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Which revealed comparative advantage index to choose? Theoretical and empirical considerations

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  • Stellian, Rémi
  • Danna-Buitrago, Jenny Paola

Abstract

This article proposes guidelines for choosing an index of revealed comparative advantages (RCA) to analyse a given configuration of countries, products and periods. Following a systematic review of the main theoretical strengths and weaknesses inherent in RCA indices, a standardized method is designed to gauge the quality of their empirical measurement. This method is illustrated for Colombia and the Northern Triangle. The guidelines formalize a number of theoretical and empirical trade-offs that need to be weighed to provide a better basis for choosing an RCA index.

Suggested Citation

  • Stellian, Rémi & Danna-Buitrago, Jenny Paola, 2022. "Which revealed comparative advantage index to choose? Theoretical and empirical considerations," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:48807
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    References listed on IDEAS

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