Comparative Advantage and Latecomer Advantage

To achieve development,developing countries must capitalize on their relative advantages,including comparative advantage and latecomer advantages.A country must develop an industrial structure that is consistent with the comparative advantage of its factor structure in order to avoid the trap of“structural catch-up”that stifles development.The issue for developing countries is that their comparative advantage in core factors of production is unstable and tends to decrease and dissipate.Such a comparative advantage cannot provide adequate growth for convergence to occur.Developed countries,on the other hand,can sustain economic growth due to their comparative advantage in high-quality factors.Latecomer advantage refers to the ability of developing countries to increase their knowledge factor in a cost-effective manner by learning,importing,assimilating,and using knowledge and technology that already exist.Although comparative and latecomer advantages may have a combined effect,each has its distinct characteristics.Latecomer advantage is a special development factor that applies to latecomers.It is crucial at all stages of development,but especially so in the middle-income stage and beyond.Bringing latecomer advantage into full play is essential for developing nations to converge with the advanced countries.

Comparative advantages of chemical compositions of specific edible vegetable oils

As important supplementary to major edible oils, comparative chemical advantages of minor edible oils decidetheir development and usage. In this study, chemical composition of 13 kinds of specific edible vegetable oilswere investigated. The comparative advantages of chemical compositions of these edible oils were obtained asfollows: (1) camellia, tiger nut and almond oil were rich in oleic acid, the contents of which accounted for79.43%, 69.16% and 66.26%, respectively;(2) safflower oil contained the highest content of linoleic acid(76.69%), followed by grape seed (66.85%) and walnut oil (57.30%);(3) perilla seed, siritch, peony seed andherbaceous peony seed oil were rich in α-linolenic acid (59.61%, 43.74%, 40.83% and 30.84%, respectively);(4)the total phytosterol contents of these oils ranged from 91.46 mg/100 g (camellia oil) to 506.46 mg/100 g (siritchoil);and (5) The best source of tocopherols was sacha inchi oil (122.74 mg/100 g), followed by perilla seed oil(55.89 mg/100 g), peony seed oil (53.73 mg/100 g) and herbaceous peony seed oil (47.17 mg/100 g). Thecomparative advantages of these specific edible oils indicated that they possess the high potential nutritionalvalues and health care functions.

Comparative Advantages and Specialized Production of Beef Cattle Industry in Yanbian Region

[Objective] To provide theoretical guidance for development of beef cattle industry in Yanbian region. [Method] Aggregated compara- tive advantage index and concentration factor were used to compare beef industry in Yanbian region and Jilin Province. [ Result] Beef cattle industry in Yanbian region had aggregated comparative advantages, and its concentration factor tended to rise year by year. [ Conclusion] The beef cattle industry in Yanbian region has obvious comparative advantages and development potential.

The Major Challenges and Strategies for the Development of Green Economy in China's Mountain Regions Based on the Theory of Comparative Advantage

Based on the theory of comparative advantage,this paper analyzes the major challenges facing the development of green economy in China's mountain regions. The results show that in the development of green economy,the mountain regions have factor endowment and development conditions with comparative advantage,but they are also facing more challenges. In the future,the mountain regions need to make favorable development measures based on their own comparative advantages from the following four aspects: at the top design level,it is necessary to ensure green development through institutional innovation; at the regional level,it is necessary to lead green development through the differentiation strategy; at the industrial level,it is necessary to support green development through transformation and innovation; at the social level,it is necessary to focus on protecting vulnerable groups and give full play to the role of women to promote sharing of green development achievements.

Revealed Comparative Advantage and Competitiveness in Chinese Agricultural Sectors

This paper examined the competitiveness of Chinese agricultural products, in relation to the rest of the world, based on the index of revealed comparative advantage, using lots of data during period of 1980 to 2000. The index is useful in identifying the demarcation between comparative advantage and comparative disadvantage, though a problem exits when using it. China is shown to have a comparative advantage in a range of agricultural products, including edible vegetables and tea. This complements the findings of those studies that have used price and cost based on approaches in identifying competitiveness in agricultural products. Results indicated that the RCA values had been weakening over the 21-year period. These have vastly different implication for the future reform in China＇s agriculture,

Evaluation on Explicit Dominance of Production and Development of Crops Based on Theory of Comparative Advantage——A Case Study of Wengyuan County

This article offers an overview of crop production in Wengyuan County:the growing area of rice is the biggest followed by sugarcane and the growing area of mulberry,Sanhua plum and Jiuxian peach is small;the annual output of sugarcane is the biggest followed by rice,the annual output of mulberry ranks NO.3,and the output of Sanhua plum and Jiuxian peach is the lowest,but the annual output of them is very close.In accordance with evaluation indicator system concerning explicit dominance of production and development of crops,coupled with data analysis,we determine the explicit dominance of the main crops in Wengyuan County.The results show that the normalized explicit dominance of rice,sugarcane,mulberry,Sanhua plum and Jiuxian peach in Wengyuan County is 0.23,0.94,0.33,0.22 and 0.46,respectively;in Wengyuan County,the sugarcane is fit to expand the scale,the mulberry and Jiuxian peach are relatively fit to expand the scale,and the rice and Sanhua plum are not fit to expand the scale.

