To test the general competitive efficiency of the United States and its rivals, we construct a model of revealed comparative advantage (RCA) based upon work by Balassa to investigate market dominance of the United States. The analysis is used frequently when looking for changes in a country’s trading status.

Revealed comparative advantage rca formula

The Revealed Comparative Advantage is defined as the ratio of two shares. The numerator is the share of a country’s total exports of the commodity of interest in its total exports, and the denominator is share of world exports of the same commodity in total world exports. The RCA takes a value between 0 and (infinity).
Jul 03, 2008 · The competitiveness of Malaysian manufactured exports can be improved by examining the pattern of revealed comparative advantage (RCA). Within the non-resource-based manufactured exports, Malaysia still has comparative advantage for electrical and electronic goods and machinery (its largest export item), even though it has been on a decline.
The RCA metrics. Country A is said to have a revealed comparative advantage in a given product i when its ratio of exports of product i to its total exports of all goods (products) exceeds the same ratio for the world as a whole: That is, Where. P is the set of all products (with i∈P), X Ai is the country A's exports of product i,
What is the abbreviation for Revealed Comparative Advantage? What does RCA stand for? RCA abbreviation stands for Revealed Comparative Advantage.
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the help of the revealed comparative advantage (RCA). We take, with the usual caveat, an increasing value of a country’s RCA in a product as an indication that it is gaining a comparative advantage in that product, and conversely when the RCA is decreasing. Between 1992 and 2003, China rapidly gained a comparative advantage in ICT

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machinery. After calculating indices of revealed comparative advantage (RCA) for 3-digit SITC categories, we test for convergence of export patterns between each pairing of partners (Japan-Korea, Korea-Taiwan, and Japan-Taiwan). We find that even though each partner has a statistically significant correlation of RCA indices, export patterns of
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the two economies is undertaken. The pattern of comparative advantage is also examined for inter-temporal variation over the period 2000-2003. The analysis of comparative advantage has been undertaken using the Balassa (1965) index of revealed comparative advantage for the two and six digit level of HS classification. Comparative advantage
Revealed Comparative Advantage (NRCA) developed by Yu et al. (2009). Earliest studies calculated Revealed Comparative Advantage (RCA) and comparative advantages through various indices, but beauty of NRCA is that it covers time and space comparison; therefore its results are more reliable and indicate changes in patterns over time.
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May 26, 2020 · I am trying to calculate RCA(Revealed Comparative Advantage) to use in my thesis. I am following the paper by Dalum (1999) and Laursen (2005), in order to explore more on RCA. In the paper of Dalum (1999) and Laursen (2005), they not only calculated RCA and RSCA(Revealed Symmetric Comparative Advantage) but also the equation below, in order to ...
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(SITC 752). Further, the study used the Constant Market Share (CMS) and Revealed Comparative Advantage (RCA) framework to analyze the extent of the export competition between Malaysia and other competitor economies. Overall, CMS result showed that, in the first sub-period (1990-1994), Malaysia E&E export was
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Balassa (1965) is one. The indices of revealed comparative advantage (RCA) basically use post-trade data for each of the relevant variables the model specifies. The concept of revealed comparative advantage is used to present the pattern of comparative advantage using the computed results over time.

Sep 16, 2014 · The Revealed Comparative Advantage (RCA) is an index used to calculate the relative advantage/disadvantage that a country has in exporting a certain good. According to Balassa’s definition, a country has RCA in a product if its export share of a certain good is equal or greater than the share of total world trade that the product represents.

the formula: CAGR = ((End value/start value) ^ (1/period-1))-1 The revealed comparative adv-antage (RCA) for Pakistan in tomato trade was also measured to look at the extent of relative advantage or disadvantage to capture the degree of trade specialization. Several resear-chers have determined comparative advantage like Balassa, (1989); Hsu Sep 06, 2020 · Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. The theory of comparative advantage introduces ... Using disaggregate product data classified by the Harmonized System code, this paper computes the revealed comparative advantage (RCA) for seven major economies that, when combined, contributed more than 80% of global manufacturing exports in 1996-97 and 2006-07. through revealed comparative advantage (RCA) Balassa index (1965) at Harmonized System HS 2-digits levels. This study aim is to provide a picture relative position of textile and clothing sector of Pakistan in the foreign markets and to compare the comparative advantage status with major giants in the region. RCA RCA Corporation, founded as the Radio Corporation of America, was an American electronics company in existence from 1919 to 1986. The RCA trademark is used by Sony Music Entertainment and Technicolor, which licenses the name to other companies such as Audiovox and TCL Corporation for products descended from that common ancestor.

