
0.0000

0.0000

0.0000

0.0000

0.0000

0.3052

0.3156

0.3495

0.3672

0.3788

0.3729

0.3946

0.4270

0.5795

1-√∑mi2

0.0000

0.3358

∑mi2
√∑mi2

0.5525

0.5618

0.5912

0.6060

0.6155

0.6107

0.6282

0.6535

0.4205

0.4475

0.4382

0.4088

0.3940

0.0000

0.0949
0.0080
0.2911
0.0000
0.0000
0.0001
0.0000
0.0003
0.0000
0.0000
0.0000
0.0001
0.0000

0.9943

0.3845

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/08

0.3893

0.3718

0.3465

2008/09 2009/10 2010/11 2011/12

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

1.0000

0.9675

0.9723

0.9700

0.9670

0.9590

0.9541

0.9582

0.9562

0.9545

0.9611

0.9689

0.9504

0.9948
0.0912
0.0022

0.9956
0.0865
0.0019

0.9955
0.0661
0.0018

0.9951
0.1140
0.0012

0.3605

0.3612

0.4119

0.3226

0.0000

0.0000

0.0000

0.0000

0.0000
0.0001
0.0000
0.0001
0.0000
0.0000
0.0001
0.0000
0.0000
0.0000

0.0000
0.0003
0.0000
0.0003
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000

0.0000
0.0002
0.0000
0.0002
0.0000
0.0000
0.0001
0.0000
0.0000
0.0000

0.9942
0.1133
0.0013

0.3148

0.9949
0.1255
0.0009

0.3154

0.9954
0.1074
0.0008

0.3550

0.9959
0.1450
0.0007

0.0000

0.0000

0.0000

0.0000

0.0000

0.0002

0.0002

0.0002

0.0002

0.0000

0.0000
0.0002
0.0000
0.0000
0.0001
0.0000
0.0000
0.0000

0.0000
0.0002
0.0000
0.0000
0.0001
0.0000
0.0000
0.0000

0.0000
0.0000
0.0000
0.0000

0.0000
0.0000
0.0000
0.0000
0.0000

0.0000
0.0000
0.0000
0.0000

0.0000
0.0000
0.0000
0.0000

0.0011

0.3253

0.0000

0.0000

0.1294

0.3010

0.0000

0.0000

0.9948

0.0000
0.0000
0.0001
0.0000

0.0002
0.0000
0.0000
0.0000

0.9953
0.1397
0.0007

0.0000

0.0000

0.0000

0.0000

0.0000
0.0000

0.0002
0.0000
0.0000
0.0000

0.0005

0.2855

0.0000

0.0000

0.1738

0.3201

0.0000

0.0000

0.9960

0.0000
0.0000
0.0000
0.0000

0.0002
0.0000
0.0000
0.0000

0.9960
0.1590
0.0005

0.3047

0.0000

0.0000

0.0000

0.0000

0.0000
0.0000
0.0000
0.0000

0.0001
0.0000
0.0000
0.0000

0.0000
0.0000
0.0000
0.0000
0.0000

0.0001
0.0000
0.0000
0.0000

0.4542

0.4502

0.4804

0.4384

0.4301

0.4421

0.4635

0.4472

0.4560

0.4607

0.4599

0.4645

0.6739

0.6710

0.6931

0.6621

0.6559

0.6649

0.6808

0.6687

0.6753

0.6787

0.6781

0.6815

0.3261

0.3290

0.3069

0.3379

0.3441

0.3351

0.3192

0.3313

0.3247

0.3213

0.3219

0.3185

Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry

India: Share of jute production in total agriculture in 09-10: 0.183% by value and 1.6% by volume. The production value has increased from 1991 to 2011 13.88%, with an increase in the market share of 14.5 %.
Bangladesh: Production of raw jute: 1.5 million MT by volume in 10-11 and USD261 million by value in 09-10. Share of raw jute production in agriculture in 2010: 1.401% by value. The production has increased by 41.03 % and market share increased by 42.35%.
China: Production of raw jute in 2010: 40 thousand MT (volume) and USD 11 million
(value). The production index has decreased by a massive 84.79 % and market share by
86.8 %.
Sudan: Production of raw jute in 2010: Int $906,000 by value and 3,200 MT by volume. The far east production data has decreased by 0.8%.

