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The Leap of Comparative Advantage Trap in Guangzhou-Based on the Perspective of Global Value Chain

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  • Ji Yan Wu
  • Zi Jian Luo
  • Zhi Huang Huang

Abstract

This paper analyzes the situation and reasons of the trap of comparative advantage in Guangzhou, and proposes some strategies on how to leap the trap of comparative advantage. Firstly, based on the perspective of global value chain, this paper analyzes the status of Guangzhou in the global value chain through RCA (revealed comparative advantage index) and RTV (revealed technology added value index), and illustrates the situation of Guangzhou in the trap of comparative advantage. Secondly, the reasons why Guangzhou is into comparative advantage trap are analyzed from three aspects, capital, labor force and technology. Thirdly, in view of the main reasons, we seek some effective strategies to leap the comparative advantage trap, promote the transformation and upgrading of enterprises in guangzhou into innovative enterprises, and lead to the promotion of the competitiveness of Guangzhou in the globalization division of labor.

Suggested Citation

  • Ji Yan Wu & Zi Jian Luo & Zhi Huang Huang, 2019. "The Leap of Comparative Advantage Trap in Guangzhou-Based on the Perspective of Global Value Chain," Applied Economics and Finance, Redfame publishing, vol. 6(1), pages 74-83, January.
    • Handle: RePEc:rfa:aefjnl:v:6:y:2019:i:1:p:74-83
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    References listed on IDEAS

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    2. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
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