IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/85259.html
   My bibliography  Save this paper

East Asia’s Pattern of Export Specialization: Does Indonesia Compete with Japan, China, Hong Kong, Korea and Singapore?

Author

Listed:
  • Ervani, Eva
  • Widodo, Tri
  • M. Purnawan, Edhie

Abstract

The purpose of this paper is to analyze the comparative advantage of East Asian countries (China, Japan, Hong Kong, South Korea, Singapore and Indonesia) and to investigate whether Indonesia is competing in the similar groups of products - based on the 3-digit SITC Revision 2 for 237 groups of products published by the UN-COMTRADE. First, we calculate the Revealed Symmetric Comparative Advantage (RSCA) index to know the pattern of comparative advantage for each the East Asian countries. Second, we calculate the distribution of RSCA (value of mean, median, standard deviation and skewness of comparative advantage) from each the East Asian countries to analyze the dynamics of comparative advantage. Third, we examine the correlation of Indonesia’s RSCA with the RSCA of each the East Asian countries for the period 1995-2015 to determine whether Indonesia has a similar pattern of specialization and whether competing in the same product market with the East Asian countries. The result of the analysis shows that China is the biggest competitor for Indonesia, and Japan has very different patterns of specialization.

Suggested Citation

  • Ervani, Eva & Widodo, Tri & M. Purnawan, Edhie, 2018. "East Asia’s Pattern of Export Specialization: Does Indonesia Compete with Japan, China, Hong Kong, Korea and Singapore?," MPRA Paper 85259, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:85259
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/85259/1/MPRA_paper_85259.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Amador, João & Cabral, Sónia, 2009. "Vertical specialization across the world: A relative measure," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 267-280, December.
    2. Bahri Yilmaz, 2005. "The Foreign Trade Pattern and Foreign Trade Specialization in the European Union: A Comparison of Six New Member/Candidate Countries and the EU/15," Eastern European Economics, Taylor & Francis Journals, vol. 43(5), pages 74-100, October.
    3. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    4. Imre FertŠ& Karoly Attila Soós, 2008. "Trade Specialization in the European Union and in Postcommunist European Countries," Eastern European Economics, Taylor & Francis Journals, vol. 46(3), pages 5-28, May.
    5. Daniel Lederman & Marcelo Olarreaga & Eliana Rubiano, 2008. "Trade Specialization in Latin America: The Impact of China and India," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 248-271, July.
    6. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank.
    7. Ballance, Robert H & Forstner, Helmut & Murray, Tracy, 1987. "Consistency Tests of Alternative Measures of Comparative Advantage," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 157-161, February.
    8. Prema-chandra Athukorala, 2005. "Product Fragmentation and Trade Patterns in East Asia," Asian Economic Papers, MIT Press, vol. 4(3), pages 1-27, Fall.
    9. Keld Laursen, 1998. "Revealed Comparative Advantage and the Alternatives as Measures of International Specialisation," DRUID Working Papers 98-30, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    10. Widodo, Tri, 2009. "Dynamic Comparative Advantages in the ASEAN+3," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 24, pages 505-529.
    11. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 265-280, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Widodo, Tri, 2007. "“Flying Geese” Paradigm: Review, Analytical Tool and Application," MPRA Paper 78218, University Library of Munich, Germany.
    2. 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.
    3. Tri WIDODO, 2009. "Comparative Advantage: Theory, Empirical Measures And Case Studies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 4, pages 57-82, November.
    4. Lee, Jim, 2011. "Export specialization and economic growth around the world," Economic Systems, Elsevier, vol. 35(1), pages 45-63, March.
    5. Depetris Guiguet, Edith & García Arancibia, Rodrigo & Rossini, Gustavo, 2010. "Consistencia de indicadores de especialización en el comercio internacional. Aplicación al caso de la mantequilla en Argentina y Uruguay = Consistency of Specialization Indicators. An Application to A," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 9(1), pages 85-105, June.
    6. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    7. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    8. Cole, Matthew A. & Elliott, Robert J.R. & Shimamoto, Kenichi, 2005. "Why the grass is not always greener: the competing effects of environmental regulations and factor intensities on US specialization," Ecological Economics, Elsevier, vol. 54(1), pages 95-109, July.
    9. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs Integration into Regional Production Networks. Trade Effects of EU-Accession," Proceedings of the German Development Economics Conference, Berlin 2011 55, Verein für Socialpolitik, Research Committee Development Economics.
    10. Rahul Sen & Sadhana Srivastava, 2012. "Asia' s international production networks: Will India be the next assembly centre?," Working Papers 11812, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    11. Dirk WILLENBOCKEL & Sherman ROBINSON, "undated". "The Global Financial Crisis, LDC Exports and Welfare: Analysis with a World Trade Model," EcoMod2009 21500092, EcoMod.
    12. Kaveri Deb & Bodhisattva Sengupta, 2017. "On Empirical Distribution of RCA Indices," IIM Kozhikode Society & Management Review, , vol. 6(1), pages 23-41, January.
    13. Andrey A. Gnidchenko & Vladimir A. Salnikov, 2015. "Net Comparative Advantage Index: Overcoming the Drawbacks of the Existing Indices," HSE Working papers WP BRP 119/EC/2015, National Research University Higher School of Economics.
    14. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs integration into regional and global production networks," University of Göttingen Working Papers in Economics 125, University of Goettingen, Department of Economics.
    15. Gordeev, Roman, 2020. "Comparative advantages of Russian forest products on the global market," Forest Policy and Economics, Elsevier, vol. 119(C).
    16. Amador, João & Cabral, Sónia, 2014. "Global value chains: surveying drivers and measures," Working Paper Series 1739, European Central Bank.
    17. Singh, Nirvikar & Mora, Jesse & Carolan, Terrie, 2012. "Trade Dynamics in the East Asian Miracle: A Time Series Analysis of U.S.-East Asia Commodity Trade, 1962-1992," Santa Cruz Department of Economics, Working Paper Series qt0fm1r83r, Department of Economics, UC Santa Cruz.
    18. Fukunari Kimura & Ayako Obashi, 2016. "Production Networks in East Asia: What We Know So Far," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 33-64, Springer.
    19. M A Cole & R J R Elliott & K Shimamoto, 2003. "US Specialization in Pollution-Intensive Industries: Factor Intensities versus Environmental Regulations," Economics Discussion Paper Series 0321, Economics, The University of Manchester.
    20. Viet V. Hoang, 2019. "Investigating the evolution of agricultural trade specialization in transition economies: A case study from Vietnam," The International Trade Journal, Taylor & Francis Journals, vol. 33(4), pages 361-378, July.

    More about this item

    Keywords

    RSCA; Distribution of RSCA; RSCA Correlation; Specialization Pattern;
    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:85259. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.