Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329113 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 12 [Issue:] 7 [Article No.:] 187 [Year:] 2024 [Pages:] 1-21
Publisher: 
MDPI, Basel
Abstract: 
Currently, international trade has evolved into international production fragmentation captured in GVCs. Countries must enhance intermediate exports in comparative advantage sectors to increase their trade in value-added (TVA) in global production chains. However, traditional measurements of revealed comparative advantage (RCA) based on gross exports need to be updated due to overvaluation, double counting, and implicit distortions in international trade. This study uses a new comparative advantage measure, 'new revealed symmetric comparative advantage' (NRSCA). Using a dynamic General Method of Moment (GMM) approach, we investigate the role of comparative advantage in driving TVA regarding backward and forward linkages and examine the impact of the COVID-19 pandemic. We use data from the current Asian Development Bank multi-regional input-output database for 2010-2020. Our findings reveal that comparative advantage significantly impacted international TVA, along with the support of quality institutional services in each country. Implementing a new comparative advantage measure, NRSCA, provided accurate estimation results to overcome the overvaluation problem. Moreover, the COVID-19 pandemic disrupted value-added trade.
Subjects: 
comparative advantage
dynamic GMM model
multi-regional input output
pandemic
trade in value added
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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