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

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.