Technological Intensity and Export Specialization in Asia: A Comparative Analysis of Japan, Korea, China and Taiwan

This paper examined structural changes in exportspecialization of Japan, South Korea, Taiwan, and Chinaat different levels of technological intensity. The studyfound significant differences across these Asian economies,with most pronounced changes for exports with high technologicalintensity. To account for the changing export specialization,the study applied the classical Ricardian modelof comparative advantages to export patterns of Japan andSouth Korea. We found that the export specialization ofJapan was mainly determined by differences in fixed effectsacross industrial sectors, with changes in relative labor productivitymuch less important. In contrast, changes in productivityturned out an essential factor for explaining therecent export specialization of South Korea.