Title: On the empirical distribution of the Balassa index
Authors: Hinloopen, Jeroen ×
Van Marrewijk, C #
Issue Date: 2001
Publisher: J c b mohr
Series Title: Weltwirtschaftliches archiv-review of world economics vol:137 issue:1 pages:1-35
Abstract: The concept of revealed comparative advantage as measured by the Balassa index is widely used in practice to determine a country's weak and strong sectors. Interpreting the Balassa index is difficult, however, in view of the limited knowledge to date on the distribution of this index. We analyze the empirical distribution of the Balassa index and its stability and properties over time, using Japan- European Union trade data. It appears that the distribution is relatively stable over time and that the widely used rule that "a Balassa index above one" identifies a strong sector, selects about one-third of all industries. On the other hand, the distribution appears to differ markedly across countries.
ISSN: 0043-2636
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Non-KU Leuven Association publications
× corresponding author
# (joint) last author

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