Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322682 
Year of Publication: 
2005
Series/Report no.: 
Discussion Papers Series No. 05-24
Publisher: 
Utrecht University, Utrecht School of Economics, Tjalling C. Koopmans Research Institute, Utrecht
Abstract: 
The theoretically necessary and sufficient condition for the correspondence between 'revealed'comparative advantage and pre-trade relative prices derived by Hillman (1980) is analyzed empricially for virtually all countries of the world over an extended period of time. This yields 10 stylized facts, including that (i) violations of the Hillman condition are small as a share of the number of observations, but quite substantial as a share of the value of world exports, (ii) violations occur relatively frequent in the period 1970 - 1984 while they hardly ever occur in the period 1985 - 1997, and (iii) violations occur foremost in primary product and natural-resource intensive sectors, for sectors in countries in Africa, the Middle East, Latin America, and Eastern Europe. The condition appears also to be useful for identifying erroneous trade flow classifications.
Subjects: 
Balassa index
Hillman condition
comparative advantage
JEL: 
C81
D43
F11
F20
Document Type: 
Working Paper

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