The Leap of Comparative Advantage Trap in Guangzhou-Based on the Perspective of Global Value Chain

Ji Yan Wu, Zi Jian Luo and Zhi Huang Huang

Applied Economics and Finance, 2019, vol. 6, issue 1, 74-83

Abstract: This paper analyzes the situation and reasons of the trap of comparative advantage in Guangzhou, and proposes some strategies on how to leap the trap of comparative advantage. Firstly, based on the perspective of global value chain, this paper analyzes the status of Guangzhou in the global value chain through RCA (revealed comparative advantage index) and RTV (revealed technology added value index), and illustrates the situation of Guangzhou in the trap of comparative advantage. Secondly, the reasons why Guangzhou is into comparative advantage trap are analyzed from three aspects, capital, labor force and technology. Thirdly, in view of the main reasons, we seek some effective strategies to leap the comparative advantage trap, promote the transformation and upgrading of enterprises in guangzhou into innovative enterprises, and lead to the promotion of the competitiveness of Guangzhou in the globalization division of labor.

Keywords: comparative advantage trap; global value chain; competitive advantage (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:rfa:aefjnl:v:6:y:2019:i:1:p:74-83

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