Competitiveness of the La Libertad region in agricultural exports, Peru, 2011-2023

Alberto-Marcos Soriano-Colchado, Ramón-Alberto Diez-Matallana, Raquel-Margot Gómez-Oscorima, Luis-Alberto Jiménez, Carolay-Zully Vasquez-Quispe
Download article Read article

Abstract

The increasing global demand for high-value agricultural products emphasises the need to understand regional export competitiveness. The study aimed to evaluate La Libertad’s comparative advantages in agricultural exports from 2011 to 2023. By employing the Revealed Comparative Advantage (RCA), Export Comparative Advantage (ECA), and Import Comparative Advantage (ICA) indices, alongside Porter’s Diamond, the region’s performance and the determinants of competitiveness across 11 key export products were analysed. These products include fruits such as blueberries, avocados, and grapes, as well as vegetables such as asparagus and piquillo peppers. The analysis revealed strong ECAs for fruits and vegetables, with values ranging from 1.56 to 7.08, and a promising specialisation in cane sugar (RCA of 1.28). The findings indicate that most of these products possess strong to moderate comparative advantages in international markets, with products like blueberries and avocados leading in competitiveness. However, certain challenges remain, including the need for strategic business management and technological innovation to maintain and improve the sector’s competitiveness. The study underscores the importance of continuous monitoring and adaptation to ensure the sustainability and growth of Peru’s agro-export sector. These findings offer valuable insights for policymakers and regional planners seeking to enhance La Libertad’s agricultural export potential

Keywords

Porter’s Diamond; fruits and vegetables; revealed comparative advantages

[1] Aggio, C., Milesi, D., Verre, V., Zanazzi, L., & Lengyel, M. (2022). Rise and fall (and recovery?) of the blueberry business in Argentina: An analysis of private and public-private strategies. Journal of Agribusiness in Developing and Emerging Economies, 12(4), 584-603. doi: 10.1108/JADEE-10-2021-0270.

[2] Anderson, M., Gómez, R., Diez, R., & Linares, A. (2021). Competitiveness of Peru and South America in the production of rice (Oryza sativa) and potato (Solanum tuberosum). Scientific Annals, 82(1), 11-21. doi: 10.21704/ ac.v82i1.1737.

[3] Babacan, M. (2018). Beyond planning and liberalization: Foreign trade and industrial development in Turkey. In Turkish economy (pp. 355-384). Cham: Palgrave Macmillan. doi: 10.1007/978-3-319-70380-0_16.

[4] Bahta, Y.T. (2021). Competitiveness of South Africa’s agri-food commodities. AIMS Agriculture and Food, 6(4), 945-968. doi: 10.3934/agrfood.2021057.

[5] Ballena, V. (2019). Evolution of foreign trade by customs according to primary production in Peru, 2005-2015. Regional and Sectoral Economic Studies, 19(1), 77-107.

[6] Cáceres Candia, D.P., Risco Mendoza, A., Quiroz-Delgado, P.E., & Apaza-Tapia, W.E. (2021). Control of Botrytis cinerea Pers. in ‘Okitsu’ Satsuma mandarin by biological and chemical fungicides in Huaura, Peru. Peruvian Journal of Agronomy, 5(1), 18-24. doi: 10.21704/pja.v5i1.1760.

[7] Carter, M.R., & Mesbah, D. (1993). Can land market reform mitigate the exclusionary aspects of rapid agroexport growth? World Development, 21(7), 1085-1100. doi: 10.1016/0305-750X(93)90001-P.

[8] Castillo, L.P. (2021). Situation of the agro-export and agro-industrial sector and the new law on the agricultural labour regime. Peru: Institute for Trade Union Studies.

[9] Central Reserve Bank of Peru (CRBP). (2022). Retrieved from https://www.bcrp.gob.pe/en.

[10] Crupi, P., Faienza, M.F., Naeem, M.Y., Corvo, F., Clodoveo, M.L., & Muraglia, M. (2023). Overview of the potential beneficial effects of carotenoids on consumer health and well being. Antioxidants, 12(5), article number 1069. doi: 10.3390/antiox12051069.

