Changes In Comparative Advantage Research Articles

기후변화에 대한 대응에 있어서 무역의 역할과 정책적 시사점

This paper analyzes the impact of climate change on trade through changes in productivity, logistics networks, trade costs, and comparative advantage through a literature review, and then examines the role of trade in responding to climate change and examines policy implications. The expansion of trade allows access to key goods and services such as food and health, as well as the technologies necessary to minimize the negative impacts of climate change, reduce the negative impacts of climate change, and respond appropriately to changes in comparative advantage. Each country should implement comprehensive climate change response measures, such as strengthening its logistics networks, diversifying production, suppliers and customers, and investing in long-term human capital. At the same time, it is necessary to help low-income developing countries respond to climate change and enhance the resilience of the world economy to climate change through cooperation between countries in trade and climate change response policies.

Revealed comparative advantages and trade balance indicators of trade structure of V4 countries

The paper aims to inspect trade structure and changes in comparative advantages of the Czech Republic, Hungary, Poland, and Slovakia on the intra-EU28 market for the period 2009-2019. The categorisation of the products corresponds to the Statistical classification of products by activity (CPA). This paper exploits the modified index of revealed comparative advantages-the revealed symmetric comparative advantages (RSCA) and the trade balance index (TBI). Econometric models using the RSCA were applied for testing stability and specialisation trends of a country's trade. The results show that the Czech Republic and Hungary had the biggest changes in comparative advantages in 2009-2011, Poland and Slovakia in 2011-2015. The findings indicate space for increasing export performance and specialisation of these V4 countries on the intra-EU market in the short and long-run.

Migration and comparative advantages: new evidence on the EU-MENA region

PurposeThis study aims to consider how migrants may act as channel of diffusion of knowledge which contributes to the dynamics of trade and comparative advantages of EU and MENA countries for the period 1990–2015.Design/methodology/approachAdopting an IV approach and a gravity framework to instrument for migration, the authors document how variations in stocks of migrants coming from (in) countries that are already competitive exporters of a given product impact on the probability that the destination (home) country starts to export competitively new products or succeed in exporting more intensively.FindingsControlling for potential confounding factors which can be correlated to knowledge flows and productivity shifts, the authors find trade-promoting effects via migration flows (mostly immigration) between the two areas, testing our hypotheses by different technology classes of products and different specifications.Originality/valueThe contribution of this work to the literature is threefold. First, by providing evidence on international knowledge diffusion induced by migration flows between MENA and EU regions, like no other work before, the authors document the effects of migration on trade and comparative advantages. Second, unlike standard literature on migration-trade link, the authors focus more on long-term structural changes in comparative advantages than on trade volumes. Third, we exploit how the effect of migration on margins of trade varies according to different types of goods, classified by technological level.

FACTORS PROPORTION IN TRADE PATTERN AND INTERNATIONAL CAPITAL FLOWS INTERACTION IN ASEAN+4 COUNTRIES

The classic thesis by Mundell, with the modification of Heckscher-Ohlin model, stated that a substitution relation flows between trade and international capital. Mundell showed that the equilibrium price of a commodity can be obtained through international factor mobility in the absence of trade in goods or vice versa, if the trade barriers of the factor price equilibrium are eliminated. Therefore, the factor price equalization will be achieved without requiring the exchange of goods between countries. Consequently, the study of international trading and capital flows is more frequently studied separately. However, empirical data have shown the contradictory phenomena in which both of them are interrelated and complementary, but how the two interact is still relatively rarely observed.Some constructions of new theories indicate that interactions between them can be studied through several channels; one of them is through the change in comparative advantage. This paper tries to analyze the interaction between trade and international capital flows in ASEAN countries + 4 (ASEAN plus India, China, Japan, and Korea). The countries included in this group are important players in international trading and represent the world's largest trading integration. The interaction between trade and international capital flows is linked via change of trading structure, as seen from the intensity of the use of production factors in the industry in each country. The results of the study are consistent with the theory that capital will flow to countries that have a capital-intensive industrial structure. This then leads to an increase in the deficit in the country?s current account balance.