RCA (REVEALED COMPARATIVE ADVANTAGE) ... RCA merupakan salah satu metode yang digunakan untuk mengukur keunggulan komparatif disuatu wilayah (kawasan,negara ...

(IIT) and revealed comparative advantage (RCA) indicators reflect changes in the level of the competitiveness of transition economies, as well as the status of countries` adaptation to the global market in terms of intra-industry division of labor (Misala 2007). This article analyzes changes of trade structure between the EU-8
Jun 01, 2016 · The Revealed Comparative Advantage (RCA) analysis, suggested by Bela Balassa in 1965, is an ex post analysis of comparative advantage and has been used in many studies. RCA index is used to calculate the relative advantage, disadvantage and trade potential of a certain product in a country. limitation, known as the Revealed Comparative Advantage mea-sure (RCA). Using RCA, the diversity and ubiquity of each field of knowledge is mapped across countries. Then, a RCA-based prox-imity function is explored to visualize citation and h-index ubiq-uity. Science maps relating 27 knowledge areas and 237 countries
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Balassa (1965) is one. The indices of revealed comparative advantage (RCA) basically use post-trade data for each of the relevant variables the model specifies. The concept of revealed comparative advantage is used to present the pattern of comparative advantage using the computed results over time.
Graph 8.22 - Revealed comparative advantages (Lafay index): Comparisons of the 1997 and 2007 levels OECD Communications Outlook 2009 The OECD Communications Outlook 2009 presents the most recent comparable data on the performance of the communication sector in OECD countries and on their policy frameworks.
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Canada is said to have revealed comparative advantage in industry i when the index is greater than 1. In other words, if the Canada’s share of i’s exports in total Canadian exports relative to a reference exporter’s shareisbiggerthan1,thenCanadaissaidtohave 1There are circumstances in which RCA does not measure comparative advantage. When tariffs, trans-

