EconPapers    
Economics at your fingertips  
 

Revealed comparative advantage and the alternatives as measures of international specialization

Keld Laursen ()

Eurasian Business Review, 2015, vol. 5, issue 1, 99-115

Abstract: This paper provides an analysis of Balassa’s ‘revealed comparative advantage’ (RCA). It shows that when using RCA, it should be adjusted such that it becomes symmetric around its neutral value. The proposed adjusted index is called ‘revealed symmetric comparative advantage’ (RSCA). The theoretical discussion focuses on the properties of RSCA and empirical evidence, based on the Jarque–Bera test for normality of the regression error terms, using both the RCA and RSCA indices. We compare RSCA to other measures of international trade specialization including the Michaely index, the Contribution to Trade Balance, Chi Square, and Bowen’s Net Trade Index. The result of the analysis is that RSCA—on balance—is the best measure of comparative advantage. Copyright Eurasia Business and Economics Society 2015

Keywords: Revealed comparative advantage; International specialization; C43; F14 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s40821-015-0017-1 (text/html)
Access to full text is restricted to subscribers.

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:spr:eurasi:v:5:y:2015:i:1:p:99-115

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-04-09
Handle: RePEc:spr:eurasi:v:5:y:2015:i:1:p:99-115