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Comparative and Competitive Advantage

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  • Peter G. Warr

Abstract

This paper reviews the relevance of the concepts of comparative and competitive advantage for the developing countries of the Asian‐Pacific region. It argues that the competitive advantage supporters' attack on the comparative advantage concept rests partly on a misunderstanding of comparative advantage and partly on a false analogy–that between the determinants of the success of a single firm and the success of a nation. The central theme is that for a developing country, as for any other, while competitive advantage may be relevant for the performance of firms, comparative advantage remains as relevant as ever for the performance of the nation.

Suggested Citation

  • Peter G. Warr, 1994. "Comparative and Competitive Advantage," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 8(2), pages 1-14, November.
    • Handle: RePEc:bla:apacel:v:8:y:1994:i:2:p:1-14
    DOI: 10.1111/j.1467-8411.1994.tb00091.x
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    Cited by:

    1. J. Peter Neary, 2003. "Competitive versus Comparative Advantage," The World Economy, Wiley Blackwell, vol. 26(4), pages 457-470, April.
    2. Longmire, James L. & Moldashev, Altynbeck, 1999. "Changing Competitiveness of the Wheat Sector of Kazakhstan and Sources of Future Productivity Growth," Economics Working Papers 7686, CIMMYT: International Maize and Wheat Improvement Center.
    3. Lin, Justin Yifu, 2003. "Development Strategy, Viability, and Economic Convergence," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 276-308, January.
    4. Satya Dev Gupta, 2015. "Comparative Advantage and Competitive Advantage: An Economics Perspective and a Synthesis," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 1(1), pages 9-22, January.
    5. D. Vines, 1994. "Australian Trade Liberalisation, APEC, and the GATT," Economics Discussion / Working Papers 94-11, The University of Western Australia, Department of Economics.
    6. Kannapiran, Chinna A. & Fleming, Euan M., 1999. "Competitiveness And Comparative Advantage Of Tree Crop Smallholdings In Papua New Guinea," Working Papers 12911, University of New England, School of Economics.
    7. Louette, Dominique & Smale, Melinda, 1998. "Farmers' Seed Selection Practices and Maize Variety Characteristics in a Traditionally-Based Mexican Community," Economics Working Papers 7667, CIMMYT: International Maize and Wheat Improvement Center.
    8. Jared C. Carbone & Nicholas Rivers, 2014. "Climate policy and competitiveness: Policy guidance and quantitative evidence," Working Papers 2014-05, Colorado School of Mines, Division of Economics and Business.
    9. Mashabela, T.E. & Vink, Nick, 2008. "Competitive performance of global deciduous fruit supply chains: South Africa versus Chile," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(2), pages 1-18, June.
    10. T. A. Bhavani & Suresh Tendulkar, 2001. "Determinants of firm-level export performance: a case study of Indian textile garments and apparel industry," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(1), pages 65-92.
    11. Iheb FRIJA, 2008. "La compétitivité de l'industrie d'habillement tunisienne. Atouts et limites (The tunisian clothing industry competitiveness : assets and limits)," Working Papers 200, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    12. Xu, Xinpeng, 1999. "Do Stringent Environmental Regulations Reduce the International Competitiveness of Environmentally Sensitive Goods? A Global Perspective," World Development, Elsevier, vol. 27(7), pages 1215-1226, July.
    13. Lee, Chaehwa & Wilhelm, Wilbert, 2010. "On integrating theories of international economics in the strategic planning of global supply chains and facility location," International Journal of Production Economics, Elsevier, vol. 124(1), pages 225-240, March.
    14. Mosoma, K., 2004. "Agricultural competitiveness and supply chain integration: South Africa, Argentina and Australia," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(1), pages 1-13, March.
    15. Howard Davies & David Ko, 2006. "Up-grading and performance: the role of design, technology and business strategy in Hong Kong's electronics industry," Asia Pacific Journal of Management, Springer, vol. 23(3), pages 255-282, September.
    16. Xinpeng Xu, 1998. "Export Performance of Environmentally Sensitive Goods: A Global Perspective?," Asia Pacific Economic Papers 278, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    17. H.W. Arndt, 1998. "Globalisation," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 51(204), pages 73-89.
    18. Azzopardi, Ernest & Nash, Robert, 2013. "A critical evaluation of importance–performance analysis," Tourism Management, Elsevier, vol. 35(C), pages 222-233.
    19. Heather Smith, 1995. "Beyond Picking Winners? Recent Writings on Australia’s Industry Policy," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 2(4), pages 479-488.
    20. H.W. Arndt, 1998. "Globalisation," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 51(204), pages 73-89.
    21. T.A Bhavani & Suresh D. Tendulkar, 2000. "Determinants of Firm-level Export Performance: A Case Study of Indian Textile Garments and Apparel Industry," Working papers 81, Centre for Development Economics, Delhi School of Economics.
    22. Chen, Binkai & Lin, Justin Yifu, 2021. "Development strategy, resource misallocation and economic performance," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 612-634.

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