Revealed comparative advantage and competitiveness of Uganda’s exports with the rest of the world

This paper was developed by author when attending a specialised course in Quantitative Trade policy Analysis at Trade Training Centre in Africa (TRAPCA), East and Southern Africa Management Institute in Arusha, 31st/ 03-11th/ 04/2008.This paper examined the comparative advantage and competitiveness of Uganda’s exports with the rest world and how this has changed over the period between 2000 and 2005 with a trade-based index of the Revealed Comparative Advantage (RCA). Data used in this study was obtained from the United Nations Commodity Trade Statistics Database (UNCOMTRADE), based on Standard International Trade Classification. The results revealed that Uganda has a comparative advantage in indigenous sectors such as food and live animals, beverages and tobacco, crude materials, inedible except fuels and animal and vegetable oils and fats. Food and live animals sector has a strikingly high comparative advantage with a revealed comparative advantage. In construct, manufacturing sectors producing mineral fuels, lubricants and related materials, chemicals, manufactured goods, machinery and transport equipment and miscellaneous manufactured articles have a comparative disadvantage. However, these sectors revealed improvement in comparative advantage with the exception of mineral fuels, lubricants and related material. The paper recommends among others, protection and improvement in those sectors that recorded competitiveness. Strengthening the competitiveness of these products against rivalry countries could help in reinforcing and developing the potentials of the Uganda’s products in the world market