The Changing Trade and Revealed Comparative Advantages of Asian and Latin American Manufacture Exports

26 Pages Posted: 5 Mar 2002

See all articles by Siegfried Bender

Siegfried Bender

Yale University - Department of Economics; University of São Paulo (USP) - Department of Economics

Kui-Wai Li

Munk School of Global Affairs, University of Toronto

Date Written: March 2002

Abstract

Changes in comparative advantage should reflect changes in factor endowment, but increasingly, changes in trade policies also affect a region's trade performance. Based on the arguments in Balassa's stages of comparative advantage thesis, this paper looks at the performance of manufacture exports in a number of Asian and Latin American economies over the period 1981-1997 and examines the revealed comparative advantage indices between economies in East Asia, Southeast Asia and Latin America. Although the RCA measurement may not distinguish between the factor endowment effects from the trade policy effect, we argue that RCA measures provide indication on the movement in a region's comparative advantage. The evidence strongly suggests that despite the strong export performance experienced by East Asian economies, they are losing their comparative advantage to the lower-tier economies in Southeast Asia and Latin America.

Keywords: International Trade, Revealed Comparative Advantage, Manufacture Exports

JEL Classification: F14

Suggested Citation

Bender, Siegfried and Li, Kui-Wai, The Changing Trade and Revealed Comparative Advantages of Asian and Latin American Manufacture Exports (March 2002). Available at SSRN: https://ssrn.com/abstract=303259

Siegfried Bender (Contact Author)

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8264
United States

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto, 908
Sao Paulo SP, 05508-900
Brazil
055-11-38186071 (Phone)
055-11-38186013 (Fax)

Kui-Wai Li

Munk School of Global Affairs, University of Toronto ( email )

Toronto
Canada

HOME PAGE: http://https://kw-consultancy.com/

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