Doğrudan Yabancı Yatırım Girişlerinde Açıklanmış Karşılaştırmalı Üstünlük Analizi

Rekabet gücü yüksek olan sektörleri belirlemek için Balassa endeksi olarak da bilinen açıklanmış karşılaştırmalı üstünlük (RCA) endeksi kullanılmaktadır. Bu endeksten hareketle doğrudan yabancı yatırım çekmek üzere hedef sektörleri belirlemek veya doğrudan yabancı yatırım için konumların karşılaştırmalı üstünlüğünü analiz etmek için kullanılacak bir yöntem olarak doğrudan yabancı yatırımda açıklanmış karşılaştırmalı üstünlük endeksi Loewendahl ve Barklie (2018) tarafından geliştirilmiştir. Bu çalışmada Türkiye’nin ve OECD ülkelerinin doğrudan yabancı yatırımlardaki açıklanmış karşılaştırmalı üstünlüklerinin sektörel olarak belirlenmesi amaçlanmıştır. Bu amaçla Loewendahl ve Barklie (2018) tarafından geliştirilen endeksi kullanılmıştır. Türkiye’nin doğrudan yabancı yatırımlarda açıklanmış karşılaştırmalı üstünlüğe sahip olduğu sektörler belirlenmiştir. RCA-FDI endeksi değerleri 2013 ve 2017 yılları için ayrı ayrı hesaplanmış ve Türkiye’nin doğrudan yabancı yatırımlardaki açıklanmış karşılaştırmalı üstünlüklerindeki değişim açıklanmıştır. Ayrıca OECD ülkeleri için temel ekonomik faaliyet alanlarında endeksi hesaplanmıştır. Türkiye için hesaplanan endeksi değerlerine göre ana faaliyet alanları içerisinde “tarım, ormancılık ve balıkçılık” sektöründe güçlü karşılaştırmalı üstünlük, “imalat” sektöründe zayıf karşılaştırmalı üstünlük, “elektrik, gaz, buhar ve iklimlendirme temini”nde güçlü karşılaştırmalı üstünlük, “su tedariki, kanalizasyon, atık yönetimi ve iyileştirme faaliyetleri”nde zayıf karşılaştırmalı üstünlük, “inşaat”ta zayıf karşılaştırmalı üstünlük ortaya çıkmıştır. Bununla birlikte “hizmetler” sektöründe ise rekabet avantajı bulunmamaktadır. Türkiye’nin en güçlü karşılaştırmalı üstünlüğünün olduğu sektörler “kütüphaneler, arşivler, müzeler ve diğer kültürel faaliyetler” ve “kara taşımacılığı ve boru hatları taşımacılığı”dır. OECD ülkelerinde güçlü karşılaştırmalı üstünlüğe sahip olan ülke sayısının en fazla olduğu sektör “tarım, ormancılık ve balıkçılık”tır. Karşılaştırmalı dezavantaja sahip olan ülke sayısının en fazla olduğu sektör ise “madencilik ve taşocakçılığı”dır. “İmalat” sektöründe ise hiçbir ülke güçlü ve orta karşılaştırmalı üstünlüğe sahip bulunmamaktadır.

Changes in comparative advantages of the Polish food sector in world trade

Research background: The period after Poland's accession to the European Union is a period of systematic development of Polish foreign trade in food products. Positive changes were visible already in the first year, but trade turnover and the balance of food exchange were even more dynamic in the subsequent years of Poland's membership in the EU.
 Purpose of the article: One way to assess the competitiveness of Polish food sector is the analysis of comparative advantages (relative) in the trade of products of this sector. So the aim of the presented research is to assess the comparative ad-vantages of the Polish food sector (including its most important chapters).
 Methods: The analysis of comparative advantages was based on relative trade advantage index (RTA) and the Lafay trade balance index (TBI). The analyses cover the years 2004?2017. The data source was the WITS-Comtrade trading database, in which trade flows are expressed in USD. The analysis was carried out at the HS chapter level.
 Findings & Value added: The analysis of comparative advantages in the Polish trade in food products showed that during the membership in the European Union Poland had relative comparative advantages in the food trade on the world market. In the years 2004?2017 Polish export in agri-food products increased more than 4.5 times and the positive balance of trade in these products increased more than 9.0 times. Products in trade of which Poland had comparative advantages in 2017 accounted for 55.5% of trade of the Polish agri-food sector in the global market, i.e. by 12.8% more than in the year of accession of Poland to the EU. The dynamic development of trade in food products after Poland's accession to the EU, as well as significant comparative advantages in trade in these products, testify to the competitiveness and high importance of the Polish food sector for the national economy.

