Revealed Comparative Advantage Analysis Based on VEC models in Chinese Capital-technology-intensive Industry

Abstract

Abstract. We investigate the relationships among revealed comparative advantages of Capital-technology-intensive industry, GDP per capita and households deposits in China. With the non-stationary sequences of global Capital-technology-intensive products' exports, we constructed the vector error correction model with serial correlation, and found that revealed comparative advantage, GDP per capita and annual increase of RMB savings deposits of Chinese residents are not stable series, while after second difference to three series, they were stable series. The revealed comparative advantage index are from 0.37 to 0.78, and revealed comparative advantage index, GDP per capita and annual RMB increase are with cointegrated. The result has showed that it will make non-equilibrium state back to equilibrium by coefficient of 0.24 in long-term.