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What is Revealed Comparative Advantage

Handbook of Research on Climate Change Impact on Health and Environmental Sustainability
The Revealed Comparative Advantage is defined as the ratio of two shares. The numerator is the share of a country’s total exports of the commodity of interest in its total exports, and the denominator is share of world exports of the same commodity in total world exports. The RCA takes a value between 0 and (infinity). A Country is said to have a revealed comparative advantage if the value is more than one.
Published in Chapter:
Climate Change, Trade Competitiveness, and Opportunity for Climate Friendly Goods in SAARC and Asia Pacific Regions
Soumyananda Dinda (Sidho Kanho Birsha University, India)
DOI: 10.4018/978-1-4666-8814-8.ch026
This paper examines trade performance of climate friendly goods using some trade indices for South Asia and Asia Pacific countries during 2002 - 2008. Climate friendly goods (CFG) are those goods which are less harmful to environment. Paper identifies performance of Asia Pacific region in CFG trade with other nations. Most of the countries in Asia are importers of climate friendly goods and technologies. The Comparative advantage analyses indicate that Hong Kong, China, and Japan have comparative advantage in the production of CFG goods. Pakistan, Sri-Lanka, and India prefer to trade in CFG regionally and have shown interest in production and trade of clean coal technologies (CCT). East and South East Asia regions have comparative advantage in Solar Photovoltaic Systems (SPVS) and Energy Efficient Lighting (EEL). Japan, China, Malaysia and Macao show good in 2008 for SPVS.
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India's Export Competitiveness With BIMSTEC Countries
An index used in international economics for calculating the relative advantage or disadvantage of a certain country in a certain class of goods or services as evidenced by trade flows.
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Industrial Competitiveness in MENA Countries: Current Strategic Directions of Industrial Policy
It is an index based on the Ricardian comparative advantage concept for calculating the relative competitiveness of a certain country in a certain class of goods or services using their trade flows as evidence.
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Minerals and Fisheries in the Arctic: A Geo-Economic Comparison of India and China
An index to indicate the advantage or disadvantage of a particular country in particular commodities or groups of commodities constructed with the help of trade flows.
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