The Dynamics of Changing Comparative Advantage in ASEAN-4: Flying Geese Model

Globalization makes all the economic activities of the country becomes more open. Trade openness leads to increasingly fierce competition conditions and then raises a competitiveness. This competitiveness is the key for each country to develop products to be exported. Competitiveness is one of the criteria that determine the success of a country in international trade. This study aims to analyze the dynamics of changes in comparative advantages occurring in ASEAN-4 countries (Indonesia, Philippines, Malaysia and Thailand) in 1989 to 2016 using Product Mapping method which combines calculations between RSCA and TBI in each product classification. The results show that each country has different comparative advantages, including Indonesia which has a comparative advantage for unskilled-labor product classification (TPT and garment) and on primary product (oil and its derivative products) and is the leader for both products. Then the Philippines has a comparative advantage for the classification of technology intensive products (electronics) which is also a leader in the product. In addition, the results of research also found a change in comparative advantage as well as product specialization, including Thailand which no longer has a comparative advantage on human-capital intensive products (rubber and derivative products) but still a net-exporter. So it is with Indonesia who no longer has a comparative advantage on natural-resource products (lead) but still a net-exporter.

ESTIMATING THE IMPACTS OF CHANGES IN R&D AND FDI ON THE CHANGES IN COMPARATIVE ADVANTAGE: THE CASE OF ASEAN­5 MANUFACTURING EXPORTS 1991–2013

Abstract
 There are extensive studies available identifying the determinants of comparative advantage including in the ASEAN­5 countries. However, knowing only the determinants of comparative advantage is not sufficient as the determinants of changes in comparative advantage also need to be identified. Different or similar drivers may be involved in the changes in comparative advantage. From the perspective of changes in comparative advantage, further insights can be obtained since it is largely ignored in the previous studies. This paper analyses the changes of comparative advantage on ASEAN­5 manufacturing exports over the period from 1991 to 2013 using Revealed Symmetric Comparative Advantage (RSCA) index for manufacturing export commodities at the three-digit level of the Standard International Trade Classification (SITC). There are 215 commodities covering all the ASEAN­5’ manufactured goods. Results revealed significant effects of changes R&D and FDI on the changes of comparative advantage in the ASEAN­5. It was shown that R&D and FDI are important in increasing the comparative advantage of manufacturing commodities. These findings incur important policy implications that include helping the identification of product specialisation for enhancing competitiveness and promoting economic growth.

THE DRIVERS OF STRUCTURAL CHANGE

AbstractThe main goal of this paper is to provide an integrated survey of the literature devoted to identifying the drivers of structural change, broadly defined as the process of reallocation of economic activity across the three broad sectors agriculture, manufacturing and services. Using the GGDC 10‐Sector Database, this paper first presents the empirical facts associated with structural change in different regions of the world – that is Europe and the USA, Asia, Latin America, and Africa – then reviews four determinants of structural change: (i) changes in income, (ii) changes in relative (sectoral) prices, (iii) changes in input–output linkages and (iv) changes in comparative advantage(s) via globalization and trade.

Output, Trade and Development: A Comparative Advantage Perspective

The paper examines the causal relationship between economic performance, trade and development variables, with special reference to comparative advantage as a trade variable. We develop a comparative advantage factor to assess the influence of comparative advantage, the change in comparative advantage, and the influence of it on output for the set of economies considered. The results emphasize the need for investments in technology by developing economies like India, and the need to invest in financial development through technology, in order to have more comprehensive investment policies.

