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Dynamic Comparative Advantage of the Asean Countries

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  • khalifah, noor

    (Jabatan Analisis Ekonomi & Dasar Awam Fakulti Ekonomi Universiti Kebangsaan Malaysia Bangi, Selangor)

Abstract

This paper examines revealed comparative advantage of the ASEAN countries for the period 1985-1990. Two indices were used simultaneously to evaluate comparative advantage: the world-export share index and the export-import ratio. The results show that Malaysia and Indonesia possess comparative advantage in primary products. Thailand’s comparative advantage in the crops and animal product group is foremost (though declining) followed by Malaysia, Indonesia and Phillipines. In the manufacture of labour intensive goods, Thailand and Phillipines are at comparative advantage with Indonesia acquiring comparative advantage in 1990. None of theASEAN countries possess comparative advantage in the moderately and highly capital and skill intensive manufactured goods category although Singapore is least disadvantaged. In order for Malaysia to remain competitive and acquire competitiveness in new sectors, the known strategies for success must be intensified and “new†strategies must be found to stay ahead.

Suggested Citation

  • khalifah, noor, 1995. "Dynamic Comparative Advantage of the Asean Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 29, pages 131-159.
    • Handle: RePEc:ukm:jlekon:v:29:y:1995:i::p:131-159
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    1. Ballance, Robert H & Forstner, Helmut & Murray, Tracy, 1987. "Consistency Tests of Alternative Measures of Comparative Advantage," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 157-161, February.
    2. Balassa, Bela, 1977. "'Revealed' Comparative Advantage Revisited: An Analysis of Relative Export Shares of the Industrial Countries, 1953-1971," The Manchester School of Economic & Social Studies, University of Manchester, vol. 45(4), pages 327-344, December.
    3. Juergen Donges & James Riedel, 1977. "The expansion of manufactured exports in developing countries: An empirical assessment of s upply and demand issues," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 113(1), pages 58-87, March.
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