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Title: CHINA VS VIETNAM : AN ANALYSIS OF HOW CHINA LOST ITS COMPARATIVE ADVANTAGE TO VIETNAM
Authors: Jatin Bhatnagar, Puneet Bhatnagar and Satvik Rastogi
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JATIN BHATNAGAR , PUNEET BHATNAGAR and SATVIK RASTOGI 1,3. Delhi Technological University, New Delhi, Delhi 110016, India 2. Christ University, Lavasa, Maharashtra 412112, India
MLA 8 BHATNAGAR, JATIN, et al. "CHINA VS VIETNAM : AN ANALYSIS OF HOW CHINA LOST ITS COMPARATIVE ADVANTAGE TO VIETNAM." Int. j. of Social Science and Economic Research, vol. 3, no. 12, July 2021, pp. 2197-2210, doi.org/10.46609/IJSSER.2021.v06i07.013. Accessed July 2021. APA 6 BHATNAGAR, J., BHATNAGAR, P., & RASTOGI, S. (2021, July). CHINA VS VIETNAM : AN ANALYSIS OF HOW CHINA LOST ITS COMPARATIVE ADVANTAGE TO VIETNAM. Int. j. of Social Science and Economic Research, 3(12), 2197-2210. Retrieved from doi.org/10.46609/IJSSER.2021.v06i07.013 Chicago BHATNAGAR, JATIN, PUNEET BHATNAGAR, and SATVIK RASTOGI. "CHINA VS VIETNAM : AN ANALYSIS OF HOW CHINA LOST ITS COMPARATIVE ADVANTAGE TO VIETNAM." Int. j. of Social Science and Economic Research 3, no. 12 (July 2021), 2197-2210. Accessed July, 2021. doi.org/10.46609/IJSSER.2021.v06i07.013.
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Abstract: The purpose of this research is to analyse the reasons behind China’s loss of comparative advantage to Vietnam in the technology sector, its implications at economic and social level and to understand what it means for the Chinese economy in the global scenario. For the purpose of this research, we have collected data on exports/imports between Vietnam and China along with Vietnam and United States of America. We are going to analyse how China’s dumping policy combined with Vietnam’s improvement in the following dimensions: ease of doing business, educated human resource and FDIs in Vietnam from China and the United States. The main aim of this research to analyse the impact of dumping on comparative advantage. For this purpose, we are going to run a regression analyse to analyse the correlation between export from China to US and the quantity of exports from Vietnam to US before/during/after the antidumping laws administered by the Trump government. Through our research, we concluded that the quantity of exports met a negative trend in China and a positive trend in Vietnam during the sanction period. Moreover, there was significant negative correlation between the two variables which, in turn, points to the transfer of comparative advantage from China to Vietnam. This comparative advantage was short-lived as the exports of China got back on-track after the removal of sanctions. However, this rise in Chinese exports did not negatively affect the Vietnamese exports to the United States of America. Moreover, there was significant positive correlation between the two trends during the year 2019 which in turn states that the intensity of positive correlation between the two variables throughout the year outshined the negative correlation between the two variables during the sanction period.

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