A Study On The Mechanism And Transformation Between Comparative Advantage And Competitive Advantage

With the development of the knowledge economy and economic globalization in depth, the developed countries expect to gain greater competitive advantage to improve their welfare level,while the developing countries continue to seek for the comparative advantages, and strive to narrow the economic gap with developed countries to achieve the transition from comparative advantage to competitive advantage. The comparative advantages may derive from the differences of labor productivity, a relatively abundant factor endowment or scale economics.It's the primary stage of competitive advantage and the potential competitive advantage. However a nation doesn't own the competitive advantage absolutely unless the nation fosters and upgrades persistently the competitive advantage, even it has the comparative advantage.This paper analyzes the mechanism and transformation between the comparative advantage and competitive advantage by combing the method of qualitative analysis and quantitative analysis, standard research and empirical studies, integrating the International Trade, Industrial Economics, Technology Economics, Institutional Economics, Management and other theories comprehensively. The contents are as follows:1.The theory base of the comparative advantage and competitive advantage. It includes the content, the evolution path of comparative advantage theory and competitive advantage theory. The former is based on the logical evolution of labor productivity differences, differences in resource endowments, economies of scale and trade efficiency differences of the comparative advantage. Logical evolution of the latter is based on knowledge advantages, policies advantages, market structure advantages, strategic advantages of competitive advantage.2.The mechanism of Comparative advantage and competitive advantage. This paper analyses the mechanism from static and dynamic aspects. One on hand, static analysis embodies in the 6 differences and 6 affiliations between the comparative advantage and competitive advantage.6 differences refer to the differences of the assumptions, composition of elements, development characteristics, segmentation types, trade policies and philosophy embodied.6 affiliations are as follows:both of the two advantages research that the domestic production and consumption should remain what kind of structure to maximize the level of national welfare under the open conditions of a country, in which comparative advantage focus' on the factor endowments of different circumstances international division of labor and cooperation while competitive advantage concerns more about the distribution of benefits of international products under the condition of the same factor endowments.In content, comparative advantage is the initial stage and one of the manifestations of the competitive advantage; it's a necessary condition for competitive advantage. On the other hand, dynamic analysis refers to that build the interaction model of comparative advantage and competitive advantage associated based on the contents of the product life cycle theory, varying degrees of intensity to the positive and negative nature of revealed comparative advantage and competitive advantage of the property.3.The transformation of comparative advantage and competitive advantage. This paper constructs the slope model of the revolution between comparative advantage and competitive advantage in accordance with the logical line of point-line-side-system, which is also "54321" model, including five elements, four assumptions, three paths, two platforms, a system. Even more it builds "human" type model to explain five elements of the relationship.4. The empirical analysis from comparative advantage to competitive advantage. The paper firstly researches the industry characteristics of automotive industry then does the comparative analysis of competitive advantage of automotive industry of U.S.,Japanese and German. Lastly it discribes the comparative advantage and the competitive advantage of China's auto industry from the elements of conditions of demand, market structure, capital and related industries, technology and government policies combined the method of Principal Component Analysis.5.Environmental and policy support from comparative advantage to competitive advantage. It points out that the government is the baton of environmental support and policy between the revolution of comparative advantage and competitive advantage puts forwards the measures from the angles of the macro, industry support and micro support.