Halal market emergence and export opportunity: the comparative advantage perspective

Kabir, Shahriar and Shams, Syed and Lawrey, Roger (2019) Halal market emergence and export opportunity: the comparative advantage perspective. In: 12th International Conference on Management Science and Engineering Management (ICMSEM 2018), 1-4 August 2018, Melbourne, Australia.

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Abstract

The comparative advantage theory of international trade states that countries should export commodities for which they have high comparative advantage and import commodities for which they have low comparative advantage. Analyzing the Halal trade flows for Malaysia’s 11 food/foodrelated commodities from 1991 to 2012, this study finds an interesting development of the standard view of comparative advantage in the emerging Halal export market. It finds that the greater the country’s current comparative advantage in an exported good, the higher the risk of export diversion (one- or two-way causality) between the Halal market and the conventional market with the country’s expansion of Halal exports; while the diversion risk disappears with lower current comparative advantage. Thus, the study suggests that if a country wants to take advantage of the fast-emerging market, it should aim to expand export of commodities with relatively low current comparative advantage but high demand in the emerging market.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Accepted version deposited in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 24 May 2021 04:48
Last Modified: 31 May 2021 03:15
Uncontrolled Keywords: trade, comparative advantage, Halal
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380199 Applied economics not elsewhere classified
Identification Number or DOI: https://doi.org/10.1007/978-3-319-93351-1_122
URI: http://eprints.usq.edu.au/id/eprint/42010

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