• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2022 > Volume 13 Number 3 (Jun. 2022) >
IJTEF 2022 Vol.13(3): 76-81 ISSN: 2010-023X
DOI: 10.18178/ijtef.2022.13.3.728

A Longitudinal Analysis of the Comparative Advantage of Three Key Industries in Mexico, Vietnam, and Japan under Agreements for Trans-Pacific Partnership

Juan José Cabrera Lazarini and Alexander Wollenberg

Abstract—The overall purpose of this paper is to identify commercial opportunities between Mexico, Vietnam, and Japan in three industries - pharmaceutical, automotive and agroindustry by tracking the development of comparative advantages over the past decade in which these countries were part of various free trade agreements, including the Pacific Alliance (only Mexico and three other Latin American countries), the Trans-Pacific Partnership (TPP) and later the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); both of the latter included all three - Japan, Mexico, and Vietnam. We used the concept of revealed comparative advantage (RCA) as the analytical framework. As new free trade agreements emerge, it is important to maximise the flow of goods and services among the countries involved. Therefore, it is imperative to define a systemic process to identify potential trade opportunities. The findings indicate that the conclusion of the TPP caused certain sectors to gain and certain sectors to lose relative comparative advantage, which would imply necessary structural changes for countries to invest in their competitive sectors. For example, Vietnam significantly lost comparative advantage in its agricultural sector relative to Mexico’s following the launch of the TPP, which means Mexico could develop its agricultural sector further to support trade with Vietnam. On the other hand, the competitiveness of Vietnam’s pharmaceutical industry relative to Mexico’s has remained little changed, meaning that both countries should continue to focus resources and investments in the pharmaceutical industry relative to the bilateral trade volume between the two countries.

Index Terms—Emerging markets, pacific alliance, transpacific partnership; global value chains, productivity, revealed comparative advantage.

Juan José Cabrera Lazarini is with Tecnológico de Monterrey, Department of International Business and Logistics, Querétaro, México (e-mail: jcabrera@tec.mx).
Alexander Wollenberg is with Khalifa University, Department of Humanities and Social Sciences, Abu Dhabi, UAE (e-mail: alexander.wollenberg@ku.ac.ae).

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Cite: Juan José Cabrera Lazarini and Alexander Wollenberg, "A Longitudinal Analysis of the Comparative Advantage of Three Key Industries in Mexico, Vietnam, and Japan under Agreements for Trans-Pacific Partnership," International Journal of Trade, Economics and Finance vol.13, no.3, pp. 76-81, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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