Thailand: Production of raw jute in 2010: 2,300 MT by volume and Intl. $651,000 by value, Yield (fibre): 1.6 MT/ha.
Vietnam: Production of raw jute in 2010: 12,448 MT by volume and Int. $3,525,000 by value.
Myanmar: Production of raw jute in 2010: 3,800 T by volume and USD 1,076,000 by value. Nepal: Production of raw jute in 2010: Intl. $5,937,000 by value and 20,965 MT in volume, Yield (fibre): 1.6 MT/ha.
Indonesia: We can see that there is 70.37 % decrease in the production , and the market share has decreased by 99.72 %.
Combodia: The data availability of this region is out of the scope of this paper, but is assured that the region is not meant to produce JAF.

9

Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry 10

Table 3 : The Degree of Global Competitiveness (1-√∑Mi 2 )
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

1-√∑mi2
0.420540863
0.447534673
0.438181774
0.408810769
0.394039902
0.384518497
0.389328889
0.371790441
0.346536828
0.326072814
0.329039021
0.306879497
0.337908254
0.344142709
0.335075187
0.319225211
0.331298813
0.324695097
0.321273671
0.32185442
0.318476995

Figure 1: Graph for the Degree of Global Competition Along With the Trend Line

Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry

STATISTICAL ANALYSIS
The data set on global JAF production have used to study the time series analysis from 1991 to 2011. In Table 3, we have calculated the Mi 2 where i varies from
1991 to 2011. To examine the trend of competition over the years for detecting any change in the degree of competition in global JAF production, we would like to plot the values of (1-√∑

2)

over the years, which can be observed in Table 3. In view of

Figure 1, we propose to go for linear regression analysis. We shall consider the hypothesis Ho as null hypothesis that there is no change in the degree of global competition in JAF production over the years against Ha as alternative hypothesis that there is an increase or decrease in the same over the years. Let the linear trend equation of Global Competitiveness of JAF producing countries be represented by
Gt = a + b t + εt , (1)
Where Gt is the global competitiveness during the period t, a and b are the regression parameters, t is the time variable, and εt is the error term. Using the least square method one can estimate a and b using time series data using IBM SPSS, the corresponding analysis is presented below:

11

Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry

Gt = 12.611 + 1.523 t + εt
(ε: -.879)

To examine the significance of b value, the regression coefficient of this linear regression curve, we like to test the null hypothesis, h0: b = 0 against the alternative hypothesis that b is greater or lesser than zero, i.e. ha : b > 0 or ha : b < 0. The observed value of t is –8.031, with a tail probability of .000, which is less than .05. Hence rejecting the null hypothesis at 5% level of significance i.e. the global competitiveness of world JAF production is “significantly decreasing over time” as the coefficient of time is negative. The multiple correlate on, i.e. r value, is 0.879 which is also on the higher side. The corresponding analysis of variance table provides with f ratio as
64.497 for which the upper tail probability is 0.000, which is less than 5% level of significance. So, we conclude that, the linearly decreasing trend equation is a good fit.

12

Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry

CONCLUSION
Thus, we finally conclude that the global competition for JAF production is decreasing over the years, whereas, the market share of India is also fluctuating, but is higher in 2011 than 2010; this indicates a threat for Indian Plantations. Among the top ten producing countries of global JAF production the market shares of only Bangladesh is favorable compared to other nine countries. India is one of those countries whose market share is steadily increasing or fluctuating. The performance of India is also is highest in 2002 and not up to the mark in the years 2005, 2006 & 2007. While the world JAF output & trade has grown multifold, the Indian production and exports have not been experiencing any spectral upheaval. There have been falling prices, reduced exports and sluggish consumption growth. Long gestation period, high labour costs and, climatic changes critically affecting demand-supply imbalances, have led to these causes. The problem just does not end here, surging competition from countries like
Bangladesh, Sudan, Thailand & Uzbekistan is also on all time high, which has further weakened Indian exports. The steps government is taking are tremendously essential for the production of JAF like establishing Research facilities, deploying modern technology for the industry, empowering public sector enterprises, marketing the value and profitability of the product. So, on the whole it is a great threat to Indian JAF industry as Bangladesh is doing well and degree of competition is decreasing over the years. The Government is committed to providing a conducive environment to enable the Indian jute and jute textile sector to realize its full potential, to achieve global excellence, and to fulfill its obligations to the different sections of society. It is now the responsibility of government and private players to join hands and establish institutions to help JAF industry grow.

