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Brasili, Andrea; Epifani, Paolo; Helg, Rodolfo

doi:10.1023/a:1004065229330

Cited by 43 publications

(7 citation statements)

References 29 publications

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“…The 𝑅𝐸𝑀𝑆 𝑁 index is asymmetric with values between 0 (no exports of 𝑠 in 𝑑) to infinite. To make it symmetric and to simplify its interpretation, we follow Brasili et al (2000) and apply the following monotonic transformation:…”

Section: Calculation Of the Relative Export Market Size (Rems) Indexmentioning

confidence: 99%

Export Market Size Matters: The Effect of the Market Size of Export Destinations on Manufacturing Growth

Goda,

Sánchez González

2024

International Economic Journal

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Literature contends that the manufacturing sector is crucial for economic development, and it is conventional wisdom that exports drive manufacturing growth. However, it has not yet been established empirically whether the market size of export destinations is an important factor to explain diverging regional and sectorial manufacturing growth patterns. This article argues that accessing large external markets reduces transaction costs, increases expectations of economies of scale and fosters capital formation. To test this hypothesis, we construct a novel Relative Export Market Size (REMS) index that measures whether the share of sectoral exports that are destined to large economies in one region is higher than in other regions. Using a PVAR model, we verify the impact of the REMS index on value added, employment and capital accumulation of 129 manufacturing sectors in 23 regions in Colombia during the period 1992-2017. The obtained results show that exporting to larger markets has a positive impact on employment, capital formation and value added per capita of manufacturing sectors at a regional level. This finding indicates that exporting to the largest market of the world helps to develop competitive manufacturing sectors.

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Section: Calculation Of the Relative Export Market Size (Rems) Indexmentioning

confidence: 99%

Export Market Size Matters: The Effect of the Market Size of Export Destinations on Manufacturing Growth

Goda,

Sánchez González

2024

International Economic Journal

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“…The decomposition of the theoretical range of the RCA index permits the identification of weak, medium and strong comparative advantage for the export industries of a country (Table 1). The persistence or mobility of a country's comparative advantage over time can be examined by applying a transition probability matrix and Markov chains to the classification of the RCA index (see Proudman and Redding 2000;Brasili, Epifani, and Helg 2000;Hinloopen and van Marrewijk 2001;Hosein 2008;Sinanan and Hosein 2012). A discrete time Markov chain is characterized by a finite set of states at discrete time intervals and probabilities (p ij ) for transition between these states.…”

Section: Revealed Comparative Advantage Index and Transition Probabil...mentioning

confidence: 99%

Trade, Economic and Welfare Impacts of the CARICOM-Canada Free Trade Agreement

Hosein,

Khadan

2016

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This paper estimates the trade, revenue, and welfare effects of the proposedCaribbean Community (CARICOM)-Canada free trade agreement (FTA) on CARICOM countries using a partial equilibrium model. The welfare analysis also takes into account the Economic Partnership Agreement, which was signed in 2008 by the CARIFORUM (CARICOM and the Dominican Republic) countries and the European Union. The revealed comparative advantage index, trade complementarity index, and transition probability matrices are used to examine the dynamics of comparative advantage for CARICOM countries' exports to Canada. The results obtained from the partial equilibrium model indicate adverse revenue and welfare effects for CARICOM member states. The results from various trade indices used do not provide evidence to suggest that an FTA between CARICOM countries and Canada can improve trade outcomes.

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“…There are several measures of the stability of the values of the RCA index for particular commodity groups from   to   . Following Proudman and Redding (2000), Brasili et al (2000), Hinloopen and van Marrewijk (2001), and Bojnec and Ferto (2008), we will employ Markov transition probability matrices to assess the mobility of the RCA (measured by the RCA index). There has thus far been no consensus on the classification of the RCA index into appropriate categories.…”

Section: The Intra-distribution Dynamicsmentioning

confidence: 99%

Dynamic Patterns in Vietnam’s Comparative Advantage

Doanh¹,

Heo²

2011

Journal of International Logistics and Trade

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This paper investigates the dynamic patterns of Vietnam’s comparative advantage in the context of ASEAN. Using the Galtonian regression method and the Markov transition probability matrices for data from 1997 to 2008, we find the following: Firstly, commodity groups with a weak comparative advantage improved their competitiveness, whereas those groups with a strong comparative advantage saw it decline, indicating a convergence of their comparative advantages. Secondly, in terms of intra-distribution dynamics, industries with no initial comparative advantage (Class a) and those with a strong initial comparative advantage (Class d) showed a high degree of persistence, suggesting a low degree of mobility in the trade patterns for Classes a and d. Thirdly, mineral resource-intensive products showed a high degree of export specialization, whereas other product categories showed a high degree of export diversification. Fourthly, all commodity groups showed a downward trend in the degree of specialization. Finally, Vietnam’s exports were dominated by unskilled labor-intensive products and agricultural resource-intensive products, reflecting the validity of Heckscher-Ohlin model. As a result of the country’s trade liberalization, the patterns of Vietnam’s comparative advantage have come to reflect its factor endowment. These results suggest that Vietnam could better diversify its export structures and shift to exports based on human capital and technology by further liberalizing its trade policies, fostering human capital formation, and facilitating the transfer of technology.

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Untitled

Cited by 43 publications

References 29 publications

Export Market Size Matters: The Effect of the Market Size of Export Destinations on Manufacturing Growth

Export Market Size Matters: The Effect of the Market Size of Export Destinations on Manufacturing Growth

Trade, Economic and Welfare Impacts of the CARICOM-Canada Free Trade Agreement

Dynamic Patterns in Vietnam’s Comparative Advantage

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