The Analysis of Dynamic Comparative Advantage in trade between China,India and Africa.

摘要

Trade openness encourages developing countries to engage in international trade as it enhances the economy's ability to grow and develop.Over the years,developing economies have been doing much better in exports value than developed economies with China been one of the most important exporting nation.Africa is said to have the smallest share in world export but despite its low share,African export share to China has increased significantly as a result of Sino-Africa trade relationship.This paper develops insights into the structure of comparative advantage enjoyed by China and Africa trade in a comparative framework to India.The study observes the compar ative advantage in commodity sectors of the countries,their pattern of trade and their dynamic comparative advantage over the period1990-2015.The Balassa Revealed Comparative Advantage(BRCA)index was used to analyze the commodity sector and structure of their comparative advantage.China enjoys comparative advantages in manufactured goods and African countries enjoy comparative advantage in exports of natural resources.Africa ranks high in exports of raw materials such as ores and minerals products to China with minimum structural changes in other commodities over the years.China ranks high in exports of machineries and manufactured goods with maximum structural changes in commodities over the years.The Eaton Kortum(EK)model was used to analyze the degree of proximity to technological factor and other what other factors contribute to increased volume among countries.China is able to produce more standard goods as a result of proximity to technological progress and exports more commodities while Africa has less proximity to technology which reduces its ability to standardize its commodities for exports.The Gravity model revealed strategic partnership factor to be the mosy significant determinant of bilateral trade between China and Africa.The more bilateral trade agreements signed between China and Africa,the higher the volume of goods exported from China to Africa and vice versa.This study reveals maximum structural changes in China exports to Africa with China ranking high in miscellaneous manufactured goods and competitive to India in machineries exports.There are minimum structural changes in the exports of African goods to China and India over the years as the technological changes to advance standards of goods and quality is still relatively low.The market size has some effects on bilateral trade,but the strategic partnership variable and culture exchnage are more significant to the trade volume,showing China trade increasing rapidly to African countries based on signed trade and culture exchange.This paper concludes that there are changes in the structure of trade between China,Africa and India over the years.China continues to enjoy dynamic comparative advantage in manufacturing,technology intensive and capital intensive product exports.Africa enjoys dynamic comparative advantage in labor intensive resource products and India retains comparative advantage in manufacturing at a disaggregated level but continues to enjoys significant structural changes in agriculture allied products.

目录

声明

Dedication

Abstract

Table of Contents

Chapter 1：Introduction

1．1 Background

1．2 Trade to Africa

1．3 Significance of study

1．4 Aims and Objectives

1．5 Research Questions

1．6 Research Plan

Chapter 2：Literature Review

2．1 International Trade Theories

2．2 Comparative Advantage

2．3 Dynamic Comparative Advantage

2．4 Regional Comparative Advantage

2．4．1 Asia Regional Integration

2．4．2 African Regional Integration

2．4．3 Sino-Africa Trade

2．4．4 Sino-Africa Challenges and Barriers to Trade

2．5 International Trade and Economic Growth

Chapter 3：Methodology

3．1 The Eaton-Kortum Model

3．2 The Gravity Model Approach

3．3 Balassa Comparative Advantage Index

Chapter 4：An Empirical Analysis of Comparative

4．1 The EK model Analysis

4．2 The Gravity Model Analysis

4．3 The Analysis of Revealed Comparative Advantage

4．3．1 Manufacturing Sector and Commodity of China to Africa

4．3．2 Manufacturing Sector and Commodity of India to Africa

4．4 Structural changes across manufacturing sectors in China：1990-2015

4．4．1 Structural change across manufacturing sector in Africa：1990-2015

4．4．2 Structural change across manufacturing sectors in India：1990-2015

4．5 Revealed Comparative Advanatge According Factor Intensity

Chapter 5：Conclusion

Chapter 6：Policy Implication

Rererences

Appendix