The Rise of China and Regional Integration in East Asia

Over the past decades, East Asia has achieved one of the most profound economic transformations in recorded history, and has become the most dynamic economic region and one of the most integrated areas in the world. However, regional and economic integration in East Asia is a relatively new phenomenon and cooperation is lightly institutionalized (ADB, 2008). Largely reflecting the diversity of the economies, the East Asian regionalism follows a markedly different pattern from that in Europe and other regions. In the absence of a formal institutional framework, the regional integration in East Asia has been driven by market forces and by the development of increasingly sophisticated production sharing and intra‐regional network trade, in which China's rapid growth has been instrumental. It is the international firms that are creating linkages across borders in their search for profitable opportunities through trade, foreign direct investment (FDI), and other arrangements in accordance with changes in comparative advantage, industrial upgrading, and unilateral liberalization of goods and capital markets in the region (Dobson, 1997; Zhang, 2003; De Grauwe and Zhang, 2012). Policies such as preferential trading arrangements have traditionally not played much of a role in the integration of the region.

International spillover and rebound effects from increased energy efficiency in Germany

The pollution/energy leakage literature raises the concern that policies implemented in one country, such as a carbon tax or tight energy restrictions, might simply result in the reallocation of energy use to other countries. This paper addresses these concerns in the context of policies to increase energy efficiency, rather than direct action to reduce energy use. Using a global CGE simulation model, we extend the analyses of ‘economy-wide’ rebound from the national focus of previous studies to incorporate international spill-over effects from trade in goods and services. Our focus is to investigate whether these effects have the potential to increase or reduce the overall (global) rebound of local energy efficiency improvements. In the case we consider, increased energy efficiency in German production generates changes in comparative advantage that produce negative leakage effects, thereby actually rendering global rebound less than national rebound.

BILATERAL COMPARATIVE ADVANTAGES: INDONESIA AND MALAYSIA CASE

This study tried to look more closely at market integration, through export prices channel, in Indonesia and Malaysia. Several previous studies tend to reject the existence of law of one (LOP). The law of one (LOP) states that a given product should be the in different parts of the world if valued in common currency. However, empirical studies uniformly shows LOP does not describe most markets. Some important factors that are considered instrumental in this regard are transportation costs and stickiness. However, there is one characteristic that is often overlooked in the discussion of LOP, namely changes in comparative advantage. The specific objective of this paper is to look at comparative advantage correlation between the two countries and their effect on convergence. Correlation of both selected commodities – using the rank spearman's test - indicates the nature of the mutual substitution of products that carry the possibility of price competition so that the point to converge to one another. Tests on the export of some selected products in both countries indicated the occurrence of convergence, seen from the two analytical techniques: σ convergence and co-integration using Johansen's test. This conclusion is generated by attempted to control the identical assumption is to examines prices for similar products (homogeneous) using SITC 3-digit, which is produced from the same or close locations, with the export destination to the trading partner

Structural Changes in Comparative Advantages of the BRICS

This article discusses the structural changes that have taken place in the five emerging markets forming the BRICS grouping during the last two decades. The comparative advantages or disadvantages of the five economies are identified using revealed symmetric comparative advantage index. The long-run shifts in the comparative advantages and disadvantages are further analysed across the BRICS countries. The results show a continuous shift from primary manufacturing and from production of merchandise with low added value, to more sophisticated goods.

Revealed Comparative Advantage and Measurement of International Competitiveness for Dates

The purpose of this study was to understand the pattern of export of dates in Iran and the other main exporter countries. Revealed comparative advantage (RCA) was used to examine comparative advantage of the main exporters of dates. Export-share revealed the comparative advantage index and Spearman's correlation coefficients were analyzed to identify the dynamic changes in comparative advantage for dates. In the last 4 decades, comparative advantage for dates changed for many countries. A trend developed toward reduction in the comparative advantage of Iran, Iraq, and Saudi Arabia in favor of United Arab Emirates (UAE), Tunisia, and Pakistan from 1989 to 2005. Spearman's correlation coefficients showed that the RCA of Iran and UAE were negatively related to the RCA of Iraq and Saudi Arabia. A regression export model indicated that comparative advantage and export promotion policy had a major role in the export of Iranian dates.

