ABSTRACT

A frequently-applied method of obtaining information on the relative competitiveness of different industries is the concept of revealed comparative advantage (RCA), which calculates the excess of an industry's exports over its imports, relative to the country's total net exports. The international competitiveness of manufacturing industries of Brazil is considered in detail, especially by looking at different export markets. In addition to the RCA concept, international competitiveness across manufacturing industries is analysed on the basis of the export-performance ratios presented. The net trade measures for basic manufactures reveal a somewhat different picture. At the overall level, RCAs are positive for Associacao Latino-Americana de Integracao and other Third World markets but negative for the developed country market. The analysis in the preceding paragraphs has shown significant differences in Brazilian trade patterns with developed economies on the one hand and developing countries on the other. In trade with advanced countries, Brazil's export performance was most favourable in products generally considered to be labour-intensive.