Revealed comparative advantage: What is it good for?

French, Scott

doi:10.1016/j.jinteco.2017.02.002

Cited by 91 publications

(33 citation statements)

References 47 publications

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“…Equation (1) is used to compute the RCA index. RCA index is widely used in the export analysis (Brakman & Van Marrewijk, 2017;French, 2017), but it mainly compares export performance of products of a particular country to the global exports of particular products. In this research export structure of Estonia, Latvia and Lithuania are compared with that of the EU.…”

Section: Methodsmentioning

confidence: 99%

Competitiveness and Economic Development Scenarios of Latvia

Auziņa-Emsiņa

Ozoliņa

Počs

2018

Business, Management and Education

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The paper deals with the analysis of exports and competitiveness in Latvia in comparison with Estonia and Lithuania. The objective of the study is to elaborate the possible sectoral development scenarios based on the competitiveness analysis results. The main focus is on exports of goods and revealed comparative advantage (RCA) of exported products as compared to the EU exports.Scenarios are elaborated to model economic development by industries using Latvian Model of Development (LMD), which is a macro-econometric model. Results argue that the economic development is higher if the competitiveness ensures both higher export growth and import substitution. RCA is an appropriate method to apply in competitiveness studies and the research findings can be used in economic policy and analysis.

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Section: Methodsmentioning

confidence: 99%

Competitiveness and Economic Development Scenarios of Latvia

Auziņa-Emsiņa

Ozoliņa

Počs

2018

Business, Management and Education

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“…Furthermore, the concept of revealed comparative advantage is widely applied to measure the competitiveness of trade and commodities. In this regard, Balassa's revealed comparative advantage and Vollrath's export competitiveness are of special impotence (French 2017, Cai and Leung 2008, Béla 1965).…”

Section: Theory Of Comparative Advantagementioning

confidence: 99%

The gravity model of trade

Shahriar

Kea

et al. 2019

RIC

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Purpose. The purpose of this study is to trace the theoretical developments of the gravity model of trade. The key question is: what are the dominant features of the development of the gravity trade model? Methodology. This research is conducted by employing a number of methods that include the historical, descriptive and analytical methods. The main contribution of this paper is to trace the historical and theoretical development phases of the gravity model. Findings. This study is a novel attempt in terms of the identification of the four distinctive phases of the development of the gravity model. This work would, therefore, expand the existing literature on the gravity model. We argue that the development of the gravity model is the outcome of many research efforts. A large body of literature has given the model a solid theoretical foundation. But there is no consensus about the proper econometric estimation methods of the model. The gravity model is significant both historically and analytically. It is a useful tool for the analysis of international trade. It has become a popular research device used by the researchers and policy makers around the world. The gravity is regarded as one of the most successful models in the literature of international economics. Originality. The original contributions of this paper lie in streamlining the consistent historical development of the gravity model over a longer period of time-frame, ranging from 1885 to 2018. Limitations and Implications. This work is theoretical aspects of the trade gravity model. Future researchers could overcome the limitations by combining the theoretical and empirical studies in a paper. This paper can help the future researchers in dealing with the broad body of literature of gravity model. Acknowledement. This study was supported by the National Natural Science Foundation of China (grants No.71673223 & 71473197), and a PhD scholarship from the China Scholarship Council (CSC). The first author would like to thank the CSC for the financial support. He also acknowledges the invaluable research advice and guidance received from Dr. Yoto V. Yotov, professor at the School of Economics of the Lebow College of Business at Drexel University, Philadelphia, USA. The authors are highly grateful to the anonymous reviewers, managing editor, and the editor-in chief for their kind help and critical comments on the earlier drafts of the paper. However, the authors are responsible for the contents and limitations of the study. They declared no conflict of interests.

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“…The position of beef competitiveness was measured by using Revealed Comparative Advantage (RCA) method or Balassa Index popularized by Balassa in 1965 (French, 2017). RCA compares the weight of a certain category of export in total export from a country with the weight of the same category at world level, against total world export.…”

Section: Revealed Comparative Advantage Analysismentioning

confidence: 99%

Competitiveness of Indonesian beef trading in Asean

Sutawi

Hendraningsih

Wahyudi

2019

J. Indonesian Trop. Anim. Agric.

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ABSTRAKPenelitian ini bertujuan menganalisis posisi daya saing dan spesialisasi perdagangan daging sapi Indonesia di ASEAN. Penelitian dilakukan di Indonesia dengan sembilan negara anggota Asean lain (Malaysia, Philippina, Singapore, Thailand, Brunei, Vietnam, Kamboja, Laos, and Myanmar) sebagai pembanding. Penelitian menggunakan data sekunder nilai ekspor dan impor daging sapi, dan ekspor komoditas Indonesia dan sembilan negara ASEAN lain tahun 2013 hingga 2017. Posisi daya saing daging sapi diukur menggunakan metode Revealed Comparative Advantage (RCA), sedangkan spesialisasi daging sapi dalam perdagangan internasional diukur menggunakan metode Indeks Spesialisasi Perdagangan (ISP). Hasil perhitungan RCA tahun 2013-2017 menunjukkan bahwa keunggulan komparatif perdagangan daging sapi Indonesia terendah di ASEAN (RCA=0,000). Hasil perhitungan ISP tahun 2013-2017 menunjukkan bahwa komoditas daging sapi Indonesia berada pada tahap pengenalan dalam perdagangan internasional (ISP=-1,000).Kata kunci: ISP (indeks spesialisasi perdagangan), keunggulan komparatif, perdagangan daging sapi, RCA ( revealed comparative advantage) ABSTRACTThis research was aimed to analyze Indonesian beef trading competitive position and specialization in ASEAN countries. This research was conducted in Indonesia with nine other ASEAN members (Brunei, Cambodia, Laos PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) as the comparison. The research used secondary data of beef export and import values, and export commodities from Indonesia and nine other ASEAN countries in 2013 to 2017. Beef competitive position was measured by using Revealed Comparative Advantage (RCA) method, while the development of beef commodity in international trading was measured by using Trading Specialization Index (TSI) method. RCA calculation result in 2013-2017 showed the lowest comparative advantage of Indonesian beef trading in ASEAN (RCA = 0.000). TSI calculation result in 2013-2017 showed that Indonesian beef trading commodity was in introduction stage in international trading (TSI=-1.000).

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Revealed comparative advantage: What is it good for?

Cited by 91 publications

References 47 publications

Competitiveness and Economic Development Scenarios of Latvia

Competitiveness and Economic Development Scenarios of Latvia

The gravity model of trade

Competitiveness of Indonesian beef trading in Asean

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