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Comparative advantage and Australia-China bilateral trade.
- Article from:
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Economic Papers - Economic Society of Australia
- Article date:
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March 1, 2008
- Author:
- Sheng, Yu; Song, Ligang
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Copyright informationCOPYRIGHT 2008 Economic Society of Australia. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Bilateral trade between Australia and China has expanded in recent years. This paper examines the determinants of bilateral trade at the two-digit commodity level using a modified gravity model with explicitly specified revealed comparative advantage incorporated. This methodology allows us to explore how the relative comparative advantage of Australia and China to the world, mirroring their individual pattern of factor endowments, affects the pattern of trade between the two countries and to identify whether there exists a kind of complimentarity international specialisation between the two countries against the backdrop of each country's booming trade with the rest of the world. Key ...
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