Revealed comparative advantage
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A macroeconomic concept for calculating a relative advantage or disadvantage of a certain country in a certain technological field.
Most commonly referring to an index introduced by Balassa (1965):
RCA = (Eij / Eit) / (Enj / Ent)
with
| E | Exports |
| i | Country index |
| j | Commodity index |
| n | Set of countries |
| t | Set of commodities |
Other definitions were later on developed and even preceded this definition. See e.g. Utkulu and Seymen (2004) for an overview.
[edit] References
Balassa, B. (1965), Trade Liberalisation and Revealed Comparative Advantage, The Manchester School,33, 99-123.
Utkulu and Seymen (2004), Revealed Comparative Advantage and Competitiveness: Evidence for Turkey vis-à-vis the EU/15