13

Global Competitiveness: A case Jute, Kenaf & Allied Fibres Industry

BIBLIOGRAPHY


Annual

Report,

Ministry

of

Textiles,

Govt.

of

India.(2011).Retrieved

From.www.ministryoftextiles.gov.in.



CIA,The World Fact book. ( 2013). Retrieved From. http://www.cia.gov/library/publications/the-world-factbook/index.html. 

Country Profile, FAOSTAT.(2012). Retrieved From. http://faostat.fao.org/site/666/default.aspx. 

FAO Bulletin of Jute, Kenaf and Allied Fibres. (June 2011).



India/World Bank.(2012). Retrieved From http://data.worldbank.org/country/india.



Indian Jute, Bulletin of National Jute Board (NJB),.(2010). Vol. XXII no. 1.



International Jute Study Group (IJSG). (2012). Retrieved From. http://www.jute.org/wjp/cp_india.htm http://www.jute.org/price.php.

14…...

Similar Documents

Free Essay

Global Competitiveness Report - the Netherlands

...Global Competitiveness Report – Holanda 10 - Tamaño del mercado En el índice de competitividad global, Holanda tiene el puesto 20 por su tamaño de mercado. Holanda es un país pequeño, como del tamaño de Extremadura, a sólo 4 veces más grande que Asturias. Hay 16,7 millones de personas que viven en Holanda. Holanda es un país pequeño, pero su fuerza es el comercio. Desde que esta nación ha existido, el comercio ha sido el principal benefactor de la economía. Debido a sus muchos socios comerciales, el tamaño del mercado es mucho más grande que su propia población. En el pasado, Holanda siempre ha estado centrada en el comercio. Esto comenzó con la fundación de la Compañía Holandesa de las Indias Orientales. En las últimas décadas, lo que fue seguido por la Comunidad Europea del Carbón y del Acero, que Holanda fue cofundador junto con Francia, Alemania Occidental, Italia y los otros países del Benelux. Poco después, la Comunidad Económica Europea, la Comunidad Europea y la Unión Europea siguieron. Todas estas comunidades tenían el propósito de incrementar el comercio entre los países miembros y éstos han mejorado en gran medida la situación social del país. Los productos agrícolas que exporta Holanda son: granos, papas, remolacha, frutas, verduras y ganado. Y las principales industrias son: productos de la agroindustria, metal e ingeniería, maquinaria y equipos eléctricos, productos químicos, derivados del petróleo, la construcción, la microelectrónica y la pesca....

Words: 1114 - Pages: 5

Free Essay

Israel Global Competitiveness Report Analysis Gcr 2013

...Israel Global Competitiveness Report Analysis GCR 2013 Israel dropped one place, from 26th to 27th this year. The meager business sector in Israel is high-tech industrial sector. This innovation business combined with the presence the best research institutions on the world. Supported by the government’s public procurement policies. Give Israel high rank Israel have varies industries. Like high-technology products, metal products “diamond”, electronic and biomedical equipment, agricultural products, processed foods, chemicals, and transport equipment. Science and technology in Israel is one of the country's most highly developed and industrialized . Israel are the 1st of the world for expenses at R&D “Research and Development “, as percent of GDP Gross domestic product. The research institutes are not only supports business. This lead to get the 6th place of patents on the world, and 4th according to PCT patents applications per million populations. Many of international company invest in R&N in Israel. For examples Intel, Microsoft, Cisco, Motorola, and more than 20 high-tech companies on the world have institutes in Israel. Most of these institutes was the first one out of their original countries. Macroeconomic is a meager key on business development. Israelis success on increasing budgetary discipline with a view to reducing debt levels. This will help the country maintaining stability and support economic growth going into the future. Israel investing and......

