This project focuses on determining a suitable export destination and product for HS code 57, specifically woven carpets (HS 570232). The analysis includes evaluating various trade metrics and selecting the best product and export destination based on these metrics.
The approach involves:
- Product Selection: Using trade metrics like SHI, RHI, EPI, RCA, and PHI to identify HS 570232 as the optimal product.
- Export Destination Selection: Analyzing import growth values, BOT, and RHI to select Switzerland as the target export destination.
- SHI (Standardized Herfindahl Index): Measures export diversification across 6-digit codes for Chapter 57.
- RHI (Revealed Herfindahl Index): Indicates the concentration of export destinations.
- EPI (Export Propensity Index): Evaluates potential for future exports.
- RCA (Revealed Comparative Advantage): Identifies products with significant export potential.
- PHI (Product Herfindahl Index): Assesses market structure and competition level.
The analysis led to the selection of HS 570232 due to its high RCA value and positive trend. Switzerland was chosen as the export destination due to favorable trade metrics and higher import penetration.
The project includes comprehensive calculations for the following:
- Product Selection: RCA trends, PHI values, and other relevant trade metrics.
- Export Destination: Import growth, BOT analysis, RHI values, and TII calculations.
The insights derived from this project can guide startups in the carpet industry to strategically enter new markets and optimize their export strategies.