The Evolving Comparative Advantages of the World Economy: An International Input-Output Analysis

The fragmentation of production into Global Value Chains (GVCs) necessitates a re-evaluation of comparative advantage, moving beyond traditional metrics based on final goods. While many studies focus onnet value-added, the specific role of economies as upstream suppliers remains underexplored. This study interrogates the spatial and sectoral reconfiguration of the world economy from 1995 to 2020 by operationalizing a targeted analytical framework focused on intermediate production stages. Utilizing the OECD's Inter-Country Input-Output (ICIO) database, a Revealed Comparative Advantage index computed exclusively from intermediate goods trade (RCA-INT) is employed to precisely isolate and map the specialization of economies as suppliers. This primary indicator is analyzed in conjunction with GVC participation indices and production chain length to conduct a systematic comparative assessment of the Asia-Pacific, European, and North American production systems.The empirical analysis elucidates a fundamental realignment of manufacturing capabilities toward the Asia-Pacific, which consolidated its position as the central node in global electronics and automotive value chains. This industrial reconfiguration is juxtaposed with the persistent comparative advantage of resource-endowed economies in agriculture and the entrenched specialization of advanced economies in knowledge-intensive services. Furthermore, the rapid deepening of GVC integration is found to have decelerated post-2008, a trend consistent with the “slowbalization” hypothesis.The study demonstrates that an intermediate goods-based RCA provides a granular mapping of contemporary economic geography, revealing the architecture of supplier networks and how distinct architectures of regional integration systematically condition patterns of industrial specialization. The findings thus contribute a crucial empirical foundation for industrial strategies aimed at enhancing economic resilience within an increasingly fragmented global order.