Abstract: This paper studies the influence of product connection on the structural evolution of regional comparative advantages in China by making use of the BACI global trade database and China customs database from 2000 to 2006. The findings indicate that though the research period is not long enough, the structures of the comparative advantages in different regions have experienced significant changes during this period. Only 50 percent of the region-product combinations which had comparative advantages in 2000 still held comparative advantages in 2006, while 10 percent of the region-product combinations which had no comparative advantage in 2000 acquired comparative advantages in 2006. Product connection is an important factor which can explain the changes of comparative advantage structure. After controlling the fixed effects between the 6-digit products or 4-digit products and the regions, if one product had a closer relation with the other products exported by the same province in 2000, this product would have higher probability to become a product with comparative advantages in 2006.

Key words: degree of product connection; comparative advantage; industry structural evolution