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“Products Mapping” and Dynamic Shift in the Patterns of Comparative Advantage: Could India catch up China?

Widodo, Tri (2008): “Products Mapping” and Dynamic Shift in the Patterns of Comparative Advantage: Could India catch up China? Published in: HUE Journal of Economics and Business , Vol. 31, No. 2 (30 September 2008): pp. 51-78.

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Abstract

Abstract This paper aims to examine shifts in the level of comparative advantage in China and India for the period 1988-2003. Products are defined in the 3-digit level of the Standard International Trade Classification (SITC) Revision 2. This paper applies Revealed Symmetric Comparative Advantages (RSCA) index, Trade Balance Index (TBI), an econometric model and the Spearman’s rank correlation. Some conclusions are withdrawn. First, China and India had biggest changes in their comparative advantages in the periods 1988-1993 and 1998-2003, respectively. Second China and India showed despecialization. The change in comparative advantage of China was more dynamic than that of India. Third, in term of the patterns of comparative advantage, India is a follower (if it is not called as a ‘competitor’) of China.

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