Revealed Comparative Advantage of Selected Agricultural Commodities in Afghanistan

Abstract

This study examines the comparative advantage of agricultural products using the Balassa index, which measures the degree of specialization of export products. The study compares the export performance of five agriculture commodities before and after the establishment of the Economic Cooperation Organization (ECO) bloc and the ECO trade agreement. The research found that Afghanistan has a strong comparative advantage among five selected agricultural commodities, but the flour of pulses and other fresh vegetables will have no advantage after 2021. Instead, the country can focus on producing cereals and cotton, as these products display strong index values. The study suggests that Afghanistan should accelerate export promotion policies, increase participation in regional trade fares, and improve product quality to remain competitive in regional and international markets.