The Competitiveness of Agricultural Products in the aftermath of the Global Food Crisis: Turkish Case

Food and financial crisis have been consecutively experienced in the second half of the 2000s and have significantly affected the commodity markets. Those crises led to serious fluctuations at food prices and agricultural production costs. In this study it is aimed to determine the change in comparative advantage of Turkey resulting from the food crisis in 2007-2008 and the rising food prices in 2011 given that the domestic agricultural production costs and prices are high in Turkey. In the study statistical comparisons are used as a method in the examination of international conditions of competitiveness via OECD statistics, and domestic sources are prefered examining cost structures and prices of selected products in Turkey to understand the global competitiveness situation. According to the data revealed in commodity prices, especially after 2010 domestic prices converged to world prices. Meanwhile, due to the crises, especially energy and fertilizer costs of agricultural production have risen and their weight in costs have increased. In the study cereal products, sunflower and sugar beet are expected to experience trouble in the world markets even when their production costs are considered. Whereas barley and sugar gains comparative advantage at world prices. Consequently, while improving agricultural structure in the country, reducing costs of inputs in agricultural production through relevant policies, productivity-enhancement through R&D and use of the technology in production are important policy choices for improving competitiveness considering the positive impact of rising world food prices.

Looking Forward: Incremental Change or Transformation?

IN OUR INAUGURAL ESSAY, TIM SISK AND I DECLARED OUR INTENTION TO FOSter exploration of the ways in which social goods--like wealth, power, security, authority, food, water, and knowledge--are continuously distributed or maldistributed through cooperation and competition among influential actors--public, nonprofit, and private (including illicit associations)--within a constantly evolving normative framework, an increasingly stressed natural environment, and stunning technological change. Coincidentally, we hoped to illuminate the reasons why the extant system of governance so inadequately addresses the great threats to human flourishing from the proliferation of weapons of mass destruction to climate change, slaughter of the helpless, and destitution. The question we asked ourselves was: What format would best serve our ends? Editors, like other human beings, are to a degree path dependent. We accepted our structural legacy, but tweaked it in part by increasing the number of special issues and sections and beginning the normalization of longer review essays. Perhaps we departed modestly from some of our predecessors by convening scholars and practitioners around issues and events that we deemed particularly salient in terms of our larger aims. An early example was the symposium that I organized on the controversial Goldstone Report. I had two immediate goals. One was to promote clarification through discourse of the constraints that human rights and humanitarian law impose on the parties to asymmetric conflicts whether occurring within a single territorial authority or across international boundaries. Another was to strengthen the precedent for relatively rapid scholarly assessment of important UN reports and thereby to sharpen fact-finding and analytical standards for UN inquiries. After all, an important element of effective global governance is a systemic capacity for fact-finding and assessment that will be widely perceived as authoritative. A second product of our efforts to organize collective inquiry was the special issue on the multilateral diplomacy of states moving rapidly higher in the league tables of geo-economic and geostrategic influence, specifically Brazil, Russia, India, and China (the BRIC countries) which we followed up with a similar piece on Turkey. Had time allowed, we would have commissioned additional pieces at a minimum on Indonesia and Nigeria or South Africa. Yet a third illustration of our attempt to convene scholars in order to address a critical governance issue are the two articles on the governance of transnational river systems that appeared in the previous issue. One of my disappointments as coeditor was my inability to find a scholar willing and able to lead an assessment of measures taken by nations with relatively effective governments to mitigate the impact of global market forces on sectors of the national population most vulnerable to rapid changes in comparative advantage. I saw it as an effort to identify best practices in helping not only the destitute, but also members of the middle and working classes who in middle age find themselves economically redundant. Probably for youth unemployment we would have needed a separate, albeit related, study of best practices. These days even relatively successful states have diminished fiscal resources for protecting the welfare of their citizens. …

The Allocation of Agricultural Tariff Rate Quotas among Supplying Countries under the General Agreement on Tariffs and Trade

This paper examines the allocation of Tariff Rate Quotas (TRQs) among supplying countries under Article XIII of the General Agreement on Tariffs and Trade (GATT). Showing through an analysis of the jurisprudence that Article XIII operates as a non-discrimination provision, it is argued that a textual reading of the objects of Article XIII:2 GATT must then be read in the light of the overall objective of non-discrimination between all contracting parties that is set out in Article XIII. An analysis of paragraph 2 which results in a static interpretation would mean that Members could discriminate by fixing allocations and leaving them untouched for many years. The effect of a static interpretation would be to fossilise trade patterns and not to allow for the dynamic effects of changes in comparative advantage that a tariff based market protection system, and Article I GATT, is designed to achieve. It concludes that a proper interpretation of Article XIII requires WTO Members of the World Trade Organisation (WTO) to regularly re-examine the allocations of TRQs among supplying countries so as to comply with the ‘chapeau’ of Article XIII:2 GATT.

