Abstract
The improved availability of value-added trade data allows us to identify more clearly what fragment in the production chain is internationally competitive in a particular country. Rather than focusing on particular sectors or examples, we determine the distributions of revealed comparative advantage (RCA) in terms of both gross exports and value-added for 40 countries. Systematically comparing these distributions reveals significant differences for RCA based on gross exports versus value-added data. Using data on the Great Recession as an example, we argue that value-added RCA is more informative regarding the workings of the real economy than gross sector RCA.
Original language | English |
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Pages (from-to) | 61-92 |
Number of pages | 32 |
Journal | Papers in Regional Science |
Volume | 96 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Mar 2017 |
Externally published | Yes |
Keywords
- gross exports
- Revealed comparative advantage
- value-added exports