Comparative advantage of various regions in the world economy
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Abstract
The study would like to make comparism in the international comparative advantages for the developing
economic structure concerning the capital, skilled and unskilled human resources of the main economies and
country-groups in order to realise the sustainable development. According to Salvatore, Dominic, who
emphasized some principles of theory of comparative advantage accompanying his opinions, namely most
nations would like to realise free trade for themselves in order to get better profit and price incomes and most of
them continue to impose many restrictions on international trade.
The US has the most favourable Revealed Comparative Advantage in the world economy, even against Japan
and EU in field of capital and skilled workers. After the US, Japan has more comparative advantage against the
EU. From three highly developed regions the EU is the last one. Based on the country – groups, in United States
the capital was 0.11, skilled 0.06 and unskilled -0.30. In European Union capital was 0.03, skilled 0.01, unskilled
-0.06, in the same time in Japan capital was 0.07, skilled 0.15 and unskilled was -0.50 according to field of
Revealed Comparative Advantages.
Also in spite that OPEC countries have somehow little more favourable positions than other developing
countries, they have so mush high level of unskilled workers and considerable less skilled workers. In Eastern
Europe including Russia, capital was - 0.08, skilled -0.31, unskilled 0.36. In OPEC capital was - 0.09, skilled -0.29, unskilled 0.45. Their position is little similar than the Eastern Europe, including Russia, in filed of
Revealed Comparative Advantages.
The data show that the highly developed countries can play role for the future sustainable development and
economic growth based on the skilled human resources, which help the innovation development. The innovation
development can not be realised without skilled human resources. Also free flow of four elements results in
decreasing of expanditures of production, including the labour force, as employee, finally takes possibility to
achieve higher level of work efficiancy with using skilled workers, advanced technology and R&D – research
and development - to ensure competitive position either on the world market or local markets.
economic structure concerning the capital, skilled and unskilled human resources of the main economies and
country-groups in order to realise the sustainable development. According to Salvatore, Dominic, who
emphasized some principles of theory of comparative advantage accompanying his opinions, namely most
nations would like to realise free trade for themselves in order to get better profit and price incomes and most of
them continue to impose many restrictions on international trade.
The US has the most favourable Revealed Comparative Advantage in the world economy, even against Japan
and EU in field of capital and skilled workers. After the US, Japan has more comparative advantage against the
EU. From three highly developed regions the EU is the last one. Based on the country – groups, in United States
the capital was 0.11, skilled 0.06 and unskilled -0.30. In European Union capital was 0.03, skilled 0.01, unskilled
-0.06, in the same time in Japan capital was 0.07, skilled 0.15 and unskilled was -0.50 according to field of
Revealed Comparative Advantages.
Also in spite that OPEC countries have somehow little more favourable positions than other developing
countries, they have so mush high level of unskilled workers and considerable less skilled workers. In Eastern
Europe including Russia, capital was - 0.08, skilled -0.31, unskilled 0.36. In OPEC capital was - 0.09, skilled -0.29, unskilled 0.45. Their position is little similar than the Eastern Europe, including Russia, in filed of
Revealed Comparative Advantages.
The data show that the highly developed countries can play role for the future sustainable development and
economic growth based on the skilled human resources, which help the innovation development. The innovation
development can not be realised without skilled human resources. Also free flow of four elements results in
decreasing of expanditures of production, including the labour force, as employee, finally takes possibility to
achieve higher level of work efficiancy with using skilled workers, advanced technology and R&D – research
and development - to ensure competitive position either on the world market or local markets.
Article Details
How to Cite
Rashid, Al-Boainin Mubarak. 2013. “Comparative Advantage of Various Regions in the World Economy”. Review on Agriculture and Rural Development 2 (1):498-503. https://iskolakultura.hu/index.php/rard/article/view/13361.
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