文档介绍：Ann Reg Sci (2009) 43:267–282
DOI -008-0213-3
ORIGINAL PAPER
The normalized parative advantage index
Run Yu · Junning Cai · PingSun Leung
Received: 15 November 2007 / Accepted: 5 February 2008 / Published online: 11 March 2008
© Springer-Verlag 2008
Abstract In this paper, we propose the normalized parative advantage
(NRCA) index as an alternative measure parative advantage. The NRCA index
is demonstrated capable of revealing the extent parative advantage that a country
has in modity more precisely and consistently than other alternative RCA indices
in the literature. As a result, the NRCA index parable modity, country,
and time. Therefore, the NRCA index provides a useful tool for quantitative regional
research, especially for studies on parative advantage.
JEL Classification F14 · R12 · C43
1 Introduction
Comparative advantage is a key concept in explaining the source of trade. In empiri-
cal trade research, comparative advantage can be measured by “parative
advantage”(RCA) indices, which uncover the parative advantage from
observable trade patterns (Balassa 1965). The most popular RCA index is Balassa’s
R. Yu (B) · P. Leung
College of Tropical Agriculture and Human Resources,
University of Hawaii at Manoa, 3050 Maile Way, Gilmore 111,
Honolulu, HI 96822, USA
e-mail: ******@
P. Leung
e-mail: ******@
J. Cai
Chinese Academy of Finance & Development,
Central University of Finance and Economics,
39 Xue Yuan Nan Rd., Hai Dian District, Beijing 100081, China
e-mail: @
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268 R. Yu et al.
RCA index. While Balassa’s RCA index is useful in assessing whether or not a country
parative advantage in modity, its utility parative studies is limited
and problematic (Hillman 1980, Bowen 1983, 1985, 1986, Ballance et al. 1985, 1986,
Deardorff 1994, Hoen and Oosterhaven 2006). Most studies use Balassa’s RCA index
only to signify a country’s relative ranking parative advantage in -
modities, eve