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Comparative Advantage and Trade Specialization of East Asian Countries: Do East Asian Countries Specialize on Product Groups with High Comparative Advantage?

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  • Eva Ervani
  • Tri Widodo
  • Muhammad Edhie Purnawan

Abstract

This paper analyzes whether East Asian countries (Indonesia, China, Japan, Hong Kong, South Korea, and Singapore) specialize on product groups with high comparative advantage. We use the data on the 3-digit SITC Revision 2 for 237 product groups published by the UN-COMTRADE. Firstly, we calculate the Revealed Symmetric Comparative Advantage (RSCA) index to know the product groups with high comparative advantage from each the East Asian countries. Secondly, we calculate the export share to know the trade specialization of product groups from each the East Asian countries. Thirdly, we compare between the product groups included in top-twenty SITC of comparative advantage with top-twenty SITC of trade specialization from each the East Asian countries. This paper concludes that throughout the study periods of 1995, 2005, and 2015, East Asian countries (Indonesia, China, Japan, Hong Kong, South Korea, and Singapore) specialize on product groups with low comparative advantage. It was also found that product classification dominating the comparative advantage and trade specialization of East Asian countries was the technology intensive products classification.

Suggested Citation

  • Eva Ervani & Tri Widodo & Muhammad Edhie Purnawan, 2019. "Comparative Advantage and Trade Specialization of East Asian Countries: Do East Asian Countries Specialize on Product Groups with High Comparative Advantage?," International Business Research, Canadian Center of Science and Education, vol. 12(2), pages 113-134, February.
    • Handle: RePEc:ibn:ibrjnl:v:12:y:2019:i:2:p:113-134
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    Cited by:

    1. Krisiukėnienė Deimantė & Pilinkienė Vaida, 2020. "Export Competitiveness Analysis of Creative Industries in the European Union," Economics and Culture, Sciendo, vol. 17(1), pages 28-37, June.

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    More about this item

    Keywords

    comparative advantage; export share; RSCA; trade specialization;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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