The Evolution of Measurement Methods of Comparative Advantage and New Trends in IntraProduct International Specialization

Abstract

In the development and the evolution of international trade theory, comparative advantage has always been a core concept. A great deal of research pertains to the calculation methods of comparative advantage. However, most previous research on measurement methods of comparative advantage is mainly based on a country's import/export volume of a specific industry or product. Under the circumstances of contemporary intra-product international specialization, previous measurement methods are not appropriate. It is imperative to improve original measure methods of comparative advantage through stripping overseas contents of exports, and putting forward a new measurement index reflecting the domestic contents of export.