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Changing Comparative Advantages

By Marcella Nicolini

Abstract

This paper inspects how comparative advantages have changed in the last 30 years. Using trade data on 197 countries over the period 1976- 2004, it provides evidence that comparative advantages are not static, but change over time. More interestingly, it shows the rise in relevance of institutional comparative advantage. Finally, it shows that this results does not hold for some countries (BRIC).DYNREG

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