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Papers of the Regional Science Association
Article . 2017 . Peer-reviewed
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SSRN Electronic Journal
Article . 2015 . Peer-reviewed
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EconStor
Research . 2015
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A Closer Look at Revealed Comparative Advantage: Gross-versus Value Added Trade Flows

Gross-versus value-added trade flows
Authors: Steven Brakman; Charles van Marrewijk;

A Closer Look at Revealed Comparative Advantage: Gross-versus Value Added Trade Flows

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.Resumen La mayor disponibilidad de datos sobre valor anadido a traves del comercio nos permite identificar mas claramente los fragmentos de la cadena de produccion que son competitivos a nivel internacional en un pais determinado. En lugar de centrarse en sectores o ejemplos en particular, se determinaron las distribuciones de la ventaja comparativa manifiesta (VCM), en terminos tanto de las exportaciones brutas como del valor anadido para 40 paises. La comparacion sistematica de estas distribuciones revelo diferencias significativas para la VCM en funcion de las exportaciones brutas con respecto a los datos sobre el valor anadido. Mediante el uso de datos sobre la Gran Recesion a modo de ejemplo, se argumenta que la VCM debida al valor anadido es mas informativa en relacion al funcionamiento de la economia real que la VCM bruta del sector.

Country
Netherlands
Related Organizations
Keywords

EXPORTS, ddc:330, F14, value added exports, B Journal, revealed comparative advantage, gross exports, revealed comparative advantage, gross exports, value added exports, Revealed comparative advantage, F60, F10, FRAGMENTATION, value-added exports, jel: jel:F10, jel: jel:F14

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    popularity
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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
28
Top 10%
Top 10%
Top 10%
hybrid