AN ANALYSIS IN COMPARATIVE ADVANTAGE IN MANUFACTURING SECTOR AS A DETERMINANT OF TRADE EXPANSION: THE INDONESIAN AND MEXICAN CASE 1989-2011

Miguel Angel Esquivias, Unggul Heriqbaldi

= http://dx.doi.org/10.20473/jeba.V23I22013.4527
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Abstract


The dynamic changes experienced in international trade in terms of volumes, varieties and destinations in
manufacturing goods suggests that a change in comparative advantage has occurred for industrial and developing
countries. The present study analyzes the impact of the dynamism in international trade in the change of
comparative advantage in manufacturing sector for the case of Mexico and Indonesia for the period of 1989-2011.
It was found that the trade pattern of Mexico has change significantly in the last 23 years turning into new
industrial activities, meaning a deep change in variety of products, human capital and technology intensity at
structural level. As for Indonesia the change was found to be also significant even though at less degree than
Mexico but with the particularity of keeping the traditional industries as the backbone of exports while developing
some new industries.
A good number of opportunities for trade expansion were found for Mexico and Indonesia since both countries
specialized in different variety of products under different factors intensities.
Keywords: Revealed Comparative Advantage, Manufacturing, Trade Balance, Factor Intensities, and
Products Mapping, International Trade.

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