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The dynamics of changing comparative advantage in the Asia‐Pacific region

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  • Mark Hiley

Abstract

As a response to the changing economic environment and domestic comparative advantage, Asian countries have undergone significant structural change and readjustment. The manufacturing sector of the ASEAN economies is of interest not only because of the pace of industrialization that has occurred in the region, but also because in each country manufacturing has undergone a major transformation. One element of this process is the increase in manufactured exports. Another is the profound change in the structure of manufacturing, involving the transition from simple consumer goods and resource‐based processing activities towards more sophisticated industrial structures. To determine whether or not the case of ASEAN accords well with the predictions of trade theory, changes in a measure of revealed comparative advantage (RCA) ‐ the export specialization ratio (Balassa 1965) ‐ are identified. An attempt is then made to see how closely the dynamic changes in industrial structure have followed the flying‐geese pattern of development (Akamatsu 1961, 1962).

Suggested Citation

  • Mark Hiley, 1999. "The dynamics of changing comparative advantage in the Asia‐Pacific region," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 4(3), pages 446-467.
    • Handle: RePEc:taf:rjapxx:v:4:y:1999:i:3:p:446-467
    DOI: 10.1080/13547869908724693
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    References listed on IDEAS

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    1. Hal Hill & Brian Johns, 1985. "The role of direct foreign investment in developing east asian countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 121(2), pages 355-381, June.
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    5. Bela Balassa, 1991. "Economic Policies in the Pacific Area Developing Countries," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-12045-1, December.
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    Cited by:

    1. Kaveri Deb & Bodhisattva Sengupta, 2018. "Value-Added Trade and Empirical Distributions of RCA Indices," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 235-264, March.
    2. Bernardina Algieri & Antonio Aquino & Marianna Succurro, 2022. "Trade Specialisation and Changing Patterns of Comparative Advantages in Manufactured Goods," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(3), pages 607-667, November.
    3. Kaveri Deb & Bodhisattva Sengupta, 2017. "On Empirical Distribution of RCA Indices," IIM Kozhikode Society & Management Review, , vol. 6(1), pages 23-41, January.
    4. Junning Cai & PingSun Leung, 2008. "Towards a more general measure of revealed comparative advantage variation," Applied Economics Letters, Taylor & Francis Journals, vol. 15(9), pages 723-726.
    5. Hao Chen & Jiadong Pan & Wen Xiao, 2020. "Chinese Outward Foreign Direct Investment and Industrial Upgrading from the Perspective of Differences among Countries," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(3), pages 1-28, May.

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