On the Empirical Distribution of the Balassa Index
نویسندگان
چکیده
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 ‘a Balassa index above one’ to identify a strong sector, selects about one third of all industries. On the other hand, the distribution appears to differ markedly across countries.
منابع مشابه
A comparison of parametric and non-parametric methods of standardized precipitation index (SPI) in drought monitoring (Case study: Gorganroud basin)
The Standardized Precipitation Index (SPI) is the most common index for drought monitoring. Although the calculation of this index is usually done by using the gamma distribution fitting of precipitation data, studies have shown that for accurate monitoring of drought, the optimal distribution of precipitation in each month should be determined. On the other hand, in non-stationary time series,...
متن کاملReal currency appreciation in accession countries: Balassa-Samuelson and investment demand
The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a simple model. It is shown that productivity shocks work not only through a Balassa-type supply chann...
متن کاملInvariant Empirical Bayes Confidence Interval for Mean Vector of Normal Distribution and its Generalization for Exponential Family
Based on a given Bayesian model of multivariate normal with known variance matrix we will find an empirical Bayes confidence interval for the mean vector components which have normal distribution. We will find this empirical Bayes confidence interval as a conditional form on ancillary statistic. In both cases (i.e. conditional and unconditional empirical Bayes confidence interval), the empiri...
متن کاملAssociations between the Empirical Dietary Inflammatory Index and Cognitive Function Status in Community-Dwelling Elderly People of Tehran, Iran
Background and Objectives: Inflammation plays important roles in development of several chronic diseases, including cognitive functions. Neuritis in the brain can lead to decreased cognitive function in elderly people. Diet is one of the factors affecting inflammation. The empirical dietary inflammatory index is a novel tool that assesses the overall inflammatory potential of diets by generatin...
متن کاملEvaluating the Liquefaction Potential of Soil in the South and Southeast of Tehran based on the Shear Wave Velocity through Empirical Relationships
The liquefaction resistance of soil can be evaluated using laboratory tests such as cyclic simple shear, cyclic triaxial, cyclic torsional shear as well as field methods like Standard Penetration Test (SPT), Cone Penetration Test (CPT) and Shear Wave Velocity (Vs). In this regard, this study attempts to compare the results of the SPT based on the simplified procedure proposed by Seed and Idriss...
متن کامل