Similarity in trade structure: An evidence from ASEAN + 3

The present paper aims to explore the competition in exports among ASEAN +3 members by applying the export similarity index for the disaggregation export data from 1990 to 2014. We also discuss the changes of comparative advantage of ASEAN + 3's exports through the revealed comparative advantage index (RCA) and its relation with similarity index. The results find that export similarity varies among ASEAN+3 member states over the period 1990-2014. Second, we find evidence of several communities of export competition. In particular, four countries, notably Malaysia, Singapore, Japan and Korea, durably show the highest competition level, mainly in the sectors of transistors and telecom equipment. Third, the revealed comparative advantage seems to be the key factor defining the similarity level of exports. Lastly, the revealed comparative advantage analysis allows us to verify the Ricardo's theory and New Trade theory in the context of free trade