Competitiveness of brazilian products in international trade: an analysis based on the revealed comparative advantage index

Abstract

The objective of this study is to assess Brazil’s competitiveness in international trade through the Revealed Comparative Advantage Index (RCA), considering its main trading partners — the United States, China, Argentina, and three countries of the European Union. The research uses data from Secex, MDIC, and the IMF, combining comparative advantage theory with the gravity model of trade to examine the relationship between economic size, distance, and the intensity of bilateral flows. The results show that Brazil maintains a strong comparative advantage in agricultural and mineral commodities, especially soybeans, coffee, oil, and iron ore, which account for most exports to Asian and European markets. In contrast, manufacturing sectors such as the automotive industry display limited competitiveness, although they remain relevant regionally, particularly in trade with Argentina. The joint analysis of the RCA and the gravity model highlights Brazil’s structural dependence on primary goods and the constraints on expanding exports of higher value-added products. The study concludes that Brazil requires industrial, technological, and logistical policies to promote export diversification and strengthen its integration into more complex global value chains.