TITLE:
Ricardian Theorem Reality; Assessment of Sino-Tanzania Trade 2015-2019
AUTHORS:
Nyagoga Lucy Michael
KEYWORDS:
Law of Comparative Advantage, R.C.A, Sino-Tanzania Bilateral, Export-Import
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.9 No.4,
April
27,
2021
ABSTRACT: China
has suited a noteworthy economic partner position in African countries,
specifically Tanzania. Consequently, this research is aiming at determining the
reality of the Ricardian theorem of comparative advantage by assessing its applicability
to 21st Century International trade practice particularly the Sino-Tanzania
bilateral trade from 2015 to 2019. To find out if Sino-Tanzania bilateral trade
resembles the Ricardian theorem, the classical Balassa index (RCA), import and
export intensity indexes were used to establish the revealed comparative
advantage by-products between Tanzania and China in their bilateral trade. With
the aid of International trade data obtained by the United National conference
of Trade and Development (UNCTAD), (World Trade Organization) WTO and the
Observatory of Economic Complexity (O.E.C.). The Balassa index, as well as
import and export indexes, carried out some
statistical tests grounding on both export and import merchandise trade
(Standard International Trade Classification (SITC), Revision 3) related
products; the study results established confirm the comparative advantage
theory application in 21st Century reality particularly in
Sino-Tanzania bilateral trade in the timeline of 2015-2019 import-export
trade.