A Gravity-Based Revealed Comparative Advantage Estimator
No 2017-05, Discussion Papers from School of Economics, The University of New South Wales
I propose a method of moments estimator of revealed comparative advantage based on a flexible specification of trade flows that is consistent with a large class of gravity models of international trade. I show that this estimator has many desirable properties. It is theoretically consistent with the classical notion of Ricardian comparative advantage and is easily computed, even for very large samples. Statistical inference is straightforward, and it is closely related to a commonly-used estimator in the gravity literature that is known to be robust to various forms of heteroskedasticity and measurement error common to trade data.
Keywords: Method of moments; pseudo-maximum likelihood; Poisson; Ricardian; RCA; index (search for similar items in EconPapers)
JEL-codes: F10 F11 F14 C13 C21 C55 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm, nep-int and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:swe:wpaper:2017-05
Access Statistics for this paper
More papers in Discussion Papers from School of Economics, The University of New South Wales Contact information at EDIRC.
Bibliographic data for series maintained by Hongyi Li ().