[11] De, A., & Singh, S.P. (2022). Analysis of competitiveness in agri-supply chain logistics outsourcing: A B2B contractual framework. Sustainability, 14(11), article number 6866. doi: 10.3390/su14116866.

[12] Duarte, O. (2019). Analysis of the various factors affecting productivity in fruit growing: The case of Peru. Chile: Cieplan.

[13] Escalante, D.A., Olivera, J.M., Miranda, M.R., & Venegas, P.B. (2023). Peruvian agro-export sector: A competitiveness study on their main products in the period 2010-2019. Journal Globalization, Competitiveness and Governability, 17(2), 34-50. doi: 10.58416/GCG.2023.V17.N2.01.

[14] Esteve-Llorens, X., Ita-Nagy, D., Parodi, E., Gonzales-García, S., Moreira, M.T., Feijoo, G., & Vázquez-Rowe, I. (2022). Environmental footprint of critical agro-export products in the Peruvian hyper-arid coast: A case study for green asparagus and avocado. Science of the Total Environment, 818, article number 151686. doi: 10.1016/j.scitotenv.2021.151686.

[15] Feng, H.-P., Yu, P.-C., Huang, S.-H., Huang, Y.-C., Chen, C.F., Sun, C.-A., Wang, B.L., Chien, W., & Chiang, C.-H. (2023). The benefit of vegetarian diets for reducing blood pressure in Taiwan: A historically prospective cohort study. Journal of Health, Population and Nutrition, 42, article number 41. doi: 10.1186/s41043-023-00377-3.

[16] Flores, S.R., Pérez-Delgado, O., Naveda-Renny, N., Benites, S.M., De La Cruz–Noriega, M., & Narciso, D.A.D. (2022). Generation of bioelectricity using molasses as fuel in microbial fuel cells. Environmental Research, Engineering and Management, 78(2), 19-27. doi: 10.5755/j01.erem.78.2.30668.

[17] Fresh Fruit Report. (2021). Retrieved from https://preciso.pe/proyecto/fresh-fruit-fresh-report/.

[18] Gariballa, S., Al-Bluwi, G.S.M., & Yasin, J. (2023). Increased fruit and vegetable consumption mitigates oxidative damage and associated inflammatory response in obese subjects independent of body weight change. Nutrients, 15(7), article number 1638. doi: 10.3390/nu15071638.

[19] Grdeń, P., & Jakubczyk, A. (2023). Health benefits of legume seeds. Journal of the Science of Food and Agriculture, 103(11), 5213-5220. doi: 10.1002/jsfa.12585.

[20] Hancco, J.F.A. (2022). Competitiveness: A strategic resource-based approach to business management. TECHNO Review. International Technology, Science and Society Review, 11(5), 1-15. doi: 10.37467/revtechno.v11.4449.

[21] Harati, M., Tayarani-Najaran, Z., & Javadi, B. (2023). Dietary flavonoids: Promising compounds for targeting α-synucleinopathy in Parkinson’s disease. PharmaNutrition, 24, article number 100334. doi: 10.1016/j. phanu.2023.100334.

[22] Harya, G. I., Hanani, N., Asmara, R., & Muhaimin, W. (2023). Dynamic capabilities for leading industries: Proof of export commitment of chocolate products. Bulgarian Journal of Agricultural Science, 29(4), 579-589.

[23] Heredia, J., & Huarachi, J. (2009). The Revealed Comparative Advantage Index (RCA) between Peru and the World’s Leading Exporters: The case of the Lambayeque Region. Diffusion Notebooks, 14(26), 27-56. doi: 10.46631/ jefas.2009.v14n26.02.

[24] Hinloopen, J., & van Marrewijk, C. (2004). Dynamics of Chinese comparative advantage. Amsterdam and Rotterdam: Tinbergen Institute Discussion.

[25] Inga-Ávila, M.F. (2022). Dynamics of the behavior of competitiveness factors in the textile sector. Uncertain Supply Chain Management, 10(2022) 877-886. doi: 10.5267/j.uscm.2022.3.007.

[26] Laursen, K. (1998). Revealed comparative advantage and the alternatives as measures of international specialization. Copenhagen: Copenhagen Business School.

[27] Mills-Novoa, M. (2020). Making agro-export entrepreneurs out of Campesinos: The role of water policy reform, agricultural development initiatives, and the specter of climate change in reshaping agricultural systems in Piura, Peru. Agriculture and Human Values, 37(3), 667-682. doi: 10.1007/s10460-019-10008-5

[28] Montes Ninaquispe, J.C., Arbulú Ballesteros, M.A., Cruz Salinas, L.E., García Juárez, H.D., Farfán Chilicaus, G.C., Martel Acosta, R., Guzmán Valle, M.D.L.Á., & Coronel Estela, C.V. (2024). A strategy for the sustainability of Peru’s blueberry exports: Diversification and competitiveness. Sustainability, 16(15), article number 6606. doi: 10.3390/su16156606.

[29] Ospina, C.E., Garavito, L.V., & Correa, D.L. (2023). Hass avocado value chain: inter-institutional processes towards export in Cauca, Colombia. RIVAR, 10(28), 235-252. doi: 10.35588/rivar.v10i28.5333.

[30] Panagopoulos, A., & Giannika, V. (2023). Study on the water resources and the opportunities for sustainable desalination & minimal/zero liquid discharge (MLD/ZLD) practices in Greece (Eastern Mediterranean). Sustainable Water Resources Management, 9, article number 106. doi: 10.1007/s40899-023-00884-5.

[31] Pérez-Romero, M.E., Azuara-Jiménez, J.A., Jiménez-Islas, D., Ventura-Cruz, I., & Flores-Romero, M.B. (2022). Analysis of comparative advantage in global biofuels production. Business Unrest, 22(2), 55-70. doi: 10.19053/01211048.13862.

[32] Ramos-Sandoval, R. (2019). Does associativity affect likelihood Peruvian small-scale farms internationalization? In 2019 IEEE sciences and humanities international research conference (pp. 1-4). Peru: IEEE. doi: 10.1109/ SHIRCON48091.2019.9024858.

[33] Roszko-Wójtowicz, E., & Grzelak, M.M. (2020). Macroeconomic stability and the level of competitiveness in EU member states: A comparative dynamic approach. Oeconomia Copernicana, 11(4), 657-688. doi: 10.24136/ OC.2020.027.

[34] Salas-Canales, J. (2020). Non-traditional agro-exports and their contribution to Peruvian economic development. Mastery of Science, 6(1), 4-27. doi: 10.23857/dc.v6i1.1343.

[35] SPCH (Special Project Chavimochic). (2023). Retrieved from https://www.gob.pe/chavimochic.

[36] Tamar, Z., & López, A. (2022). The trinomial of comparative advantages revealed in Sader’s North American basket of goods and services. The Anáhuac Journal, 19(2), 39-69. doi: 10.36105/theanahuacjour.2019v19n2.02.

[37] Thibeault, A., Ryder, M., Tomomewo, O., & Mann, M. (2023). A review of competitive advantage theory applied to the global rare earth industry transition. Resources Policy, 85, article number 103795. doi: 10.1016/j.resourpol.2023.103795.

[38] Trade map. (n.d.). Retrieved from https://www.trademap.org/Index.aspx.

[39] Tsai, P.H., Chen, C.J., & Yang, H.C. (2021). Using Porter’s diamond model to assess the competitiveness of Taiwan’s solar photovoltaic industry. Sage Open, 11(1). doi: 10.1177/2158244020988286.

[40] Vollrath, T. (1991). A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage. Review of World Economics, 127, 265-280. doi: 10.1007/BF02707986.

[41] World Bank. (2016). Retrieved from https://documents1.worldbank.org/curated/en/555181547057977330/ pdf/133561-WP-P145783-Analisis-dela-Logistica-Peru.pdf

Soriano-Colchado, A.-M., Diez-Matallana, R.-A., Gómez-Oscorima, R.-M., Jiménez, L.-A., & Vasquez-Quispe, C.-Z. (2024). Competitiveness of the La Libertad region in agricultural exports, Peru, 2011-2023. Scientific Horizons, 27(9), 121-133. https://doi.org/10.48077/scihor9.2024.121