Words: 750 - Pages: 3

Free Essay

Competitiveness of Japan

...National Competitiveness of Japan ABSTRACT: Japan is the third largest economy. It had been so successful and competitive before 1990. It has been in stagnation for two decades. This paper is going to examine if Japan still retains her national competitive advantage and as an attractive place for MNE from different internal analysis. There will be suggestions of how Japan can improve her international competitiveness. INTRODUCTION Japan had experienced tremendously economic growth after World War II until 1980s. Nikkei stock market index has experienced a high hit of 40,000 in Year 1989. After the appreciation of yen, mistakes in fiscal policy and a serious bubble economy in 1990s, Japan fell into recession for more than two decades. To make it worse, the economic crisis in 2008 and March 11, 2011 earthquake and tsunami in Japan were a great hit to the economy. A decline in exports and increase in imports, especially fuels and energy, made Japan has to face trade deficit and how to increase its international competitiveness. There were some signs of recovery from 2012, especially with Shinzo Abe became the Prime Minister and implemented “The Three arrow”, which is a series of fiscal, monetary policy and structural reforms, so called “Abeconomics”. The PEST model which macroeconomic environment will be analyzed and see whether it is attractive for MNE come to Japan. From Porter’s Diamond model, how Japan can increase its national competitiveness will be further......

Words: 4067 - Pages: 17

Free Essay

Competitiveness in International Trade

...Indonesia Eases Quotas on Beef From Australia Published: May 28, 2013 Retrieved from: http://www.nytimes.com/2013/05/29/business/global/indonesia-eases-quotas-on-beeffrom-australia.html?_r=0 SYDNEY — The Australian beef industry will be able to increase sales to Indonesia, one of its biggest markets, after Jakarta relaxed restrictions on some imports to hold down local beef prices and prevent supply shortages under a policy aimed at increasing self-sufficiency. Indonesia has agreed to exempt ―premium‖ Australian beef imports from quotas, Trade Minister Craig Emerson of Australia said Tuesday. It will also allow live cattle exporters to start filling quotas intended for the final six months of the year ahead of schedule. Australia is among the world’s biggest beef exporters and has relied heavily on Indonesian demand, but the tightening of quotas by what was its largest live cattle market in 2012 and 2013 hurt the industry. Indonesia cut its 2012 import quotas for live cattle more than a third and for beef nearly two-thirds, while 2013 quotas were cut another 30 percent for cattle and 6 percent for beef, as Jakarta sought to promote its domestic beef market. Australian beef cattle prices have recovered slightly in the past week, with the Eastern Young Cattle Indicator, a benchmark, rising 2 cents Monday to 2.96 Australian dollars, or $2.86, per kilogram, or 2.2 pounds, although prices remain 20 percent lower than a year ago. ―Today’s decision means that those farmers that......

Words: 1969 - Pages: 8

Premium Essay

A New Vision of Competitiveness

...Theoretical and Applied Economics VolumeXX (2013), No. 10(587), pp 23-32 A new vision on competitiveness within the post-crisis economy. Causes, evoiutions and possibie innovative soiutions to fight against the undesirable effects of the economic crisis Laura Mariana CISMAÇ West University Timisoara laura.cismas@feaa.uvt.ro Ruxandra Ioana PITORAC West University Timiçoara ruxandrapitorac@gmail.com Abstract. The main objective of this paper is to highlight the need for promoting a new vision regarding competitiveness mostly in the context of amplifying the effects and the complexity of the nature of crisis manifested now on the international level (economic, environment, demographic, value and moral etc.). The economic thinking pays increased attention to the issues related to economic crisis, as well as the development of theories that give satisfactory answers about the causes and, especially, the solutions to the crisis. Using scientific observation and comparative case study as research methods, this paper aims to make a theoretical critical review of the theories regarding the causes of economic crisis over time and to identify and analyze some anti-crisis policies. Keywords: economic competitiveness. crisis; macroeconomic theories; anti-crisis policies; JEL Classification: E30, GOL REL Classification: 81, 8M. 24 Laura Mariana Cisma§, Ruxandra ioana Pitorac Introduction Theoretical controversy on crises has augmented over the last two decades with a......

