Media Trend: Berkala Kajian Ekonomi dan Studi Pembangunan
Vol 14, No 1 (2019): Maret

The Dynamics of Changing Comparative Advantage in ASEAN-4: Flying Geese Model

Iis Dwi Permatasari (Faculty of Economics and Business, University of jember, Jember, Indonesia)
Regina Niken Wilantari (Faculty of Economics and Business, University of jember, Jember, Indonesia)
Endah Kurnia Lestari (Faculty of Economics and Business, University of jember, Jember, Indonesia)



Article Info

Publish Date
02 Apr 2019

Abstract

Globalization makes all the economic activities of the country becomes more open. Trade openness leads to increasingly fierce competition conditions and then raises a competitiveness. This competitiveness is the key for each country to develop products to be exported. Competitiveness is one of the criteria that determine the success of a country in international trade. This study aims to analyze the dynamics of changes in comparative advantages occurring in ASEAN-4 countries (Indonesia, Philippines, Malaysia and Thailand) in 1989 to 2016 using Product Mapping method which combines calculations between RSCA and TBI in each product classification. The results show that each country has different comparative advantages, including Indonesia which has a comparative advantage for unskilled-labor product classification (TPT and garment) and on primary product (oil and its derivative products) and is the leader for both products. Then the Philippines has a comparative advantage for the classification of technology intensive products (electronics) which is also a leader in the product. In addition, the results of research also found a change in comparative advantage as well as product specialization, including Thailand which no longer has a comparative advantage on human-capital intensive products (rubber and derivative products) but still a net-exporter. So it is with Indonesia who no longer has a comparative advantage on natural-resource products (lead) but still a net-exporter.

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Journal Info

Abbrev

MEDIATREND

Publisher

Subject

Economics, Econometrics & Finance

Description

Economic Development Program provides a platform for researchers who want to publish their research results through "MEDIATREND", the periodical Journal of economic studies and development studies. Journal "MEDIATREND" published two (2) times a year in March and October and can be accessed online. ...