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Structural transformation and specialization patterns in the product space: assessing China and India

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Resumo:This paper assesses the specialization patterns of China and India, studies the goods that are related to the core of capabilities of the countries, and then investigates the products that allow the referred countries to improve the average “income content” of their export basket. Following Hausmann et al. (2007) we compute indicators of “income content” of a country's export basket and measures of “density” which assess the likelihood of a country developing comparative advantage in one good given the current specialization pattern. The results obtained suggest that both countries are making their structural transformation into two main sectors, “Machinery” and “Chemicals, plastics, rubbers”, are becoming specialized in higher “income content” goods, and are abandoning traditional sectors like “Footwear and Clothing” and agricultural products.
Autores principais:Neves, Rui Jorge da Costa
Assunto:Revealed comparative advantage Structural transformation Upscale opportunities
Ano:2012
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:This paper assesses the specialization patterns of China and India, studies the goods that are related to the core of capabilities of the countries, and then investigates the products that allow the referred countries to improve the average “income content” of their export basket. Following Hausmann et al. (2007) we compute indicators of “income content” of a country's export basket and measures of “density” which assess the likelihood of a country developing comparative advantage in one good given the current specialization pattern. The results obtained suggest that both countries are making their structural transformation into two main sectors, “Machinery” and “Chemicals, plastics, rubbers”, are becoming specialized in higher “income content” goods, and are abandoning traditional sectors like “Footwear and Clothing” and agricultural products.