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Balassa (1965) is one. The indices of revealed comparative advantage (RCA) basically use post-trade data for each of the relevant variables the model specifies. The concept of revealed comparative advantage is used to present the pattern of comparative advantage using the computed results over time.
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  2. The theory of comparative advantage is derived from David Ricardo’s insight that trade benefits countries that specialise in the production of goods and services with the lowest opportunity costs. Empirically, comparative advantage is revealed through the Balassa index (Balassa 1965).iii The RCA measure is derived from the following formula: where X ij This study investigated the export status of stone fruits in Iran during 1997 to 2010. Export trends and revealed comparative advantage of indices, namely, Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA), and Relative Export Advantage (RXA) as well as Trade Mapping (TM) were investigated for cherries, plums, peaches, and apricots.
  3. Formula Revealed Symmetric Comparative Advantage (RSCA) Index (Laursen, 1998) is used to measure comparative advantage. The RSCA index was developed by the Revealed Comparative Advantage (RCA) or Balassa index (Balassa 1965). The RCA and RSCA indexes are formulated as follows: RCAij= (xij/ xin) / (xrj/ xm) (1) “Although, the revealed comparative advantage (RCA) for India is lower than China as far as capital goods exports are concerned, India can still capitalise on this opportunity to push its ...
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  2. We adopt a modified version of the RCA index by Yu et al. (2009), the normalized revealed comparative advantage (NRCA) index, to present the United States’ and other top exporters’ comparative advantages in the four agricultural commodities of interest.3
  3. Laursen, K.(2015). Revealed comparative advantage and the alternatives as measures of international specialization. Eurasia Bus Rev 5, 99-115. Leishman, D., Menkhaus, D. J., and Whipple, D. . (1999). Revealed Comparative Advantage and the Measurement of International Competitiveness for Agriculture Commodities: An Empirical Analysis of Wool ... commonly used method of measuring comparative advantage in commodities or sectors is the Revealed Comparative Advantage index (RCA) proposed by Balassa (1965). However, the RCA has a defect of asymmetric in measuring comparative advantage as found by Benedictis (2005). The RCA is expressed as:
  4. What is the abbreviation for Revealed Comparative Advantage? What does RCA stand for? RCA abbreviation stands for Revealed Comparative Advantage. The theory of comparative advantage is derived from David Ricardo’s insight that trade benefits countries that specialise in the production of goods and services with the lowest opportunity costs. Empirically, comparative advantage is revealed through the Balassa index (Balassa 1965).iii The RCA measure is derived from the following formula: where X ij
  1. Nov 29, 2018 · Balassa’s revealed comparative advantage (RCA) index is computed for the assessment of comparative advantages of exports by BRICS countries in the year 2015 in the global markets. A comparative analysis of export similarity is done for India and other BRICS countries in EU. from this benchmark RCA index to measure its comparative advantage variation during the period. According to equation (3), country i’s revealed comparative advantage in any product jis measured by the ratio between its share in export market jand its world market share. Thus, country i’s comparative advantage in market jrelative to market
  2. Jun 01, 2016 · The Revealed Comparative Advantage (RCA) analysis, suggested by Bela Balassa in 1965, is an ex post analysis of comparative advantage and has been used in many studies. RCA index is used to calculate the relative advantage, disadvantage and trade potential of a certain product in a country.
  3. Measuring Revealed Comparative Advantage by Domestic Content in Exports Robert Koopman and Zhi Wang United States International Trade Commission Shang-Jin Wei, Columbia University, CEPR and NBER (Preliminary draft, not for quotation) Abstract This paper first refines a methodology in KPWW (2011) that completely decomposes a country‘s Abstract: This paper presents a new database of revealed comparative advantage (RCA) measures based on the recent index of RCA proposed by Costinot et al. (2012). This new index conceptually fits the ex ante and country-sector specific nature of the Ricardian comparative advantage better than the traditional Balassa index. (IIT) and revealed comparative advantage (RCA) indicators reflect changes in the level of the competitiveness of transition economies, as well as the status of countries` adaptation to the global market in terms of intra-industry division of labor (Misala 2007). This article analyzes changes of trade structure between the EU-8
  4. What is the abbreviation for Revealed Comparative Advantage? What does RCA stand for? RCA abbreviation stands for Revealed Comparative Advantage.
  1. Question: Revealed Comparative Advantage (RCA) Is An Index Used In International Economics For Calculating The Relative Advantage Or Disadvantage Of A Certain Country In A Certain Class Of Goods Or Services As Evidenced By Trade Flows. It Is Based On The Ricardian Comparative Advantage Concept. Dec 04, 2019 · This paper also analyses the possible impact of ChAFTA on an excluded commodity (wheat) using the Revealed Comparative Advantage (RCA) index. The result shows higher RCA on Australian wheat to trade with China compared to the world and other countries which have free trade agreements with Australia.
  2. in practice we measure comparative advantage indirectly. Revealed comparative advantage indices (RCA) use the trade pattern to identify the sectors in which an economy has a comparative advantage, by comparing the country of interests’ trade profile with the world average. Definition: The RCA index is defined as the ratio of two shares. The ...
  3. machinery. After calculating indices of revealed comparative advantage (RCA) for 3-digit SITC categories, we test for convergence of export patterns between each pairing of partners (Japan-Korea, Korea-Taiwan, and Japan-Taiwan). We find that even though each partner has a statistically significant correlation of RCA indices, export patterns of
