Since the 1970s empirical studies on international trade have focused on measuring
the nations‟ comparative advantage and their positions in such a continuing scale of comparative advantage. Attempts have been made to quantify the RCA at different levels –enterprise, sectoral (industry) and national levels – by applying various approaches, such as cost; supply-demand (production-consumption); and trade (export-import) approaches (Donges and Riedel, 1977; Balassa, 1979; UNIDO, 1982; Marchese and De Simone, 1989). For example, Donges and Riedel (1977) constructed an index of RCA to analyze the impacts of trade policy on export diversification of 15 LDCs, and found that semi-industrial developing countries exhibited RCA in labor-intensive, raw material-intensive and light manufacturing industries. In a study on the patterns of comparative advantage in the world‟s trade of manufactures, UNIDO (1982) discussed various factors influencing a country‟s comparative advantages. They regarded comparative advantage as a “constant changing (dynamic) concept” and employed three measures of RCA for comparisons: a country‟s share in total exports of manufactures, the net export index (NE index), and export-performance ratio.
Since the 1970s empirical studies on international trade have focused on measuringthe nations‟ comparative advantage and their positions in such a continuing scale of comparative advantage. Attempts have been made to quantify the RCA at different levels –enterprise, sectoral (industry) and national levels – by applying various approaches, such as cost; supply-demand (production-consumption); and trade (export-import) approaches (Donges and Riedel, 1977; Balassa, 1979; UNIDO, 1982; Marchese and De Simone, 1989). For example, Donges and Riedel (1977) constructed an index of RCA to analyze the impacts of trade policy on export diversification of 15 LDCs, and found that semi-industrial developing countries exhibited RCA in labor-intensive, raw material-intensive and light manufacturing industries. In a study on the patterns of comparative advantage in the world‟s trade of manufactures, UNIDO (1982) discussed various factors influencing a country‟s comparative advantages. They regarded comparative advantage as a “constant changing (dynamic) concept” and employed three measures of RCA for comparisons: a country‟s share in total exports of manufactures, the net export index (NE index), and export-performance ratio.
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