Abstract

We investigate the relationships between revealed comparative advantage of capital-intensive products and GDP per capita in China. With the two non-stationary sequence of global capital-intensive products exports, we constructed the error correction model with serial correlation, and found that revealed comparative advantage is a stable series by first difference while the GDP per capita is also first difference non-stationary data series. The revealed comparative advantage index are from 0.37 to 0.78, and revealed comparative advantage index and GDP per capita are with cointegrated. The result has showed that Chinese capital-intensive products maintained have not a competitive edge in world, especially it show a slight decline after the year of 2010.

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