  4. Revealed Comparative Advantage for India and ASEAN – Commodity Groups RCA is calculated for eight ASEAN countries and India in food products for 17 years to identify specific comparative advantage in trade. RCA for food is high for India, Indonesia, Malaysia, Thailand and Vietnam and low for Brunei, Cambodia, Philippines and Singapore. The ...
  1. the RCA values over the different sports for the US the RCA index for athletics (Rij = 1.55) is higher than for any other sport. This reflects that the US has a (revealed) comparative advantage in athletics. The fact that in spite of this the country only ranks 20th merely illustrates that 19 countries have an even stronger RCA.
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  3. To test the general competitive efficiency of the United States and its rivals, we construct a model of revealed comparative advantage (RCA) based upon work by Balassa to investigate market dominance of the United States. The analysis is used frequently when looking for changes in a country’s trading status. limitation, known as the Revealed Comparative Advantage mea-sure (RCA). Using RCA, the diversity and ubiquity of each field of knowledge is mapped across countries. Then, a RCA-based prox-imity function is explored to visualize citation and h-index ubiq-uity. Science maps relating 27 knowledge areas and 237 countries Abstract. The paper is an examination of Balassa’s ‘revealed comparative advantage’ (RCA). The results of researches show that when using the RCA, it should always be attuned in such a way, that it becomes symmetric.This paper consists of three major parts i.e. theory, analytical tool and case studies of comparative advantage.
  4. A country has a comparative advantage in a good or service when the opportunity cost of producing that good or service is lower in that country as compared to the other countries in the world.
  1. the help of the revealed comparative advantage (RCA). We take, with the usual caveat, an increasing value of a country’s RCA in a product as an indication that it is gaining a comparative advantage in that product, and conversely when the RCA is decreasing. Between 1992 and 2003, China rapidly gained a comparative advantage in ICT
  2. The model provides formula offering a simple and intuitive decomposition splitting Balassa (1965)'s Revealed Comparative Advantage (RCA) into contributions of a number of different micro mechanisms. Based upon the decomposition, we study the relative importance of each margin embedded in ECI to explain the differences in income and inequality ... Jun 30, 2018 · Balassa revealed comparative advantage (RCA) index for Pakistan has the following procedure: BRCAip = (Eip / Ep) / (Ep / E) (1) Here BRCAip is Balassa Revealed Comparative Advantage index of product i in Pakistan. Eiprepresents exports of commodity i in Pakistan; Ep represents the total exports of Pakistan andE represents the total world exports. (IIT) and revealed comparative advantage (RCA) indicators reflect changes in the level of the competitiveness of transition economies, as well as the status of countries` adaptation to the global market in terms of intra-industry division of labor (Misala 2007). This article analyzes changes of trade structure between the EU-8 The present paper tries to identify high potential export commodities on the basis of Revealed Comparative Advantage (RCA) analysis from 2006 to 2010. Paper uses the RCA of India in exports and compares it with RCA of USA in exports taking HS Code as the basic unit of classification.
  3. Revealed Comparative Advantage (NRCA) developed by Yu et al. (2009). Earliest studies calculated Revealed Comparative Advantage (RCA) and comparative advantages through various indices, but beauty of NRCA is that it covers time and space comparison; therefore its results are more reliable and indicate changes in patterns over time. What is the abbreviation for Revealed Comparative Advantage? What does RCA stand for? RCA abbreviation stands for Revealed Comparative Advantage. Lastly, India had no tourism competitive advantage with Chinese tourists throughout the whole year of study. It was shown that the RCA index was less than 1 the whole year of study. In conclusion, Thai tourism had a competitive advantage with the Chinese tourists in 2000 to 2015. The prime objective of the paper is to examine the export competitiveness of paddy production with reference to India and other competing countries. Export competitiveness indices that are used in the context of the study are “Revealed Comparative Advantage Index RCA” and “Comparative Export Performance index CEP”. RCA is listed in the World's largest and most authoritative dictionary database of abbreviations and acronyms RCA - What does RCA stand for? The Free Dictionary
  4. The networks are built according to the revealed comparative advantage (RCA) procedure described in the datasets section. The Method of Reflections proposed the Economic Complexity Index (ECI) to account for the production characteristics of countries, and the authors claimed it to be a better predictor than existing governance, institution ... RCA vs. RTA and Sectoral Import vs. RTA: First Empirical Evidence for Turkey: 10.4018/978-1-4666-1978-4.ch011: In mainstream literature, it is argued that technological specialization patterns of countries should be in accordance with their trade specialization
  1. Feb 13, 2019 · If a particular good accounts for a larger share of country A’s exports than it does to global exports, country A is said to have a revealed comparative advantage in the export of that good. An RCA value greater than one implies a comparative advantage for that good when compared to the world as a whole. Any value less than one implies a comparative disadvantage, and equal to one implies a comparative advantage similar to that of the world average. The main objective of this paper is to explore the relationship between merchandise exports and revealed comparative advantage (RCA) indicators of Croatian exports on the European Union (EU) market. For this purpose the main hypothesis is defined as follows: a Croatian merchandise export is positively correlated with RCA indicators on the EU ...
  2. Graph 8.22 - Revealed comparative advantages (Lafay index): Comparisons of the 1997 and 2007 levels OECD Communications Outlook 2009 The OECD Communications Outlook 2009 presents the most recent comparable data on the performance of the communication sector in OECD countries and on their policy frameworks. The main objective of this paper is to explore the relationship between merchandise exports and revealed comparative advantage (RCA) indicators of Croatian exports on the European Union (EU) market. For this purpose the main hypothesis is defined as follows: a Croatian merchandise export is positively correlated with RCA indicators on the EU ...
