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Regional and Sectoral Patterns and Determinants of Comparative Advantage in China

Author

Listed:
  • William Charles Sawyer

    (Department of Economics, Texas Christian University, Fort Worth, Texas 76129, USA)

  • Kiril Tochkov

    (Department of Economics, Texas Christian University, Fort Worth, Texas 76129, USA)

  • Wenting Yu

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, PA 15213, USA)

Abstract

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¨C2007. 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.

Suggested Citation

  • William Charles Sawyer & Kiril Tochkov & Wenting Yu, 2017. "Regional and Sectoral Patterns and Determinants of Comparative Advantage in China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(1), pages 7-36, March.
    • Handle: RePEc:fec:journl:v:12:y:2017:i:1:p:7-36
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-006-017-0002-6
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    Citations

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    Cited by:

    1. Gordeev, Roman, 2020. "Comparative advantages of Russian forest products on the global market," Forest Policy and Economics, Elsevier, vol. 119(C).
    2. Olivera Kostoska & Ilija Hristoski, 2018. "Trade Dynamics, Revealed Comparative Advantage, And International Competitiveness: Evidence From Macedonia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 63(218), pages 23-60, July – Se.
    3. Jenny P. Danna-Buitrago & Rémi Stellian, 2022. "A New Class of Revealed Comparative Advantage Indexes," Open Economies Review, Springer, vol. 33(3), pages 477-503, July.

    More about this item

    Keywords

    comparative advantage; trade; sectors; regional disparities; China;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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