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The Complementarity Analysis of Comparative Advantage of Add-Value in Sino-Russian Sub-Sectors Based on Global Value Chain

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  • Lijun Jia
  • Jinlong Han

Abstract

Under the background of the intra-product specialization, the comparative advantage calculated by industrys total exports is different from which calculated by domestic add-value in exports. This paper proposes a non-competitive input-output method to measure the domestic value-added in export in Sino-Russian sub-sectors, and uses this method to modify the RCA index which is used to measure comparative advantage by industry total export volume, thus acquires VACA index. These two indexes are then used to measure the comparative advantage of Sino-Russian sub sectors in order to measure the complementary and competitive situation of them. In conclusion, for China, the result of RCA index exaggerates the comparative advantage of Chinas sub-sectors.While to Russia, just the opposite. Compared with Russia, Chinas domestic value-added in export is relatively smaller. The industries with comparative advantages (S4/6/8/9 in China and S2/3/7/19 in Russia) in this two countries are non-overlapping, and these sectors have a strong complementary.

Suggested Citation

  • Lijun Jia & Jinlong Han, 2016. "The Complementarity Analysis of Comparative Advantage of Add-Value in Sino-Russian Sub-Sectors Based on Global Value Chain," Journal of Social Economics, Research Academy of Social Sciences, vol. 3(2), pages 86-98.
    • Handle: RePEc:rss:jnljse:v3i2p5
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