Words: 3332 - Pages: 14

Premium Essay

Managing Competitiveness Using Production Volumes - Product Variety Model for Automobile Industry

...Life Science Journal 2013;10(4s) http://www.lifesciencesite.com Managing Competitiveness using Production Volumes - Product Variety Model for Automobile Industry Mirza Jahanzaib, Syed Athar Masood, Khalid Akhtar, Khurram Ali Industrial Engineering Department, University of Engineering & Technology, Taxila, Pakistan * jahan.zaib@uettaxila.edu.pk ABSTRACT: The manufacturing industries can be classified into process industry (PI) and discrete parts manufacturing industry (DPMI). Process industries have dedicated product line with fixed processes, routings and planning, whereas while discrete parts manufacturing industries are more flexible in terms of production volumes and varieties. For economic manufacturing, the optimum combination of Volume – Variety exists i.e. job shop, batch production system or mass production. In this paper, we have looked at the typical production volumes and varieties and have argued that there exist very low variety and low to medium production volumes for this particular sector. This calls for investigating ways and strategies to effectively cope with this situation. By taking a case of automobile part vendors triple strategy approach is adopted. Three strategies are not mutually exclusive – a subsequent strategy assumes that the previous strategy has been executed earlier and its benefits/ results still exist when the subsequent strategy is implemented. Strategies are, Good Governance Strategy (GGS), an Automation Strategy (AS) and an Export...

Words: 3868 - Pages: 16

Premium Essay

Analysis of Global Production Networks Within Consumer Electronic Industry.

...Analysis of Global Production Networks within Consumer Electronic Industry. Introduction A diagnostic characteristic of contemporary globalization is that the component parts of the world economy are increasingly interconnected in qualitatively different ways from the past. Another way of saying this is that the world economy consists of tangled webs of production circuits and networks that cut through, and across, all geographical scales, including the bounded territory of the state. It is too simple to just define the global production networks, that involving a process of production, distribution and consumption of commodities, goods and services, as technical-economic mechanisms (Coe, Dicken and Hess, 2008). More than this oversimplified conceptual framework, Levy (2008) argues GPN as ‘simultaneously economic and political phenomena . . . organizational fields in which actors struggle over the construction of economic relationships, governance structures, institutional rules and norms, and discursive frames . . . GPNs thus exist within the ‘‘transnational space’’ that is constituted and structured by transnational elites, institutions, and ideologies’. In Levy’s theory, we can find out that more than a economic process of productions, GPNs is also a ‘social’ and ‘cultural’ phenomena in which the geographically differentiated political and social cultural circumstance are also shaped (Coe, Dicken and Hess, 2008). Considering the consumer electronic industry in......

Words: 3745 - Pages: 15

Premium Essay

Global Production

...Global Production, Outsourcing, and Logistics Learning objectives • Explain why production and logistics decisions are of central importance to many multinational businesses. • Explain how country differences, production technology, and product features all affect the choice of where to locate production activities. • Recognize how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. • Identify the factors that influence a firm’s decision of whether to source supplies from within the company or from foreign suppliers. • Describe what is required to efficiently coordinate a globally dispersed production system. This chapter focuses on two major activities—production and materials management, and attempts to clarify how when they are performed internationally, the cost of value creation can be lowered, and how value can be added by better serving customer needs. The choice of an optimal manufacturing location must consider country factors, technological factors, and product factors. Foreign factories can improve their capabilities over time, and this can be of immense strategic benefit to the firm. Managers need to view foreign factories as potential centers of excellence and encourage and foster attempts by local managers to upgrade factory capabilities. An essential issue in many international businesses is determining which component parts should be manufactured in-house...

Words: 5836 - Pages: 24

Free Essay

Global Competitiveness of Labor Force in Malaysia, Singapore and Myanmar.

