A Study on the Export Competitiveness of the USA to China in IT Industry

Abstract

Purpose - The purpose of this paper is to analyze the trade structure and competitiveness of the United States information technology (IT) industry in comparison to that of China. Design/methodology/approach - Indices such as trade specialization index (TSI), Revealed Comparative Advantage (RCA), and the export growth rate are used. Further, this study analyze the trade competitiveness of the United States by using a newly adjusted methodology. Findings - The result showed that the USA IT industry’s export competitiveness to China weakened in 2016 compared to 2001. resulting in a reduction in overall export competitiveness. broadcasting apparatus, parts, information apparatus, and communication apparatus. Specifically, the competitiveness of passive components and electromechanical components of broadcasting apparatus, semiconductors and flat display and sensor for parts has been weakened. Research implications or Originality - Most studies aggregate analyses of export competitiveness using methodologies such as TSI, RCA, and market share. However, this method of analysis often results in different results if the competitiveness of an industry is disaggregated and analyzed by item. Therefore, this study analyze the trade competitiveness of the United States by using a newly adjusted methodology. The results show that the academic and policy implications of these changes in the IT industry will be a useful resource.