Study on Comparative Advantage of Plateau Characteristic Agriculture in Yunnan

To find the highlighted advantage and development space of plateau characteristic agriculture in Yunnan,using qualitative and quantitative combining methods,comparative advantage of plateau characteristic agriculture in Yunnan is evaluated comprehensively.Qualitation takes Sichuan,Chongqing,Guizhou and Guangxi adjacent to Yunnan and Southeast Asian countries which are opening focus of " bridgehead" as reference objects,while quantitation takes 32 provinces of whole country except Hongkong and Macao as reference objects,and there are 4 kinds of qualitation indexes and 6 kinds of quantitation indexes containing 44 sub-items.Results show that comprehensive comparative advantage coefficient of plateau characteristic agriculture in Yunnan is 1.55,and it has 3 kinds of comprehensive comparative advantages:diversity,ecological security and time difference complementation.The research results could provide references for agricultural development in Yunnan and other plateau regions.

Maximizing Comparative Advantages

China＇s domestic market and locally manufactured products set to drive future economic growth

Revealed Comparative Advantage, Intraindustry Trade and the US Manufacturing Trade Deficit with China

This paper uses 4-digit SITC data to identify groups of manufactured goods exported from China to the USA that have strong or rising comparative advantages. We find that most of the trades are inter-industry, with only a small portion being vertical intra-industry trades （IIT）. Our results confirm that Sino-US trade is complementary. We construct an imbalanced index of IIT, and identify the goods groups that aggravate and reduce the US trade deficit with China. We suggest an approach for calculating a dynamic IIT index that might mitigate the aggregation bias of the existing methodologies. Our improved index reveals that the dynamic imbalances of US-Chinese IIT in manufactured goods are worse than their static IIT imbalances, which means that it would be difficult to correct the deficit of US trade with China in the following couple of years. Adjusting and improving the structures of industries and products is China ＇s major task for sustainable trade growth.

Is Financial Development Another Source of Comparative Advantage? Evidence from China

Using panel data for 29 provinces in China during 1990-2004, the present paper attempts to explore a possible link between financial development and China＇s foreign trade. Three measures of comparative advantage in manufactured goods have been applied in our study, including Balassa＇s revealed comparative advantage, the net manufactured export index, and the Michaely index. We also use four indicators of financial development to identify the different functions of regional financial development, and to determine both size and efficiency features of financial institutions. The estimation results suggest that besides factor endowments, foreign firms and infrastructure, financial development has a quantitatively large and robust effect on China ＇ s manufactured goods trade. Therefore, further reform of China＇s financial system should be encouraged to fully exploit the comparative advantage of China＇s foreign trade.

Structure of Comparative Advantage of China and India： Global and Regional Dynamics

This paper investigates the extent of competition between China and lndia in the world and ASEAN markets. The analysis is undertaken using the concept of revealed comparative advantage, relative market shares, long-term trend analysis and statistical tests of convergence. In the context of the ASEAN market the evaluation of competition between India and China has been undertaken with special reference to the prior implementation of the ASEAN-China Free Trade Area relative to the ASEAN-India Free Trade Area. The results suggest that threat perceptions at the product level might currently prevail for both economies from each other across all sectors in both markets even though the intensity of the competitive threat varies across products. However, long-term trend analysis shows that the patterns of comparative advantage of India and China are evolving along divergent paths and, therefore, competition between the two economies might not be a major issue.

Changing Comparative Advantage, Real Exchange Rate Impact and Sino-Japanese Trade Fluctuations

China, as an important source country in the global value chain, especially in the East Asian production networks, has exerted significant influence on Sino-Japanese trade fluctuations. This paper explores the real factors that lead to the fluctuations in Sino- Japanese trade. Using the Hodrick-Prescott filter technique and OECD-WTO Statistics on Trade in Value Added from 1995 to 2011, the impact of the changing comparative advantage between the two countries is also examined. The empirical results indicate that determinants of the fluctuations in Sino-Japapese trade include changing comparative advantages, the volatility of the real exchange rate and quite a few external shocks. Some policy suggestions are put forward in regards to the stability of trade between the two countries.

Regional and Sectoral Patterns and Determinants of Comparative Advantage in China

China＇s export performance is marked by large regional disparities which affect trade patterns at the national level. This paper uses data from input-output tables to estimate the comparative advantage of Chinese provinces in the three main economic sectors over the period 1992-2007. In contrast to existing studies, we include the services sector in the analysis and construct not only indices of revealed comparative advantage for overall trade, but also bilateral indices for interprovincial trade. The results indicate that West and Central China have a comparative advantage in agriculture/mining, coastal provinces in manufacturing, and metropolitan provinces in services. However, interprovincial trade exhibits a more complex pattern. Regression analysis identifies labor endowments as the key determinant of comparative advantage in total trade, while physical capital is the driving force in domestic trade. Human capital and government spending have a positive effect, whereas industrial loans and taxes, along with provincial trade barriers, impair comparative advantage.

