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Comparative Advantage Structure of U.S. International Services

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  • Makoto Hisanaga

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    (Institute of Economic Research, Kyoto University)

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    Abstract

    This paper is an investigation of the comparative advantage structure of United States (U.S.) international trade in services. It appears conclusively that the U.S. has a strong comparative advantage in knowledge-based services. For this study, the author adopts the Revealed Comparative Advantage (RCA) index to analyze the structure, and demonstrates that the variances in the RCA deviations indicate a similarity in the export structure between the U.S. and the world. The focus of this study is also on the role of the multinational companies. This view links microeconomic entities and the macroeconomic surroundings.

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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP633.pdf
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    Bibliographic Info

    Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 633.

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    Length: 20pages
    Date of creation: Jun 2007
    Date of revision:
    Handle: RePEc:kyo:wpaper:633

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    Related research

    Keywords: Trade in Services; Intellectual Property Rights; Comparative Advantage; Competitive Advantage; Revealed Comparative Advantage (RCA); Multinational Companies; Offshoring;

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    1. Onitsuka, Yusuke, 1974. "International Capital Movements and the Patterns of Economic Growth," American Economic Review, American Economic Association, vol. 64(1), pages 24-36, March.
    2. Harms, Philipp & Mattoo, Aaditya & Schuknecht, Ludger, 2003. "Explaining liberalization commitments in financial services trade," Policy Research Working Paper Series 2999, The World Bank.
    3. Proudman, James & Redding, Stephen, 2000. "Evolving Patterns of International Trade," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 373-96, August.
    4. Peter Nunnenkamp & Julius Spatz, 2004. "Intellectual property rights and foreign direct investment: A disaggregated analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(3), pages 393-414, September.
    5. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 1-35, March.
    6. Langhammer, Rolf J., 2004. "Revealed comparative advantages in the services trade of the United States, the European Union and Japan : what do they tell us?," Open Access Publications from Kiel Institute for the World Economy 3429, Kiel Institute for the World Economy (IfW).
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