Study on Dynamic Evolution of Product Space

Abstract

Abstract:

The extant researches on product space point out that the heterogeneity of the product space determines the evolution path of the economies' comparative advantages, and then leads to different economic performance in different countries, which challenges the traditional theory on explaining the mechanism of competition. Unlike these researches that focus on the different structural characteristics in different countries from a static perspective, this paper explores the product space from a dynamic evolution perspective, including the nature, extent and time of changes. What's more, we intend to compare the characteristics of product space among different countries across different time period. We show that product space has a dual attribute. One is "stability", and another is "slow development", which has formed the "traditional product space" and "new product space". By comparing the characteristics of product space between the developing countries, including China and India, with the developed countries, including America and Germany, we also find out that the product spaces of developed countries are more competitive by occupying the dense area of product space, which means the de-veloping countries can develop more products that have revealed comparative advantage to increase the density of product space to get the upgrading abilities.

Key words: traditional product space, new product space, dynamic evolution

Zhang Ting, Liu Linqing, Mei Shiye. Study on Dynamic Evolution of Product Space[J]. , 2018, 30(9): 12-22.

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