Revealed Comparative Advantage in Japan and the United States

Revealed Comparative Advantage in Japan and the United States

This paper examines the changing comparative advantage of Japan and the United States. Indices of revealed comparative advantage have been derived for 57 primary and 167 manufactured product categories. These indices have further been aggregated for 20 commodity groups. Data are further provided on high technology products. During the period 1967-1983 Japan`s pattern of specialization is found to have changed dramatically with Japan shifting from specialization in unskilled labor intensive goods to human capital intensive products while its comparative disadvantage increased in natural resources intensive products. The United Slates maintained its specialization in physical capital and human capital intensive goods while increasing its comparative advantage in natural resource intensive products. Both countries increased their comparative advantage in high techonlogy products.