Contrasting Revealed Comparative Advantages when Trade is (also)in Intermediate Products

Hubert Escaith

MPRA Paper from University Library of Munich, Germany

Abstract: The paper reviews and compare a selection of existing and new alternative indicators of Revealed Comparative Advantages, with a special emphasis on trade in intermediate products. The research adopts a statistical approach for both its theoretical and its analytical facets. The formal concepts are those used —inter alia—in statistical inference and information theory. The empirical part applies Exploratory Data Analysis on trade and production data from OECD’s Inter-Country Input-Output Tables. International Input-Output data introduce a new dimension in the definition of comparative advantages: upstream or downstream competitiveness. It is shown that One-Way and Two-Way trade indices capture different aspects of trade competitiveness, and are complementary. Comparative advantages being relative by definition, ordinal or dichotomous classifications provide more robust results than the absolute cardinal indices. Even with dichotomous indicators, the classification of best performers remains blurry, fuzziness varying greatly among product categories.

Keywords: international trade; relative comparative advantages; intermediate inputs; indices; exploratory data analysis (search for similar items in EconPapers)
JEL-codes: C82 F12 F14 (search for similar items in EconPapers)
Date: 2020-10-19
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/103666/1/MPRA_paper_103666.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:103666

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).