Greener Journal of Economics and Accountancy

Open Access

Damiyano et al

Greener Journal of  Economics and Accountancy Vol. 3 (1), pp. 001-008, April 2014

 ISSN: 2354-2357 © 2011 Greener Journals

Research Paper

Manuscript Number: 1209131019

 

Mozambique’s Inter-Industry Comparative Advantage

 

Damiyano David*1, Mzumara Macleans

Muchingami Lovemore3

 

1,2,3Department of Economics, Bindura University of Science Education, P/Bag 1020, Bindura, Zimbabwe.

 

Emails:  2macmzumara @ yahoo.com3lavmuch @ gmail. com

 

*Corresponding Author’s Email: davydamex @ yahoo. co. uk


Abstract:

The authors investigated inter-industry comparative advantage in Mozambique. In Mozambique, industries lack comparative advantage. However, in comparison between industries (inter-industry), machinery/electric tops in Mozambique followed by vegetable product industry. Foot wear/head gear demonstrates lack of comparative advantage and it is followed by plastic/rubber industry. In general, Industries in Mozambique show lack of comparative advantage. It is recommended that Mozambique should enact policies that encourage foreign direct investment (FDI). It is further recommended that Mozambique should be investing in exploring undiscovered endowment which when discovered can boost comparative advantage. Mozambique should consider accepting these results and come up with a concrete industrial policy which can improve export capabilities of Mozambique’s industries on the international market.

Keywords: Intra-industry, comparative advantage, international trade, Mozambique.

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