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The Changing Trade and Revealed Comparative Advantages of Asian and Latin American Manufacture Exports

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Author Info
Siegfried Bender
Kui-Wai Li
Abstract

Changes in comparative advantage should reflect changes in factor endowment, but increasingly, changes in trade policies also affect a region's trade performance. Based on the arguments in Balassa's stages of comparative advantage thesis, this paper looks at the performance of manufacture exports in a number of Asian and Latin American economies over the period 1981-1997 and examines the revealed comparative advantage indices between economies in East Asia, Southeast Asia and Latin America. Although the RCA measurement may not distinguish between the factor endowment effects from the trade policy effect, we argue that RCA measures provide indication on the movement in a region's comparative advantage. The evidence strongly suggests that despite the strong export performance experienced by East Asian economies, they are losing their comparative advantage to the lower-tier economies in Southeast Asia and Latin America.

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Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 843.

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Length: 24 pages
Date of creation: Mar 2002
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Handle: RePEc:egc:wpaper:843

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Related research
Keywords: International Trade; Revealed Comparative Advantage; Manufacture Exports;

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

References listed on IDEAS
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  1. Balassa, Bela, 1979. "The Changing Pattern of Comparative Advantage in Manufactured Goods," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 259-66, May. [Downloadable!] (restricted)
  2. Young Lee, 1986. "Changing export patterns in Korea, Taiwan and Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 122(1), pages 150-163, March. [Downloadable!] (restricted)
  3. Balassa, Bela, 1986. "Comparative Advantage in Manufactured Goods: A Reappraisal," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 315-19, May. [Downloadable!] (restricted)
  4. Amable, Bruno, 2000. "International specialisation and growth," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 413-431, December. [Downloadable!] (restricted)
  5. Carolan, Terrie & Singh, Nirvikar & Talati, Cyrus, 1998. "The composition of U.S.-East Asia trade and changing comparative advantage," Journal of Development Economics, Elsevier, vol. 57(2), pages 361-389. [Downloadable!] (restricted)
  6. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Andrea Zaghini, 2005. "Evolution of trade patterns in the new EU member states," Temi di discussione (Economic working papers) 568, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
  2. Jooste, A. & Bahta, S.T., 2005. "The effect of internationalisation on the beef and maize sub-sectors: The relevance of revealed comparative advantage measures," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), December. [Downloadable!]
  3. Andrea Zaghini, 2003. "Trade advantages and specialisation dynamics in acceding countries," Working Paper Series 249, European Central Bank. [Downloadable!]
  4. Escaith, Hubert, 2007. "Old and new dualisms in Latin America and Asia: labour productivity, international competitiveness and income distribution," MPRA Paper 14510, University Library of Munich, Germany, revised 2008. [Downloadable!]
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