An Empirical Study Of The Value Added Trade Statistics And Competitive Advantage In International Trade

Value added, which is based on the original value of the product through the production process of effective labor newly created value, is attached to the product of the original value of the new value. In international trade, the added value is the new value that is higher than the original value of a product due to the labor compensation, tariffs or other reasons resulting profits. The statistical data based on added value of international trade is called Value-added statistical method.The complexity of the economic situation brings more opportunities and challenges. How to remain and enhance our competitive advantage in such an international environment, and to enable our country to open up the market in an increasingly fierce international competition? It requires the understanding of a country’s competitive advantage and what factors constraints. Past trade statistical method ignores the impact of added value in the global value chain. There are some flaws and errors inevitably mislead policy formulation, so that the effects of policy are not up to the expected results or produce large deviation, and sometimes even counterproductive. This selection of value-added trade statistics method is intended to overcome the disadvantages of being in the traditional statistical methods, hoping to get a more accurate result.This paper uses OECD-WTO Trade in Value Added (TiVA) database and TC index to calculate trade competitive advantage from 55 countries and districts and compares it with the data measured by non-value-added statistical methods. Then, the paper compares the competitive advantage of different countries and found that the comparative advantage of developing country exports is changing by the occurrence of primary products to manufactured goods, but for finished products, especially high-tech manufactured goods, developing countries does not have the advantage in this respect. At last this paper starts from 1995 to 2009 the 15 years of data about international trade, continuous panel models and section panel model were constructed to analyze the trade of international competitive advantage in recent years and what influences its empirical factors.