Overall Specialization Empirics: Techniques and Applications
Open Economies Review, vol.15, n.4, Oct. 2004
Posted: 25 Jan 2014
Date Written: October 1, 2004
Abstract
It is customary in the empirical trade literature to analyze specialization patterns of countries using Revealed Comparative Advantage (RCA) measures. This paper explores the informational content of the most commonly used RCA index: the Balassa (1965) Index of RCA.
After describing the properties of the Balassa Index, we propose a research strategy based on descriptive statistics, kernel density estimation, concentration and Markov stationarity methods in order to analyze the dynamics of overall specialization.
Keywords: International Trade, Specialization, Revealed Comparative Advantage, Balassa Index, Nonparametrics
JEL Classification: C10, C14, F14
Suggested Citation: Suggested Citation