Title: The changing pattern of export advantage between USA and China from 1992 to 2018: analysis of comparative advantage in the machinery and transportation equipment sector

Authors: Anamika Datta; Kumer Pial Das

Addresses: Illinois State University, Normal, Illinois, USA ' University of Louisiana at Lafayette, Lafayette, Louisiana, USA

Abstract: Trade liberalisation and technological progress have changed the pattern of export competitiveness of USA and China. A comprehensive analysis of comparative advantage of these countries over a long time reveals their competitive positions in global business. The main objective is to compare the export comparative advantage of the machinery and transportation equipment sector of USA and China from 1992 to 2018 using the Normalised Revealed Comparative Advantage index on one and two-digit Standard International Trade Classification code. It also identifies the changes in export destination of USA and China for these products. Results show that China has higher comparative advantage than USA in office machinery and automatic data-processing machines, electrical machinery, general industrial machinery and equipment. China is diversifying export destinations to developed nations who were USA's major export partners. This study will enable concerned stakeholders to identify the potentiality of product sub-categories for each country and invest resources accordingly.

Keywords: comparative advantage; normalised revealed comparative advantage; export value; export advantage issue; standard international trade classification; USA; China; export competitive advantage; export destination.

DOI: 10.1504/IJCM.2021.10042189

International Journal of Comparative Management, 2021 Vol.4 No.1, pp.36 - 52

Received: 02 May 2021
Accepted: 21 May 2021

Published online: 04 Jan 2022 *

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