Transcription of Measuring Comparative Advantage: A Ricardian …
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Measuring Comparative advantage : A Ricardian approach Johannes Moenius*. University of Redlands Preliminary, please do not cite comments highly appreciated 06/12/2006. ABSTRACT. In this paper, we derive and compare several production- and export-based measures of Comparative advantage within a Ricardian framework. We first sort commodities into industries in order to obtain industry-specific indicators of Comparative advantage . We then compare these measures against a simple theoretical benchmark. First, we show that theoretically correct production- and export-based indicators are equivalent when there are no trade costs such as transport fees, insurance and tariffs.
Measuring Comparative Advantage: a Ricardian Approach page 3 jm / 12/3/06 Much empirical research on trade has been devoted to testing theories of comparative
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