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Revealed Comparative Advantage and Intra-Industry Trade (Paperback)
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Revealed Comparative Advantage and Intra-Industry Trade (Paperback)
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This book analyses developments in Revealed Comparative Advantage
(RCA) and Intra-Industry Trade (IIT) in Ukraine, Russia, Poland,
Lithuania, Belarus and Moldova with The European Union and The
Commonwealth of Independent States between 1996 and 2006. The
purpose is to determine the extent to which structural changes
occurred, which domestic industries became more competitive and the
degree of differentiation which was present. On one hand, RCA
identifies those industries that have become relatively more
competitive, and attempts to assess whether a given industry enjoys
a comparative advantage in production by measuring exports. On the
other hand, IIT supposes the opposite of comparative advantage
theory, and affirms that differences between countries are not the
only rationale for trade, because of the presence of increasing
returns in scale economies. Thus, it examines the simultaneous
import and export of identical, similar or differentiated products
in the same industry often between similar countries. The results
of both the Balassa Index (RCA) and Grubel-Lloyd Index (IIT)
provide critical information from which to assess the degree of
trade restructuring.
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