Market oriented approach of revealed comparative advantage in international trade

Trade, Development, and Poverty-Induced Comparative Advantage

This paper deals with the relation between trade and development when poverty affects individual decision making. We develop a twosector model that links production and schooling decisions under poverty with standard neo-classical trade analyses. The decision to either work or acquire skills depends on households having reached subsistence levels of income, implying that the income level of a c...

Revealed Comparative Advantage (rca) and Trade Complementarity between India-asean Trade: a Study with Reference to Fisheries Sector

International Productivity Differences, Infrastructure, and Comparative Advantage

This paper provides an empirical analysis of the effect of infrastructure on industry-level productivity and international specialization, as suggested by Clarida and Findlay’s (1992) model. Attempting to control for simultaneity with a three-stage least squares estimation strategy, we find that public infrastructure helps to explain patterns of comparative advantage and international specializ...

Trade, Welfare, and International Labor Market Spillovers

This paper develops a two-country new trade theory framework with two types of labor (skilled and unskilled) and an imperfect labor market arising from country-specific real minimum wages. It examines welfare implications of trade liberalization and spillover effects of labor market shocks in a global economy. The model identifies two key forces that shape the results: i) external scale effects...

Welfare State, Market Imperfections, and International Trade

Within a two-sector-two-country model of trade with aggregate scale economies and unionisation, a move to a more generous welfare state in one country increases welfare in that country and can have positive spill-over effects on the other. Furthermore, synchronised expansions of social security are more welfare enhancing than unilateral ones. Our results counter the fears that a race to the bot...