On the competitiveness of Mexico's dry chili production

Abstract

Mexico has become the sixth-largest dry chili exporter in the world and the largest chili (Capsicum annuum L) exporter, showing not only its production capacity but also giving it a decisive advantage over its main competitors. The aim of this paper is to describe the competitive structure and dynamics of chili exportations in Mexico over the period 1993- 2008. In order to compare the export growth performance with the performance of similar exporter countries, we look at the behavior of the Revealed Export Advantage index and the Constant Market Share Analysis. For all countries included in the analysis, the study considers the U.S as the objective market due to the current dry chili export market participation. The result suggests that Mexico occupies an important place in the global production but not a leadership place in exportations of dry chili at worldwide level.