Comparative and Competitive Advantages in Coffee Exports: Examining the Role of FDI and Exchange Rates

DOI

10.2991/978-94-6239-709-5_41How to use a DOI?

Keywords

coffee exports; comparative advantage; competitive advantage; foreign direct investment (FDI); real exchange rate

Abstract

This study examines the effects of foreign direct investment (FDI) inflows and real exchange rates on the quantity of coffee exports, while explicitly accounting for the roles of comparative and competitive advantages. Using annual data for Brazil, Vietnam, Colombia, Indonesia and India over the period 2009–2019, we estimate a panel path analysis model within a structural equation modelling framework. Comparative advantage is measured using the normalised revealed comparative advantage index, and competitive advantage is proxied by differences in export price indices. The empirical results show that FDI inflows have a positive and statistically significant direct effect on coffee export quantity, confirming their role in strengthening export capacity through technology, capital and market access. However, FDI exerts a significant negative indirect effect on exports through comparative advantage, while the indirect effect through competitive advantage is not significant. The real exchange rate has a negative and significant direct impact on coffee exports, indicating that exchange rate depreciation is associated with lower export volumes in the coffee sector, whereas its indirect effects through comparative and competitive advantages are not significant. Overall, the findings highlight the importance of jointly considering international capital flows, exchange rate movements and structural trade advantages when formulating policies to enhance coffee export performance in major producing countries.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Akbar Mandela A. Yunus
AU  - Munawar Ismail
AU  - Putu Mahardika Adi Saputra
AU  - Setyo Tri Wahyudi
PY  - 2026
DA  - 2026/06/20
TI  - Comparative and Competitive Advantages in Coffee Exports: Examining the Role of FDI and Exchange Rates
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 594
EP  - 605
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_41
DO  - 10.2991/978-94-6239-709-5_41
ID  - Yunus2026
ER  -