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Monotonicity of additive indices of revealed comparative advantage

By Ufuk Gunes Bebek


This note extends Hillman's analysis of the appropriateness of the Balassa Index to the recently proposed additive measures of revealed comparative advantage (RCA). While previous studies suggest that Hillman's monotonicity condition is not restrictive, monotonicity conditions for the additive indices are overly restrictive, as they will fail to hold unless the indices reveal a comparative advantage.Revealed comparative advantage, monotonicity

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