This study develops and calculates the Comparative Advantage (CA) indices between
eight selected Trade Deficit (TD) countries (China, France, Germany, Malaysia, Singapore,
Thailand, United Kingdom, United States of America ) in 4 selected TD goods categories
(542: - Medicaments incl. Vet; 759: - Office Equipment Parts/ Accessories; 764: - Telecoms
Equipment NES and 781: - Passenger Cars Etc.) and are all based on SITC-31 level of
aggregation. The CA analysis was conducted by calculating and observing the Balassa
Revealed Comparative Advantage Index (BRCAI), the Vollrath Revealed Export Advantage
Index (VRXAI), the Vollrath Revealed Import Advantage Index (VRMAI), the Vollrath
Revealed Trade Advantage Index (VRTAI) and the Vollrath Revealed Competitive Advantage
Index (VRCAI). In addition to the CA indices, the trade performance indices are analysed by
calculating and observing the Trade Specialization Index (TSI), the Export Propensity Index
(XPI), the Import Penetration Index (MPI) and the Export/ Import Ratio (XMR). The overall
results indicate that Australia records a Revealed Comparative Disadvantage (RCD) in all the
selected categories. Furthermore, there is evidence that the X in all categories is increasing
overtime as a proportion of the domestic output and the M competition for the Australian
producers in all categories is increasing.