Economics at your fingertips  

Comparative advantages in U.S. bilateral services trade with China and India

Hiranya Nath (), Lirong Liu and Kiril Tochkov ()

Journal of Asian Economics, 2015, vol. 38, issue C, 79-92

Abstract: Using bilateral trade data for 16 service categories, this paper examines the patterns, evolution, and determinants of comparative advantage (CA) in U.S. services trade with China and India from 1992 to 2010. The results indicate that the U.S. has a CA in most services, except in more traditional ones, such as travel and transportation. However, India, and more recently China, gained a CA in modern services, such as computer and information services during the period considered in this paper. An examination of the distributional dynamics indicates that the likelihood of U.S. gaining CA over an initial position of comparative disadvantage (CDA) in its trade of a particular service with India is higher than the probability of losing its initial dominance. In contrast, the U.S. CA or CDA vis-à-vis China exhibits high levels of persistence over time. The regression results suggest that relative abundance of sector-specific labor, human capital, and FDI inflows have been significant sources of CA for the U.S. over both China and India.

Keywords: Services trade; Comparative advantage (CA); Comparative disadvantage (CDA); Revealed symmetric comparative advantage (RSCA); Trade balance index (TBI) (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Comparative Advantages in U. S. Bilateral Services Trade with China and India (2015) Downloads
Working Paper: Comparative Advantages in U. S. Bilateral Services Trade with China and India (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.asieco.2015.04.002

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-03-26
Handle: RePEc:eee:asieco:v:38:y:2015:i:c:p:79-92