Revealed Comparative Advantage Measure: ASEAN-China Trade Flows

Abstract

This paper investigates the comparative advantage of ASEAN countries and China. We tested the comparative advantage by using Revealed Symmetric Comparative Advantage (RSCA) and Trade Balance Index (TBI) approach. Export products are analyzed based on Standard International Trade Classification (SITC) revision 3, which is divided into primary products and manufactured products. We found that the Chinese have more established patterns of trade, while ASEAN trade patterns are very dynamic. We also ferret out strong support, the comparative advantages to the trade balance, comparative advantage will toss up a profit (net export). This research cogent backlit the comparative advantage theorem.

Keyword:Patterns of Trade, Revealed Symmetric Comparative Advantage, Trade Balance.