Journal of Dali University ›› 2023, Vol. 8 ›› Issue (3): 15-21.DOI: 10. 3969/j. issn. 2096-2266. 2023. 03. 003

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From Comparative Advantages to Competitive Advantages A Review of International Labor Division and Trade Theory

Yao Shujie1 Meng Dan2   

  1. 1. School of Economics, Yunnan University, Kunming 650500, China; 2.School of Economics, Guizhou University, Guiyang 550025, China
  • Received:2022-08-23 Revised:2022-09-18 Online:2023-03-15 Published:2023-03-14

Abstract:

The global flow of production factors has provided an opportunity for latecomer firms in developing countries to embed in the global value chain and comparative advantages and competitive advantages determine the position of enterprises in the value chain. The article analyzes the existing literature from three aspects comparative advantage theory competitive advantage theory and their mutual relations to expound the theoretical viewpoints contributions and shortcomings. It is concluded that the comparative advantages and the competitive advantages are not alternative but complementary and the research on international division of labor and trade theory has experienced a gradual integration from comparative advantages to competitive advantages.

Key words:

comparative advantages, competitive advantages, research review

CLC Number: