The Measurement And Analysis Of Sino-US Manufacturing Trade RCA Index

As the traditional trade theory, the comparative advantage theory has been questioned by people in recent years .scholars study the situation of world trade as far as possible by relaxing some assumptions .through this course, the comparative advantage theory has a new meaning , which is not a static theory , on the contrary , it becomes a wide and dynamic theory.Since joining the WTO, the total trade of china has reached a high level, both china and U.S. are each others largest trading partner. The trade volume of these two country is rising, but the trade structure is unbalanced. Especially china, the high exports to the united states, mainly in SITC6 .SITC7. SITC8 three types of products, including manufactured goods classified chiefly by material, machinery and machinery and equipment, miscellaneous manufactured articles. This paper introduces Balassa's Revealed Comparative Advantage Index, using this Index to measure the comparative advantages of Sino-US trade.The article is divided into four parts, the first part introduce the development of the theory of comparative advantage ,extending the theory model to made it as close as the external conditions of world economic. The comparative advantage theory is enriched by the introduction of three theories including the product life cycle theory, economies of scale theory and Porter's competitive advantage theory. The second part describes the advantage difference between china and USA by measuring the RCA or NRCA and observes the comparative advantage change tend in time series. In the third part, which make a theoretical explanation by comparing the input factors of production between the two countries, the international vertical specialization and trade policy trend. Finally, China participate in the world trade using itself comparative advantage, which bring some problems. The fourth part propose policy recommendations to make the promotion of active play to the advantage, to achieve sustainable development through industrial upgrading and to obtain international trade interests dynamically.