comparative advantage

This study analyses the trade of Hungary and the Czech Republic with the European Union in 1997. After a general introduction, the focus turns to the extent of intra-industry trade (IIT) and its horizontal and vertical components. The extent of IIT is also analysed in light of the flows of ...

China's trade pattern is influenced not only by its over all comparative advantage in labor intensive goods but additionally by geography. We use two variants of the Eaton-Kortum (2002) model to review China's local comparative advantage. The idea predicts that China's share of export markets should grow most ...

A lot more than comparative advantage and free markets have already been at play in shaping China's export success. Govt policies have aided nurture domestic capabilities in consumer electronics along with other high level areas that could not likely allow us within their absence. Consequently, China has ...

In this paper we evaluate different measurement practices when calculating the human capital content of a country's net trade. The calculations are performed using a structural measure developed by Lundberg & Wiker (1997) that relates the average factor input requirements in exports relative to those in imports. We find the ...

Comparative advantage exists when a country has a margin of superiority in the production of a good or service i.e. where the opportunity cost of production is lower. The basic theory of comparative advantage was developed by David Ricardo. Ricardo's theory of comparative advantage was further developed by Heckscher, Ohlin and ...