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The Research on Comparative Advantage Structure of Sino-Japan Trade

Author: QiLi
Tutor: HuFang
School: Wuhan University
Course: International trade
Keywords: China Japan product structure of trade revealed comparative advantage reasons
CLC: F753.13
Type: Master's thesis
Year: 2005
Downloads: 630
Quote: 3
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Abstract


China and Japan are two adjoint big countries of east Asia. China is a typicaldeveloping country, and Japan is a typical developed country. To each other, theeconomic association between them is very important. As an indispensable part ofeconomic association, trade is good for their economy development. Since Chinesereform and opening-up, trade increases rapidly between two countries. From 1980 to2004, the volume of trade of two countries rose to 167.89 billion U.S. dollars from 89hundred million U.S. dollars, increased nearly 20 times. To China, create capitalsource for Chinese economy development with the trade of Japan, having increasedemployment, the more important thing is that the imports and exports structure andindustrial structure of our country are improved. At initial stage of Sino-Japan trade,China exported the primary product and raw materials mainly, imported the industrialmanufactured goods. For the economic development of more than 20 years, theindustrial structure of China has been improved a lot. The trade goods of Sino-Japantrade are being developed to industrialization. This thesis uses revealed comparativeadvantage, utilize RCA index to analyses to the trade structure from 1994 to 2002 ofSino-Japan trade. The conclusion drawn is in these 9 years, China has the advantageof revealed comparative advantage and comparing on the animal, the plant, food,beverage, mineral products, the woodwork, fabrics, instrument and apparatus. Andthese comparative advantages of these seven major kinds of goods have the tendencyto strengthen. This thesis has carried on concrete current situation analysis to theseseven major kinds of goods trade. Then analyses the factors influence Sino-Japantrade. These factors are mainly the economic growth of two countries, the industrialstructure of two countries, investment in China from Japan, etc. Look forward to thetrade prospects of Sino-Japan trade at the end.

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