Empirical Relevance of the Hillman Condition for Revealed Comparative Advantage: 10 Stylized Facts
AbstractThe theoretically necessary and sufficient condition for the correspondence between `revealed'comparative advantage and pre-trade relative prices derived by Hillman (1980) is analyzed empricially for virtually all countries of the world over an extended period of time. This yields 10 stylized facts, including that (i) violations of the Hillman condition are small as a share of the number of observations, but quite substantial as a share of the value of world exports, (ii) violations occur relatively frequent in the period 1970 1984 while they hardly ever occur in the period 1985 1997, and (iii) violations occur foremost in primary product and natural-resource intensive sectors, for sectors in countries in Africa, the Middle East, Latin America, and Eastern Europe. The condition appears also to be useful for identifying erroneous trade flow classifications.
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Bibliographic InfoPaper provided by Utrecht School of Economics in its series Working Papers with number 05-24.
Length: 25 pages
Date of creation: Feb 2005
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- Jeroen Hinloopen & Charles van Marrewijk, 2008. "Empirical relevance of the Hillman condition for revealed comparative advantage: 10 stylized facts," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2313-2328.
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F20 - International Economics - - International Factor Movements and International Business - - - General
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