EU and China’s comparative advantage, trade complementarity and trade specialization dynamics in agricultural products

Junshi Li () and Yao Pan ()
Additional contact information
Junshi Li: Dublin Business School
Yao Pan: Zhongnan University of Economics and Law

Asia Europe Journal, 2023, vol. 21, issue 3, No 4, 379 pages

Abstract: Abstract This paper aims to analyse the comparative advantage of selected agricultural products for both EU and China in the context of EU-China bilateral trade and explore how the trade specialization changes along with the economic development based on the data between 2001 and 2017. First, we obtain the static results from both a comparative advantage perspective and a trade complementarity perspective. We then analyse three types of trade specialization dynamics by using the OLS regression and Markov transition probability matrix from a more dynamic perspective. Results show that EU’s comparative advantage includes meat products, dairy products, animal originated products, preparations of cereals or milk products, beverages, wool and vegetable textile fibres. China has a comparative advantage in fish, animal originated products, edible vegetable, lac, gums, resins, vegetable, plaiting materials, preparations of vegetables, silk, wool and vegetable textile fibres. We also find that both EU and China have unstable trade specialization for their agricultural products trade and we give policy implications for EU-China bilateral trade based on the results.

Keywords: Agricultural trade; Comparative advantage; EU-China; Trade complementarity; Trade specialization; F10; F14; F60 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10308-023-00675-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:kap:asiaeu:v:21:y:2023:i:3:d:10.1007_s10308-023-00675-9

Ordering information: This journal article can be ordered from
http://www.springer. ... es/journal/10308/PS2

DOI: 10.1007/s10308-023-00675-9

Access Statistics for this article

Asia Europe Journal is currently edited by Ulrich Volz and Lay Hwee Yeo

More articles in Asia Europe Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().