Analysis of the normalized revealed comparative advantage index for mezcal, tequila, and rum in Mexico: Comparative advantage of beverages in Mexico

Abstract

This research analyzed the dynamics of the pattern of comparative advantages for a group of three alcoholic beverages (mezcal, tequila, and rum) that Mexico exported to the United States market. Secondary information on exports was used to construct the Normalized Revealed Comparative Advantage Index to show the distilled products' comparative advantage and productive competitiveness of these three distilled products. The results showed that Mexico has international competitiveness for mezcal and tequila, the value of the comparative advantage index was greater than zero in the period 1994-2020, and it also has an increasing trend in the long term. In contrast, rum showed a negative (non-competitive) value in the comparative advantage indexfrmmn 2005-2020. It is concluded that mezcal and tequila are competitive in the international market, while rum has lost that competitiveness. The tequila industry is increasingly consolidated and better promoted in international markets.