  3. This study investigates the Revealed Comparative Advantage (RCA) analysis for the ready-made garments (RMG) exports of Bangladesh and major competing countries i.e. India, Sri Lanka, Vietnam, Pakistan, China, Cambodia and Turkey. The purpose is to Balassa’s revealed comparative advantage index (BI). For further RCA indicators, see Balance et al. (1987), Memedovic (1994) or Vollrath (1991). Revealed comparative advantage: Balassa index (BI) The most common formula for RCA identification, described by Balassa (1965), concentrates on a country’s relative export performance.
  4. Comparative advantage measured by the RCA index is called “revealed” comparative advantage because market shares relect . Method . competitiveness but do not explain the sources of competitiveness. The RCA approach was irst introduced in Bela Balassa’s 1965 . Comparative advantage relects relative competitiveness.
  1. This paper tries to answer this question by applying the analysis based on the revealed comparative advantage (RCA). We compared the RCA index for major exporters of frozen shrimp, and found that the trend of RCA of Thailand has declined since 1990, while that of Indonesia has been stable and that of Vietnam has been outstanding for the same ...
  2. Oct 31, 2019 · The Power of One. A country’s RCA in a certain class of goods is calculated by dividing the proportion of the country’s exports in that class by the proportion of world exports in that class. If the resulting RCA is greater than one, then a comparative advantage has been discovered. from this benchmark RCA index to measure its comparative advantage variation during the period. According to equation (3), country i’s revealed comparative advantage in any product jis measured by the ratio between its share in export market jand its world market share. Thus, country i’s comparative advantage in market jrelative to market
  3. This study investigated the export status of stone fruits in Iran during 1997 to 2010. Export trends and revealed comparative advantage of indices, namely, Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA), and Relative Export Advantage (RXA) as well as Trade Mapping (TM) were investigated for cherries, plums, peaches, and apricots. First, we conducted the revealed comparative advantage (RCA) analysis, which is based on Ricardian trade theory positing that patterns of trade among countries are governed by their relative differences in productivity. Although they are difficult to observe, an RCA metric can be readily calculated using trade data to "reveal" these productivity (IIT) and revealed comparative advantage (RCA) indicators reflect changes in the level of the competitiveness of transition economies, as well as the status of countries` adaptation to the global market in terms of intra-industry division of labor (Misala 2007). This article analyzes changes of trade structure between the EU-8
  1. Aug 16, 2018 · 3.3.1 The concept of “Location Quotient” or “Revealed Comparative Advantage”. . . . .21 ... 8 Comparison of two different ways of calculating RCA-type metrics ... As mentioned above, RCA is used as an acronym in text messages to represent Revealed Comparative Advantage. This page is all about the acronym of RCA and its meanings as Revealed Comparative Advantage. Please note that Revealed Comparative Advantage is not the only meaning of RCA. Abstract. The paper is an examination of Balassa’s ‘revealed comparative advantage’ (RCA). The results of researches show that when using the RCA, it should always be attuned in such a way, that it becomes symmetric.This paper consists of three major parts i.e. theory, analytical tool and case studies of comparative advantage. May 01, 2017 · Since Balassa (1965), revealed comparative advantage (RCA) indexes have been employed in countless applications as a measure of the relative ability of a country to produce a good vis-à-vis its trading partners. The concept is simple but powerful: if, according to Ricardian trade theory, differences in relative productivity determine the ...
  2. the two economies is undertaken. The pattern of comparative advantage is also examined for inter-temporal variation over the period 2000-2003. The analysis of comparative advantage has been undertaken using the Balassa (1965) index of revealed comparative advantage for the two and six digit level of HS classification. Comparative advantage The concept of revealed comparative advantage (RCA) stands as a major pillar in empirical trade literature. Yet there is no absolute preference among the suggested RCA measures. Given that these are volume-based indices, results of any relevant empirical analysis would be heavily influenced by the choice of the RCA measure. Balassa’s revealed comparative advantage index (BI). For further RCA indicators, see Balance et al. (1987), Memedovic (1994) or Vollrath (1991). Revealed comparative advantage: Balassa index (BI) The most common formula for RCA identification, described by Balassa (1965), concentrates on a country’s relative export performance. 2 Structural revealed comparative advantage for value-added trade. 2.1 The pattern of specialization; 2.2 The pattern of RCA for gross exports and for value-added trade. 2.2.1 Why the pattern of RCA on the basis of value-added trade may differ from gross exports; 2.2.2 Value-added trade methodology; 2.3 Retrieving the pattern of RCA; 2.4 Data
  3. Formula Revealed Symmetric Comparative Advantage (RSCA) Index (Laursen, 1998) is used to measure comparative advantage. The RSCA index was developed by the Revealed Comparative Advantage (RCA) or Balassa index (Balassa 1965). The RCA and RSCA indexes are formulated as follows: RCAij= (xij/ xin) / (xrj/ xm) (1) The Revealed Comparative Advantage Index (RCA) is calculated to determine the comparative advantage and competitiveness of the sector for pre-determined agricultural products. Different indices have been reported to measurethe strength of the competition. Among them, the Balassa Comparative Advantage Index (RCA) is the most commonly used index.
  4. Another use of RCA might be to identify sectors that gain or lose from trade, perhaps in order to target assistance to those affected. Presumably sectors with an RCA of less than 100 might be viewed as more vulnerable to displacement by imports in response to trade liberalization than those for which RCA suggests a comparative advantage. The ratio is defined as Where RCA ih revealed comparative advantage ratio for from ECONOMICS e at IIT Bombay

