Argentina, Bolivia, Brazil and Paraguay currently occupy important positions in the global soybean commodities trade; and also are contributing to the erosion of the US share of the export market. This research analyzes the economic importance of soybean commodities in the current situation, and compares production and trade performance among the major exporting countries in South America. This research attempts to assess competitiveness and comparative advantages using empirical methods as well as descriptive representations of trade performance using the Boston Consulting Group (BCG) method. The calculation of revealed comparative advantage (lnRCA) indices during the period 1970-2004; are analyzed in time-series curves; we proposed the calculation of polynomial trend lines to represent the trends in lnRCA over time. By considering market domination by the US, Brazil and Argentina, as well as the existence of smaller exporters like Paraguay and Bolivia, this research demonstrated that minor exporters are performing suitable development and improvement in terms of competitive performance, despite the small volumes traded. The lnRCA patterns for different commodities from South America suggest that a "catch-up" effect originated with the loss of the comparative advantage US position in the global market, and this effect showed statistical significance for Argentina, Bolivia, and Paraguay. High indices for soybean oil commodities are an indication that Bolivian exports shifted to processed and higher-valued soybean commodity production from unprocessed soybean production and trade. By calculating and comparing RCA indices, this review considers that Paraguay is the best-positioned country in terms of comparative advantage, while Bolivia is also very competitive in terms of soybean cake and oil. Thus, the future success of Bolivia, Paraguay and Uruguay will basically reside in their ability to build market share and attract large amounts of investment. The South American soybean-producers showed high comparative advantage compared to the United States, the largest soybean-producer of the world. We understand that specialization on soybean production and development of crushing industry have played an important role; and the intensive use of abundant factors are creating the proper conditions to achieve high comparative advantage and competitiveness in the world market.
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