...Malaysia’s global rank is number 20 out of 144 countries, which considered as a good result for the developing country. On the other hand we can observe that the countries where the company would like to expand to, demonstrate absolutely opposite from each other scores. Singapore holds second global rank, where Myanmar is on 134. It should be a clear sign that the countries have very different economic positions; therefore parent company should expect various challenges arising throughout the expansion. Furthermore approaches for solving these challenges will be differ depending on the country. 4 Score for the pillar of Health & Primary Education in Myanmar is very low. It can result in poor health of the employees, high level of absenteeism or sick leaves. At the same time the primary education can also be related to the level of productivity and ability to adapt to changes. In contrast, Singapore holds rank 2, which characterize Singaporean workforce as opposite of Myanmar. Malaysia rank is 33, which portray good health of workforce and acceptance of innovative processes. Countries with a high score for higher education and training, like Singapore provide a good quality of education to the majority of the workforce and constantly invest in the training of existing employees in order to enhance their skills and increase efficiency. On the other hand Myanmar holds one out of ten the lowest scores in the world, which indicates the scare of skilled labor in......

Words: 601 - Pages: 3

Premium Essay

Global Production Network Impact on Developing Countries

...Standard Front Page for 48-hours essay, Methodological Workshop (5 ECTS) and synopsis Compulsory use for all 48-hours’ essays, Methodological Workshop (5 ECTS) and Synopses on the following subjects: • International Develoment Studies • Global Studies • Erasmus Mundus, Global Studies – A European Perspective • Public Administration • Social Science • EU-studies • Public Administration, MPA Course title: International Development Kind of assignment (48-hours essay, Methodological Workshop (5 ECTS) and synopsis): 48-hours essay Question number: 1 Student’s name: Edda Maria von Wildenradt Study card no./Birthday: 51970 Keystrokes/characters including spaces (Please look at the supplementary provisions for maximum-value): 14359 Submission date: 03-06-2015 Roskilde Universitet Den samfundsvidenskabelige bacheloruddannelse 2 In the following essay I will address some specific issues in the global South that are influenced by international trade and trade regulation. This essay will provide a critical perspective on how international trade and trade regulations function and by this rise following questions: Which consequences have the international trade and trade regulation had in the given periods? Who benefits from the international trade and trade regulation? And lastly, is international trade and trade regulation only designed to benefit one part of the world - the West? Why......

Words: 2460 - Pages: 10

Premium Essay

"The Uk Rose from 12th Place to 9th Place in the Global Competitiveness Index Between 2008 and 2014. Examine the Factors Which Might Have Caused an Increase in the International Competitiveness of the Uk's Goods and Services" (20 Marks)

...have refined international competition. The UK’s international competitiveness measures the relative cost of British exports. The impact of the financial crisis notwithstanding, the UK economy has grown strongly since 1997, outpacing the rest of the G7 with the exception of Canada in terms of growth in GDP per capita. This strong performance was not achieved by a significant increase in hours worked, but rather a sustained period of faster labour productivity growth relative to our competitors. During this time, the UK could have faced an improvement in their education and training which leads to improved skills and therefore increasing productivity. This means there’s more output per worker – this decreases the costs of production for firms, lowering the price and therefore causing international competitiveness to increase. However, labour unit costs in the UK are very high due to the National Minimum Wage, meaning that labour costs per unit is high, causing higher wage costs, therefore meaning that the impact of productivity on increasing international competitiveness is limited to an extent. Non-wage costs like National Insurance contributions paid by employers, employment protection and anti-discrimination laws are frequently much higher in developed countries like the UK than in developing countries and so have the effect of reducing the international competitiveness of goods and services. Competitiveness is determined by a variety of factors, but one of the most......

Words: 655 - Pages: 3

Free Essay

Competitiveness

...This figure excludes the cover page COMPETITIVENESS BSM018 This essay will discuss competitiveness of countries and account for a competitiveness indicator the United States (US), a member of the Organization of Economic Cooperation Countries (OECD) performs strongly in. It will also look at two competitiveness indicators where US underperforms and suggests ways in which such indicators could be improved. In addition to this, it will consider to what extent international practices match economic theories. First, the term competitiveness, and various methods used to measure it will be discussed. The second section will examine one competitiveness indicator in which the US excels. Two competitiveness indicators in which the US underperforms will be explored in the third section, and in particular, ways in which these indicators could be improved. Finally, the extent to which current practices match theories will be discussed. There is no accepted definition for the term “national competitiveness and it has become a much-debated concept. Clark and Tracey (2004) argued that the definition of competitiveness is one of the many unresolved debates posing significant challenges to contemporary academic inquiry and policy-making in the field of globalization and economic integration. Equally, Chursin and Makarov (2015 p.4) note that “with reference to an economic entity, market participant, economic process, etc., the meaning of competitiveness is interpreted in terms of the......

