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Structural Changes In International Trade: Inter-Industry Shifts In Comparative Advantage

  • BURNETE Sorin

    (Lucian Blaga University of Sibiu, Romania)

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    The contemporary industrial configuration centered on intra-firm trade and cross border commodity chains has made comparative advantage look like a rusty concept. Prior to globalization, shifts in comparative advantage would occur mainly across industries, causing clear-cut changes in countries’ specialization patterns. By contrast, when factors of production are allowed to move freely across national boundaries, the picture gets somewhat fuzzy: the comparative advantage concept requires a different approach that should take into account the increasing disintegration of production processes and spreading of economic activities across the globe. Due to their relatively high mobility and propensity for outsourcing, labor-intensive industries visibly epitomize this process, which is going on in many parts of the world, including Central and Eastern Europe.

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    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/714burnete.pdf
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    Article provided by Lucian Blaga University of Sibiu, Faculty of Economic Sciences in its journal Studies in Business and Economics.

    Volume (Year): 7 (2012)
    Issue (Month): 1 (April)
    Pages: 40-48

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    Handle: RePEc:blg:journl:v:7:y:2012:i:1:p:40-49
    Contact details of provider: Postal: Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania
    Phone: 004 0269 210375
    Fax: 004 0269 210375
    Web page: http://economice.ulbsibiu.ro/
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