Vietnam's comparative advantage in exporting the processed products

Abstract

     This paper aims at investigating the patterns and dynamics of Vietnam s comparative advantage in exporting the processed products. In this study, the author used RCA (revealed comparative advantage) index, Galtonian regression method, and transition probability matrix and mobility indices. The findings show that 1) there was a significant change in the export pattern of Vietnam's processed products; 2) on average, Vietnam's comparative advantage in exporting the processed products has weakened: 3) there have been changes in the rankings of RCA index over the years; 4) the industries with no initial comparative advantage (Class a) and those with a strong initial comparative advantage (Class d) showed a high degree afpersistence, while the industries with a weak initial comparative advantage (Class b) and those with a medium initial comparative advantage (Class c) exhibited a moderate degree of mobility; 5) the processed products experienced an upward trend in the degree of specialization; and 6) the export composition of Vietnam s processed products is diversified in nature.