Words: 1765 - Pages: 8

Premium Essay

Toyota's Global Production Strategy

...Sylhet International University A Case Study on “Toyota's Global Production Strategy” Rahat Sarkar Department of Business Administration Sylhet International University. Bangladesh. Mobile Number: +8801715813483 Q:1)Why has Toyota been successful? 1.Successful brand - Toyota has developed a trusted brand based on quality, good performance and for being environmentally friendly. 2.Innovation - Toyota is at the forefront of car manufacturing innovation.  It was the first car manufacturer to embrace lean manufacturing (known as Toyota Production System) which is a faster, more efficient process which leads to less waste compared to the traditional batch and queue method of manufacturing.  It also applied JIT (Just in Time manufacturing) and smart automation. 3.Product Development - Key to the success in the car market is new models which stimulate demand and loyalty to the Toyota brand.  Toyota has reputation for producing cars which are greener, more fuel efficient, and of good performance. Toyota has sought to meet government requirements, economic changes through the development of hybrid fuels.  Q:2)What are the strategies for gaining entrance into foreign countries? It successfully entered markets and penetrated them with both manufacturing and sales subsidiaries. Toyota gained first mover advantages by presence in globally strategic markets (Asia, Europe, US) first, whereas its nearest rivals (Ford, GM) gained footholds in only 2 of (US and......

Words: 405 - Pages: 2

Free Essay

Competitiveness

... ▪ Duration: 6 months Course 3. French Language course ▪ Institution: Institute of Modern Language, University of Dhaka ▪ Duration: 6 months course Achievements ▪ Obtained Government Merit scholarship for securing GPA - 5.00 in both SSC and HSC examinations . ▪ Obtained merit position 16th in C unit admission test of Dhaka University in 2007-08 . Extracurricular activities ▪ Played Cricket and Football for department of International Business in inter- department competition as well as for S.M Hall in inter-hall competition. ▪ Organizer ✓ Seminar on “Bangladesh in International Business: Opportunities, Challenges and Policy Options in Trade Competitiveness and Regional Integration” Venue: Senate Bhaban, University of Dhaka, Year: December, 2010 ✓ Corporate Bridge (Job Fair, Seminar & BBA Completion Ceremony) Venue: Faculty of Business Studies, University of Dhaka. Year: July, 2011. ▪ Volunteer ✓ Job Fair & Seminar on Leadership development through business innovation Venue: Faculty of Business Studies, University of Dhaka. Year: August 2008. ✓ Dhaka international Trade fair (DITF)-2010 held on 1stJanuary to 31th January at Sher-e-Bangla Nagar (West side of Bangladesh-China Friendship Centre), Dhaka Membership and affiliations ▪ Founding Organizing Secretary: Students’ Association of International Business......

Words: 541 - Pages: 3

Premium Essay

Competitiveness & Productivity of Cib

...Project Competitiveness & Productivity Company Name: Commercial International Bank ‘CIB’ Presented to: Instructor: Dr. Ghada Aly Assistant: Mohamed Salah Group: ‘A’ By: Amir Menesy ............................................. 094283 Sarah Mazen …......................................... 093081 Sherif Gabriel …......................................... 086119 Abstract Competitiveness and productivity will give any organization a benefit over it’s rivals in the industry. This research aims to show the importance of competitiveness and productivity and how to excel at making the most of them. It also explains the vague terms and ideas within these concepts to give a better understanding of them. New advancements and technologies and their consequences and outcomes, in addition to what industries employ these issues in the most effective and efficient way will be discussed. Labor productivity and its essentials are broken down into detail. Competitive concepts and how to make the best use of competition is very difficult. Introduction Productivity is a measure of output from a production process per unit of input. Productivity is designed for use in economic analysis and public and private policy planning. Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. The methods of combining the inputs of production in the process of......

Words: 4993 - Pages: 20