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The Annals of Regional Science

, Volume 43, Issue 1, pp 267–282 | Cite as

The normalized revealed comparative advantage index

  • Run YuEmail author
  • Junning Cai
  • PingSun Leung
Original Paper

Abstract

In this paper, we propose the normalized revealed comparative advantage (NRCA) index as an alternative measure of comparative advantage. The NRCA index is demonstrated capable of revealing the extent of comparative advantage that a country has in a commodity more precisely and consistently than other alternative RCA indices in the literature. As a result, the NRCA index is comparable across commodity, country, and time. Therefore, the NRCA index provides a useful tool for quantitative regional research, especially for studies on regional comparative advantage.

JEL Classification

F14 R12 C43 

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Copyright information

© Springer-Verlag 2008

Authors and Affiliations

  1. 1.College of Tropical Agriculture and Human ResourcesUniversity of Hawaii at ManoaHonoluluUSA
  2. 2.Chinese Academy of Finance & DevelopmentCentral University of Finance and EconomicsBeijingChina

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