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The normalized revealed comparative advantage index

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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.

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Authors and Affiliations

  1. College of Tropical Agriculture and Human Resources, University of Hawaii at Manoa, 3050 Maile Way, Gilmore 111, Honolulu, HI, 96822, USA

    Run Yu & PingSun Leung

  2. Chinese Academy of Finance & Development, Central University of Finance and Economics, 39 Xue Yuan Nan Rd., Hai Dian District, Beijing, 100081, China

    Junning Cai

Authors
  1. Run Yu
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  2. Junning Cai
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  3. PingSun Leung
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Correspondence to Run Yu.

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Yu, R., Cai, J. & Leung, P. The normalized revealed comparative advantage index. Ann Reg Sci 43, 267–282 (2009). https://doi.org/10.1007/s00168-008-0213-3

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  • DOI: https://doi.org/10.1007/s00168-008-0213-3

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