Agriculture Reference
In-Depth Information
X
X
k
k
θ ≡ ≡
share of
k
in global exports of
s
goods
ww
s
ww
θ
RXS
i
K
s Balassa's revealed comparatve advantage.
RMS
j
k
has the same
structure, except that import rather than export data are used. In other
words, the index can be interpreted as being a trade-weighted measure
for sector
s
of the degree to whch exporter
i
's profile of comparative
advantages corresponds with the profile of comparative disadvantages for
mporter
j
. That is, this index depicts how specialisation in the commodity
composton of country
i
's exports matches the specalsaton n the
commodty composton of country
j
's mports.
A TCI equal to one represents a threshold, with a value greater (less) than
one showng a greater (lesser) level of complementarty n the composton
of what exporter
i
exports and what mporter
j
mports than what occurs
between the average pair of countries. Further, an upward-sloping TCI suggests
that the structural change is consistent with more efficient use of partner and
global resources. Such a change s lkely to be welfare enhancng.
Changng trends n trade complementarty between Chna and ASEAN
Figure 12.8 presents TCIs between ASEAN and China in food and live animals
(SITC0) for the period 1992-2005. As the figure shows, the value of the
TCI of ASEAN's exports and Chna's mports s always greater than that of
Chna's exports and ASEAN's mports. After a short perod of declne durng
1994-97, the TCI value for ASEAN's exports and China's imports increased
steadily from 1 in 1998 to 1.23 in 2005, indicating that there not only exists
complementarity in ASEAN's exports and China's imports, but that the
complementarity has been increasing since 1998.
In contrast, the TCI value for China's exports and ASEAN's imports
became less than 1 in 1994; since then, it has been fluctuating about 0.8
and 0.9. Ths mples that there s less complementarty n Chna's exports
and ASEAN's mports n food and lve anmals.
Figure 12.9 shows the TCI between China and ASEAN in all agricultural
commodities for the period 1992-2005. The TCI value for all agricultural
products n ASEAN's exports and Chna's mports s larger than that of