The Agricultural Model Intercomparison and Improvement Project (AgMIP): Protocols and pilot studies

The Agricultural Model Intercomparison and Improvement Project (AgMIP) is a major international effort linking the climate, crop, and economic modeling communities with cutting-edge information technology to produce improved crop and economic models and the next generation of climate impact projections for the agricultural sector. The goals of AgMIP are to improve substantially the characterization of world food security due to climate change and to enhance adaptation capacity in both developing and developed countries. Analyses of the agricultural impacts of climate variability and change require a transdisciplinary effort to consistently link state-of-the-art climate scenarios to crop and economic models. Crop model outputs are aggregated as inputs to regional and global economic models to determine regional vulnerabilities, changes in comparative advantage, price effects, and potential adaptation strategies in the agricultural sector. Climate, Crop Modeling, Economics, and Information Technology Team Protocols are presented to guide coordinated climate, crop modeling, economics, and information technology research activities around the world, along with AgMIP Cross-Cutting Themes that address uncertainty, aggregation and scaling, and the development of Representative Agricultural Pathways (RAPs) to enable testing of climate change adaptations in the context of other regional and global trends. The organization of research activities by geographic region and specific crops is described, along with project milestones.Pilot results demonstrate AgMIP's role in assessing climate impacts with explicit representation of uncertainties in climate scenarios and simulations using crop and economic models. An intercomparison of wheat model simulations near Obregón, Mexico reveals inter-model differences in yield sensitivity to [CO2] with model uncertainty holding approximately steady as concentrations rise, while uncertainty related to choice of crop model increases with rising temperatures. Wheat model simulations with mid-century climate scenarios project a slight decline in absolute yields that is more sensitive to selection of crop model than to global climate model, emissions scenario, or climate scenario downscaling method. A comparison of regional and national-scale economic simulations finds a large sensitivity of projected yield changes to the simulations’ resolved scales. Finally, a global economic model intercomparison example demonstrates that improvements in the understanding of agriculture futures arise from integration of the range of uncertainty in crop, climate, and economic modeling results in multi-model assessments.

The comparative advantage of Chinese manufactured exports

PurposeConsiderable research has been conducted on the comparative advantage of Chinese manufactured exports before 2000, but too little attention has been focused on the twenty‐first century. With this rapid growth of China's export volume since 2001, what is the change in comparative advantage? Have qualitative changes taken place? The purpose of this paper is to conduct a thorough analysis of the comparative advantage of Chinese manufactures from 2002 to 2009, not only within the world market but also in the US market.Design/methodology/approachThe research is based on 144 manufactures' comparative advantage in the US and world market, displaying the distribution and variation range for the comparative advantage of Chinese manufactures at different technological levels in the 2002‐2009 period with the RCA Index. This paper classifies 144 kinds of manufactures (on Standard International Trade Classification, Rev. 3 data) by technology level into five general groups and nine small groups, which cover the majority of Chinese manufactured exports.FindingsFirst, the authors found that types of Chinese manufactured products with comparative advantage in both world and US markets are increasing. Most of the products with comparative advantage are low technology (LT) products. Second, in the world market, the comparative advantage of Chinese medium technology (MT) products has largely improved, but their RCA indexes are low and their kinds of products with very high comparative advantage are small. Third, as a whole, Chinese manufactured exports are of greater comparative advantage in the world market than in the US market. Specifically, LT products have the same position in world and US markets, while MT products and high technology (HT) products obviously have a greater comparative advantage in the world market.Originality/valueFirst, little research has been conducted on the comparative advantage of Chinese manufactured exports since 2001. This paper undertakes a thorough analysis of the comparative advantage of Chinese manufactures from 2002 to 2009, not only within the world market but also in the US market. Second, it is very important for China to stabilize the overseas market demand and secure exports, this paper shows how China could cope with a crisis.