Pop-up English-Chinese

Evolution of the comparative advantage of China’s agricultural products from 1995 to 2013

XU Wei1 LU Wencong1

(1.China Rural Development Institute, Zhejiang University)

【Abstract】This paper examines the empirical dynamics of comparative advantage of China’s agricultural products in the period of 1995– 2013. Based on the HS 6-digit trade data from CEPII–BACI database, this paper uses the distribution dynamics approach to quantify the magnitude of changes in comparative advantage and further investigates whether these changes have been towards technologically more sophisticated or higher quality products. We found that the comparative advantage of Chinese agricultural products exibited substantial volatility, mainly characterized by declining comparative advantages in most of the products with previous comparative advantages, with a larger degree than other major exporting countries. In particular, the declining trend was accelerated after China’s accession to the WTO. In 2013, China had comparative advantage in only 14.5% of the agricultural products. With a low probability of improving its original comparative disadvantage and acquiring new comparative advantage, China’s comparative advantage of agricultural products remains in low sophistication and low quality products, and slow in introducing higher value added products.

【Keywords】 comparative advantage of agricultural products; distribution dynamics approach; mobility of comparative advantage; technological sophistication; product quality; Comparative Advantage of Agricultural Products; Distribution Dynamics Approach; Mobility of Comparative Advantage; Product Sophistication; Product Quality;

【DOI】

【Funds】 Key Project of Natural Science Foundation of Zhejiang Province (LZ13G030002)

Download this article

    Footnote

    [1]. (1) Due to limitation of space, this paper does not show the results in detail, and interested readers can acquire them from the author. [^Back]

    [2]. (2) Due to limitation of space, this paper does not show the results in detail, and interested readers can acquire them from the author. [^Back]

    [3]. (3)Due to limitation of space, this paper does not show the results in detail, and interested readers can acquire them from the author. [^Back]

    References

    Cheng, G., Management World (管理世界), (11): 85–96 (2004).

    Peng, T. & Cheng, G. Journal of Agrotechnical Economics (农业技术经济), (1): 9–15 (1999).

    Yan, G., Chen, L. & Liu, C. Journal of International Trade (国际贸易问题), (4): 17–22 (2004).

    Yin, Z. & Tian, T. Issues in Agricultural Economy (农业经济问题), (1): 78–85 (2013).

    Balassa, B., (1965) “Trade Liberalisation and Revealed Comparative Advantage,” Manchester School 33(2), 99–123.

    Dalum, B., Laursen K. and Villumsen, G. (1998) “Structural Change in OECD Export Specialization Patterns: De–Specialization and ‘Stickiness’,” International Review of Applied Economics 12(3), 423–443.

    Feenstra, R., and Romalis, J. (2014) “International Prices and Endogenous Quality,” Quarterly Journal of Economics 129(2), 477–527.

    Hausmann, R., Hwang, J. and Rodrik, D. (2007) “What You Export Matters,” Journal of Economic Growth 12(1), 1–25.

    Hausmann, R. and Klinger, B. (2008) “South Africa’s Export Predicament,” Economics of Transition 16(4), 609–637.

    Kemeny, T. (2011), “Are International Technology Gaps Growing or Shrinking in the Age of Globalization,” Journal of Economic Geography 11(1), 1–35.

    Proudman, J. and Redding, S. (2000) “Evolving Patterns of International Trade,” Review of International Economics 8(3), 373–396.

    Regmi, A., et al. (2005) “Market Access for High–Value Foods,” US Department of Agriculture, Economic Research Service.

    Shorrocks, A. F. (1978) “The Measurement of Mobility,” Econometrica 46(5), 1013–1024.

    Xu, B. (2010) “The Sophistication of Exports: Is China Special?” China Economic Review 21(3), 482–493.

This Article

ISSN:1002-4670

CN: 11-1692/F

Vol , No. 09, Pages 3-15

September 2016

Downloads:1

Share
Article Outline

Abstract

  • Introduction
  • 1 Research methods and data descriptions
  • 2 Empirical research results
  • 3 Conclusions and policy enlightenment
  • Footnote

    References