Similarity in trade structure: Evidence from ASEAN + 3

Thi Nguyet Anh Nguyen, Thi Hong Hanh Pham and Thomas Vallee

The Journal of International Trade & Economic Development, 2017, vol. 26, issue 8, 1000-1024

Abstract: The present paper aims to explore the competition in exports among ASEAN + 3 members by applying the export similarity index for the disaggregation export data from 1990 to 2014. We also discuss the changes of comparative advantage of ASEAN + 3's exports through the revealed comparative advantage index and its relation with similarity index. First, the results support the idea that export similarity varies among ASEAN + 3 member states over the period 1990–2014. Second, we find evidence of several export communities. In particular, five countries, notably China, Japan, Malaysia, Singapore and South Korea, with the highest similarity index form an export community mainly in the electronic microcircuits and parts of office machines. Third, the revealed comparative advantage seems to be the key factor defining the similarity level of exports. Finally, the revealed comparative advantage analysis partly allows us to verify the Ricardo's theory and New Trade theory in the context of ASEAN + 3 trade integration.

Date: 2017
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Working Paper: Similarity in trade structure: Evidence from ASEAN + 3 (2017)
Working Paper: Similarity in trade structure: Evidence from ASEAN + 3 (2017)
Working Paper: Similarity in trade structure: An evidence from ASEAN + 3 (2017)
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DOI: 10.1080/09638199.2017.1331372

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