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Dynamic changes in comparative advantage: Japan “flying geese” model and its implications for China

Tri Widodo (Gadjah Mada University, Yogyakarta, Indonesia and Hiroshima University of Economics, Hiroshima, Japan)

Journal of Chinese Economic and Foreign Trade Studies

ISSN: 1754-4408

Article publication date: 3 October 2008

2192

Abstract

Purpose

The purpose of this paper is to examine the Japan flying geese (FG) model and its implications for China.

Design/methodology/approach

Data on exports and imports three‐digit the standard international trade clasification (SITC) Revision 2 from UN‐COMTRADE are employed. An analytical tool namely “products mapping” is made by combining two fundamental variables derived from the FG model. Revealed symmetric comparative advantage (RSCA) index and trade balance index are applied.

Findings

The paper provides evidence of the existence of FG pattern. Unskilled labor‐intensive industries and human capital‐intensive industries have clearly shown the FG pattern in East Asia. China has very high comparative advantage in those industries.

Research limitations/implications

The classification of industries is a crucial issue. This paper applies the broader classification of industries based on factor intensity rather than end use. Further researches on more specific industries might give detailed explanation.

Originality/value

The paper examines the position of East Asian countries in the FG model.

Keywords

Citation

Widodo, T. (2008), "Dynamic changes in comparative advantage: Japan “flying geese” model and its implications for China", Journal of Chinese Economic and Foreign Trade Studies, Vol. 1 No. 3, pp. 200-213. https://doi.org/10.1108/17544400810912365

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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