comparative advantage research paper

This paper provides a comprehensive review of the existing RCA literature and summarizes major variations of Balassa RCA approach, such as one-way trade based, two-way trade based, with or...

A business owner would like to have guarantee of maximum returns considering various factors and therefore, the analogy of comparative advantage comes to play.

In this paper, we characterize how country export advantages evolve over time. From the gravity model of trade we extract a measure of country export capability, which we use to evaluate how export performance

This paper consists of three main parts i.e. theory, analytical tool and case studies of comparative advantage. Firstly, we review the theory and various empirical measures of comparative...

Abstract: This paper consists of three main parts i.e. theory, analytical tool and case studies of comparative advantage. Firstly, we review the theory and various empirical measures of comparative advantage.

refers to the fact that Ricardo's theory of comparative advantage is mathematically correct, not that it is empirically valid. The goal of this paper is to assess the empirical performance of Ricardo's ideas.

Using a large-scale industry-level dataset on production and bilateral trade, spanning 72 countries, 19 manufacturing sectors, and 5 decades, we estimate productivity in each country, sector, and decade, and document the changes in comparative advantage between the 1960s and today.

We build a simple Ricardian-inspired model and show that hidden information on inter-industry and inter-location relatedness can be captured by sim-ple correlations between the observed structure of industries across locations, or the structure of locations across industries.

Comparative advantage, whether driven by technology or factor endowment, is at the core of neoclassical trade theory. Using tools from the mathematics of complemen-tarity, this paper offers a simple yet unifying perspective on the fundamental forces that shape comparative advantage.

The concept of comparative advantage refers to the ability of a country to produce some good/service not only with higher productivity, as initially proposed by Ricardo, but also higher product differentiation than other countries in a given trade area (Lafay, Citation 1987).