*Version December 2013 ---------------------- basic syntax: rca var, j(exporter) m(export_varieties)index(#) by(year) Description: RCA calculates Balassa revealed comparative advantage index (BRCA), symmetric revealed comparative advantage index (SRCA), weighted revealed comparative advantage index (WRCA) & additive revealed comparative advantage index (ARCA). The module computes category level product share for country `j' and reference economy and requires that complete sector-level trade data are available. Balassa revealed comparative advantage (BRCA) index BRCA= (Xjm/Xj)/(Xkm/Xk) Symmetric revealed comparative advantage (SRCA) index SRCA= (BRCA-1)/(BRCA+1) Weighted revealed comparative advantage (WRCA) index WRCA= (BRCA)/[sum(BRCAjm)/N] Additive revealed comparative advantage (ARCA) index ARCA = (Xjm/Xj)-(Xkm/Xk) where, Xjm = Exports of country `j' of product `m' Xj = Total exports of country `j' Xkm = Total world exports of product `m' Xk = Total world exports BRCAjm = Sector level BRCA for country `j' N = Total number of sectors Option ------- by(varlist): allows groups defined by `varlist' e.g. (year) Examples: ---------- rca volume, j(exporter) m(export_varieties)index(BRCA) by(year) rca volume, j(exporter) m(export_varieties)index(SRCA) by(year) rca volume, j(exporter) m(export_varieties)index(WRCA) by(year) rca volume, j(exporter) m(export_varieties)index(ARCA) by(year) Author: Muhammad Rashid Ansari INSEAD Business School 1 Ayer Rajah Avenue, Singapore 138676 rashid.ansari@insead.edu References: Balassa, B. (1965), Trade liberalization and revealed comparative advantage, The Manchester School 33: 99-123 Dalum, B., Laursen, K., & Villumsen, G. (1998). Structural change in OECD export specialization patterns: De-specialization and 'stickiness.'. International Review of Applied Economics, 12 (3), 423-443. Laursen, K. (1998), Revealed Comparative Advantage and the Alternatives as Measures of International Specialization, Department of Industrial Economics and Strategy, Copenhagen Business School PROUDMAN, J. & REDDING, S. 2000. Evolving patterns of international trade. Review of International Economics, 8, 373-396. Alex R. Hoen, Jan Oosterhaven(2006). On the measurement of comparative advantage. The Annals of Regional Science, 40 (3), 677-691