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Has China Fallen Into The Comparative Advantage Trap?

Posted on:2018-11-19Degree:MasterType:Thesis
Country:ChinaCandidate:W ZhangFull Text:PDF
GTID:2359330515997362Subject:Western economics
Abstract/Summary:PDF Full Text Request
Since Adam Smith and David Ricardo founded the theory of comparative advantage,the theory has been the mainstream theory of guiding countries(especially the underdeveloped countries)to carry out international trade.However,with the gradual advancement of economic globalization,comparative advantage theory as a long-term guide may lead to the underdeveloped countries into "comparative advantage trap".Therefore,it is of great theoretical and practical significance to explore whether the "comparative advantage trap" exists and whether China will fall into the trap.In the past literature research,the Markov chain model is often used to demonstrate whether the existence of "comparative advantage traps" exists on the basis of the comparative advantage,but only the flow of comparative advantage,and not its flow direction.Therefore,this article through the improved analysis method,the use of Markov chain comparative advantage of multi-dimensional dynamic analysis,not only to determine a country's comparative advantage of liquidity,but also to determine a country's comparative advantage of the direction of change,and thus more accurately reflect the comparative advantage Change trend,draw the opposite conclusion with similar studies in the past,that "comparative advantage trap"is indeed there.And then use the cumulative Lafay index and international comparison to analyze China's comparative advantage of dynamic changes,demonstrated that China did not fall into the "comparative advantage trap".First of all,this paper introduces the relevant theoretical basis,combs the existing literature,and points out the research direction of this paper.Secondly,Using SITC-2 digit world trade flow data of 161 countries since 1987 and multidimensional dynamic analysis of Markov chain model to analyze existence of "comparative advantage trap".In this section,the main use of two ways to be demonstrated.One way is to introduce the Markov chain model to analyze the transition of comparative advantage based on the comparative advantage of labor-intensive products and capital-intensive products with different income levels.The other way is to introduce the technical content index,the PRODY index and capital,labor-intensive products to analyze the combination of comparative advantage of the transfer situation.Different from the previous research,the results show that"comparative advantage trap" does exist.Thirdly,through the analysis of the evolution trend of China's comparative advantage from the time chart of the top ten changes in the Lafay index,China has gained a strong comparative advantage over many of the technical capital goods over time,and China's technical structure of export products has been greatly improved.Then,the cumulative Lafay index is used to analyze the dynamic change of China's comparative advantage,and it is proved if China has fallen into the "comparative advantage trap" through international comparison with the cumulative Lafay curve of typical countries in different income stages.The results show that China's Comparative advantage is turning to higher-tech products,the structure of exports in the gradual optimization and upgrading,China has not fallen into the "comparative advantage trap".Finally,the conclusion of this paper is obtained."Comparative advantage trap"to a certain extent is indeed there,China is not caught in the "comparative advantage trap" among.
Keywords/Search Tags:Comparative Advantage Trap, Markov Chain Model, Cumulative Curves of Lafay Indexes
PDF Full Text Request
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