Research on the Comparative Advantage of Export Commodities in Taiwan During 2000–2014

Abstract

Taiwan is difficult to further expand the scope of its export market in recent years. This paper made an empirical analysis about the comparative advantage of the export commodities in Taiwan during 2000-2014. The comparative advantages were analyzed by using the revealed comparative advantage index, trade competitiveness index and intra-industry trade index. And the results show as follows: there are comparative disadvantages on the export trade of primary products in Taiwan, and the disadvantages are gradually deteriorating. Industrial manufactured goods generally get rid of the comparative disadvantage, but they are still at a very weak advantage on the international competition. In Taiwan the overall comparative advantage of exports is not obvious. In order to further expand the exports, Taiwan needs to increase capital investment, enhance the core R&D capabilities and expand commodity trading network.