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Skill Distribution and Comparative Advantage: A Comparison of China and India

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  • Asuyama, Yoko

Abstract

This paper empirically examines the different comparative advantages of China and India, in relation to their different skill distribution patterns. By utilizing industry export data on China and India from 1983 to 2000, we find that a country with a greater dispersion of skills (i.e.,India, especially in the earlier years) has higher exports in industries with shorter production chains, while a country with a more equal dispersion of skills (i.e., China, especially in the later years) has higher exports in industries with longer production chains. The causal relationship is fairly robust and skill sorting mechanism seems to work behind.

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  • Asuyama, Yoko, 2012. "Skill Distribution and Comparative Advantage: A Comparison of China and India," World Development, Elsevier, vol. 40(5), pages 956-969.
    • Handle: RePEc:eee:wdevel:v:40:y:2012:i:5:p:956-969
    DOI: 10.1016/j.worlddev.2011.11.017
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    Cited by:

    1. Yoko Asuyama & Hideaki Goto, 2016. "Negative Skill Sorting across Production Chains," Working Papers EMS_2016_04, Research Institute, International University of Japan.
    2. Yoko Asuyama & Mami Yamaguchi, 2014. "Labor: from fixed cost to variable cost," Chapters, in: Mariko Watanabe (ed.), The Disintegration of Production, chapter 10, pages 275-306, Edward Elgar Publishing.
    3. Narayan, Seema & Bhattacharya, Poulomi, 2019. "Relative export competitiveness of agricultural commodities and its determinants: Some evidence from India," World Development, Elsevier, vol. 117(C), pages 29-47.
    4. Asuyama, Yoko & Goto, Hideaki, 2016. "Negative skill sorting across production chains," IDE Discussion Papers 557, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Asuyama, Yoko, 2015. "Skill sorting and production chains : evidence from India," IDE Discussion Papers 545, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. Fox, Stephen, 2016. "Leapfrog skills: Combining vertical and horizontal multi-skills to overcome skill trade-offs that limit prosperity growth," Technology in Society, Elsevier, vol. 47(C), pages 129-139.
    7. Asuyama, Yoko, 2016. "Delegation to workers across countries and industries : social capital and coordination needs matter," IDE Discussion Papers 620, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Asuyama, Yoko, 2020. "Delegation to workers across countries and industries: Interacting effects of social capital and coordination needs," International Journal of Industrial Organization, Elsevier, vol. 69(C).

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