Dynamics of Export Competitiveness in Global Tea Trade: A Comparative Study of Major Exporters

Abstract

This study examines the export competitiveness of four major tea-exporting countries, namely India, China, Kenya and Sri Lanka, during 2000-2024 using the Revealed Comparative Advantage (RCA) and Revealed Symmetric Comparative Advantage (RSCA) indices. It further evaluates the stability of export competitiveness through the Coefficient of Variation (CV) and Cuddy-Della Valle Index (CDVI), while temporal changes in competitiveness are analysed using a semi-log trend model. Secondary data were obtained from the FAOSTAT database. The results indicate that all selected countries maintained a comparative advantage (RCA > 1) in tea exports throughout the study period. Kenya exhibited the highest and most persistent comparative advantage, followed by Sri Lanka, China and India. China demonstrated a steady improvement in export competitiveness with the lowest instability, reflecting structural strengthening and sustained market expansion. In contrast, India and Sri Lanka experienced significant declines in comparative advantage, indicating weakening competitiveness despite maintaining export specialisation. Kenya retained exceptionally high competitiveness with only marginal improvement over time, which is characteristic of a mature export sector. The findings suggest that enhancing productivity, improving quality standards, diversifying export markets and promoting technological innovation are important for sustaining competitiveness in the evolving global tea market, particularly for countries experiencing declining comparative advantage.