Impact of market access and comparative advantage on regional distribution of manufacturing sector

We discuss the effects of trade costs and comparative technology on industry location by employing the model presented by Martin and Rogers(1995).The model supposes comparative technology differences and different intraregional and interregional trade costs and argues how different factors influence location of industrial value added.By processing the designed model,equations were set up to check whether the conclusions from our mathematical model are credible under panel data at the provincial level of China from 1995 to 2014.We find that location of industrial value added in a region is strongly related to infrastructure and local market size while geographical location of a region is an important determinant for deciding which factor should be handled first.

Comparative Advantage Not Cause of Trade Surplus

Since adopting` the reform and opening-up policy in the late 1970s, China has constantly expanded its foreign trade by giving full play to its comparative advantage in production cost. However, nowadays, problems previously camouflaged by high GDP growth have begun to emerge from the woodwork. Externally, China is faced with pressure on the yuan's appreciation resulting from the trade surplus, as well as trade frictions with the United States and the EU. Internally, the problem is excess liquidity due to over $1 trillion in foreign exchange reserves, coupled with a sizzling stock market and sharply rising housing prices. In a recent interview with 21st Century Business Herald, Professor Justin Yi-fu Lin from China Center for Economic Research, Peking University, who was the first person to introduce the concept of "comparative advantage" to China, responds to the many doubts people have about the theory. Excerpts:

Comparative Analysis of Rice Export Competitiveness in Heilongjiang Province of China Based on Index Method

Based on the analysis of rice planting and export development in Heilongjiang Province in 2013-2021,this paper comprehensively used three export competitiveness analysis methods,namely,trade competitiveness index,revealed comparative advantage(RCA)analysis and international market share analysis,to compare the four major rice exporters in the world and the three major rice export provinces and cities in China.Besides,it evaluated the rice export competitiveness of Heilongjiang Province from multiple perspectives.It analyzed the reasons for low competitiveness in terms of export product structure,export market structure,production and processing technology,and brand building.Finally,it is recommended to clarify the positioning of rice export quality and take more measures to ensure product quality;improve the level of industrialization of rice production and processing,and extend the rice industry chain;develop diversified rice export markets and improve export flexibility;adhere to the principle of"opening the door and going out",expand the international popularity of high-quality brands,so as to enhance the rice export competitiveness of Heilongjiang Province.

Specialization and Coordination: New Paradigm, Theory, and Path for Regional Development

In its new development stage,China seeks to derive new dynamism from reform and opening up at a higher level to boost consumption and services.This process coincides with a further differentiation of comparative advantages across regions.Economic activity and population will continue to concentrate in clusters in coastal and central cities amid a continuous outflow of population from remote areas.Development expansion from coastal to interior regions and from central cities to the periphery will promote a new regional development paradigm of“dual centers and periphery”.Therefore,China’s regional development strategy should follow the new theory of seeking relative equilibrium amid development,identify regions of population inflow and outflow,and explore a new development path of regional specialization and coordination.By deepening market reforms and increasing central government coordination,the country is poised to improve the spatial allocation of resources and unleash institutional dividends in the process of developing a unified national market.

Agricultural Exports Competitiveness of Pakistan in Global Market

Agricultural sector is a major source of employment and export earnings for Pakistan. Exports of Pakistan are highly concentrated in agricultural products including cotton, rice, sugar and fruit. This study analyzed comparative and competitive advantages of the main agricultural products of Pakistan, i.e. cotton, rice and tangerines. Consumption patterns of top exporting countries in each category were also analyzed. Results revealed that Pakistan had strong competitiveness for export of these commodities. Strong potential for growth in the agricultural sector of Pakistan was found and it could be optimized to raise export earnings and meet the objectives of the strategic trade policy framework （STPF） 2015-2018 of Pakistan.

Regional Virtual Water Trade Strategy in Drought Area in China

[Objective]The aim was to analyze the virtual water trade in drought area in China.[Method]Taking agricultural production which was related to water resources as study object and by dint of opportunity cost and comparative advantage theory,water resources have been included into a series of state macro-objective models,such as economic growth,crops safety,and increase of people’s well-fare.Virtual water resource strategy was verified effectively and relevant suggestions on virtual water trade in the drought areas in China were proposed.[Result]Virtual water strategy can be implemented in places where water resource was limited so as to get low-water-demand products and change products with humid areas.But the premise was that the production technology of watery product in humid area was higher than the limited-water area,so that there can be adequate impetus to involve into virtual water strategy program and enhance each other’s benefits through commerce and ease water resources shortage and ecological destruction problem and stimulated economic development.[Conclusion] The study provided scientific basis to solve the water shortage problem in China.