Research on the International Competitiveness of Hunan Tobacco

Hunan is a major tobacco export province in China. This paper focuses on the international competitiveness of Hunan tobacco. Firstly, we evaluate its competitiveness in achievement by using CMS model and index of RCA, and find that Hunan tobacco had comparatively strong international competitiveness. But compared with the other main exporting commodities, its international competitiveness presented a downward tendency. Then, its competitiveness in strength is analyzed from the angle of the ratio of export and import price, and the conclusion is that the international competitiveness of Hunan tobacco mostly came from the low price. Further, we discuss its competitiveness in potential based on the diamond model of Michael Porter, and find that Hunan tobacco had certain comparative advantages in soil, labor force, related & supporting industries and domestic demand, but at a disadvantage in policies and technologies. At last, this paper supplies some crucial methods to improve and preserve the competitiveness of Hunan tobacco.