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- W4320494945 abstract "The measures of revealed comparative advantage (RCA) with multiplicative specification and dependency on world trade of export items are incomparable across time and places. Intra-country comparisons by Balassa RCA and its variants are problematic, calling for a method of aggregating RCA of all sectors of a country reflecting the overall export potential of the country. Overall RCA of a country ([Formula: see text]) is necessary to know the country’s RCA of all the export items as a function of trade flows relative to a point of reference, that is, a base period. The article proposes geometric aggregation of the ratio of RCA at the current period over the base period for each sector to get [Formula: see text] by a continuous, monotonically increasing function of time, satisfying time-reversal test, formation of chain indices and generates time-series data. Progress path of [Formula: see text] and similar path of jth sector may help policymakers to decide on appropriate action for the economy and individual sectors. Distribution of [Formula: see text] will approach lognormal. Knowledge of distributions of [Formula: see text] for different countries helps to have a better inter-country comparison. The similarity of two RCA curves may be evaluated by similarity measures. An empirical illustration of the proposed method is given. JEL Codes: C43, F14" @default.
- W4320494945 created "2023-02-14" @default.
- W4320494945 creator A5035919102 @default.
- W4320494945 date "2023-02-12" @default.
- W4320494945 modified "2023-09-30" @default.
- W4320494945 title "Constructing Aggregated Revealed Comparative Advantage Index of a Country" @default.
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- W4320494945 doi "https://doi.org/10.1177/26316846221147583" @default.
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