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Monotonicity of additive indices of revealed comparative advantage

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  • Ufuk Gunes Bebek

    ()
    (School of Economics, University of Kent)

Abstract

This note extends Hillman's analysis of the appropriateness of the Balassa Index to the recently proposed additive measures of revealed comparative advantage (RCA). While previous studies suggest that Hillman's monotonicity condition is not restrictive, monotonicity conditions for the additive indices are overly restrictive, as they will fail to hold unless the indices reveal a comparative advantage.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I2-P170.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 2 ()
Pages: 1894-1901

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Handle: RePEc:ebl:ecbull:eb-10-00772

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Keywords: Revealed comparative advantage; monotonicity;

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References

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  1. Jeroen Hinloopen & Charles van Marrewijk, 2005. "Empirical Relevance of the Hillman Condition for Revealed Comparative Advantage: 10 Stylized Facts," Working Papers 05-24, Utrecht School of Economics.
  2. Alan V. Deardorff, 2005. "How Robust is Comparative Advantage?," Working Papers 537, Research Seminar in International Economics, University of Michigan.
  3. Bent Dalum & Keld Laursen & Gert Villumsen, 1998. "Structural Change in OECD Export Specialisation Patterns: de-specialisation and 'stickiness'," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(3), pages 423-443.
  4. Proudman, J. & Redding, S., 1998. "Evolving Patterns of International Trade," Economics Papers 144, Economics Group, Nuffield College, University of Oxford.
  5. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June.
  6. Run Yu & Junning Cai & PingSun Leung, 2009. "The normalized revealed comparative advantage index," The Annals of Regional Science, Springer, vol. 43(1), pages 267-282, March.
  7. Luca DE BENEDICTIS & Massimo TAMBERI, 2002. "A note on the Balassa Index of Revealed Comparative Advantage," Working Papers 158, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  8. Deardorff, Alan V, 1980. "The General Validity of the Law of Comparative Advantage," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 941-57, October.
  9. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 1-35, March.
  10. Travis, William P, 1972. "Production, Trade, and Protection When There are Many Commodities and Two Factors," American Economic Review, American Economic Association, vol. 62(1), pages 87-106, March.
  11. Arye Hillman, 1980. "Observations on the relation between “revealed comparative advantage” and comparative advantage as indicated by pre-trade relative prices," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(2), pages 315-321, June.
  12. Alex Hoen & Jan Oosterhaven, 2006. "On the measurement of comparative advantage," The Annals of Regional Science, Springer, vol. 40(3), pages 677-691, August.
  13. Serafino Marchese & Francisco Simone, 1989. "Monotonicity of indices of “Revealed“ comparative advantage: Empirical evidence on Hillman’s condition," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 125(1), pages 158-167, March.
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Cited by:
  1. Ufuk Gunes Bebek, 2011. "Robustness of the Proposed Measures of Revealed Comparative Advantage," Studies in Economics 1121, Department of Economics, University of Kent.

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