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My estimates are a modified version of revealed comparative advantage (RCA) indicators (Balassa 1965), whereby a country’s (e.g. Britain’s) share of world exports of industry x is normalised for the country’s share of total world exports.

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Canada is said to have revealed comparative advantage in industry i when the index is greater than 1. In other words, if the Canada’s share of i’s exports in total Canadian exports relative to a reference exporter’s shareisbiggerthan1,thenCanadaissaidtohave 1There are circumstances in which RCA does not measure comparative advantage. When tariffs, trans-
This paper tries to answer this question by applying the analysis based on the revealed comparative advantage (RCA). We compared the RCA index for major exporters of frozen shrimp, and found that the trend of RCA of Thailand has declined since 1990, while that of Indonesia has been stable and that of Vietnam has been outstanding for the same ...
Figure 3: The evolution of China's imports and exports. (a) Exports minus imports as a share of gross domestic product (GDP) for China. (b) Revealed comparative advantage (RCA) for China. Source: Worl...
Merchandise trade statistics All Products export Revealed comparative advantage data from By Country (BY-COUNTRY) to World (All Countries) for years 1988 to 2018
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machinery. After calculating indices of revealed comparative advantage (RCA) for 3-digit SITC categories, we test for convergence of export patterns between each pairing of partners (Japan-Korea, Korea-Taiwan, and Japan-Taiwan). We find that even though each partner has a statistically significant correlation of RCA indices, export patterns of
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Jun 30, 2018 · Balassa revealed comparative advantage (RCA) index for Pakistan has the following procedure: BRCAip = (Eip / Ep) / (Ep / E) (1) Here BRCAip is Balassa Revealed Comparative Advantage index of product i in Pakistan. Eiprepresents exports of commodity i in Pakistan; Ep represents the total exports of Pakistan andE represents the total world exports.
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RCA analysis. Revealed Comparative Advantage (RCA) was first introduced by Bela Balassa (1965) [4]. It is an economist’s tool that uses the trade pattern to identify the business sectors in which an economy has a comparative advantage, when comparing the country of interests’ trade profile with the world average.
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Graph 8.22 - Revealed comparative advantages (Lafay index): Comparisons of the 1997 and 2007 levels OECD Communications Outlook 2009 The OECD Communications Outlook 2009 presents the most recent comparable data on the performance of the communication sector in OECD countries and on their policy frameworks.

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The analysis of comparative advantage is important from the policy perspective. Trade policies of a country should be tuned to promote export items where the country has comparative advantage. The Revealed Comparative Advantage (RCA) analysis, suggested by Bela Balassa in 1965, is an ex post analysis of comparative advantage and has been used in many studies. RCA index is used to calculate the ...

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