The Complementarity Analysis of Comparative Advantage of AddValue in Sino-Russian Sub-Sectors Based on Global Value Chain
Journal Title: Journal of Social Economics - Year 2016, Vol 3, Issue 2
Abstract
Under the background of the intra-product specialization, the comparative advantage calculated by industry's total exports is different from which calculated by domestic add-value in exports. This paper proposes a noncompetitive input-output method to measure the domestic value-added in export in Sino-Russian sub-sectors, and uses this method to modify the RCA index which is used to measure comparative advantage by industry total export volume, thus acquires VACA index. These two indexes are then used to measure the comparative advantage of Sino-Russian sub sectors in order to measure the complementary and competitive situation of them. In conclusion, for China, the result of RCA index exaggerates the comparative advantage of China's sub-sectors.While to Russia, just the opposite. Compared with Russia, China's domestic valueadded in export is relatively smaller. The industries with comparative advantages (S4/6/8/9 in China and S2/3/7/19 in Russia) in this two countries are non-overlapping, and these sectors have a strong complementary.
Authors and Affiliations
Lijun Jia, Jinlong Han
Keywords
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