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Comparative Advantage Structure of U.S. International Services

Author

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  • Makoto Hisanaga

    () (Institute of Economic Research, Kyoto University)

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.

Suggested Citation

  • Makoto Hisanaga, 2007. "Comparative Advantage Structure of U.S. International Services," KIER Working Papers 633, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:633
    as

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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP633.pdf
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    References listed on IDEAS

    as
    1. Proudman, James & Redding, Stephen, 2000. "Evolving Patterns of International Trade," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 373-396, August.
    2. Philipp Harms & Aaditya Mattoo & Ludger Schuknecht, 2003. "Explaining liberalization commitments in financial services trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(1), pages 82-113, March.
    3. 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.
    4. Peter Nunnenkamp & Julius Spatz, 2004. "Intellectual property rights and foreign direct investment: A disaggregated analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(3), pages 393-414, September.
    5. 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).
    6. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 1-35, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • F01 - International Economics - - General - - - Global Outlook
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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