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Example: in 2010, soybeans represented 0.35% of world trade with exports of $ 42 billion. Of this total, Brazil exported nearly $ 11 billion, and since Brazil's total exports for that year were $ 140 billion, soybeans accounted for 7.9% of Brazil's exports. Because 7.9/0.35 = 22, Brazil exports 22
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for calculating the relative advantage or disadvantage of a certain country in a certain class of goods or services as evidenced by trade flows. It is based on the
Ricardian
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A comparative advantage is "revealed" if RCA>1. If RCA is less than unity, the country is said to have a comparative disadvantage in the commodity or industry.
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Obtain RCA for predefined
Product Groups like SITC Revision 2 Groups, Sector classification based on HS or UNCTAD's Stages of processing in
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times its "fair share" of soybean exports, and so we can say that Brazil has a high revealed comparative advantage in soybeans.
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288:{\displaystyle RCA_{cp}={\frac {E_{cp}/\sum _{p'\in P}E_{cp'}}{\sum _{c'\in C}E_{c'p}/\sum _{c'\in C,p'\in P}E_{c'p'}}}}
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That is, the RCA is equal to the proportion of the country's exports that are of the class under consideration,
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Revealed
Comparative Advantage and Competitiveness: Evidence for Turkey vis-à-vis the EU/15
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43:(1965). In particular, the revealed comparative advantage of country
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The concept of revealed comparative advantage is similar to that of
512:{\displaystyle {\frac {\sum _{c'}E_{c'p}}{\sum _{c',p'}E_{c'p'}}}}
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Calculate
Revealed Comparative Advantage using UNSD COMTRADE data
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Comparative
Advantage in Japan and the United States"
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405:{\displaystyle {\frac {E_{cp}}{\sum _{p'}E_{cp'}}}}
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607:(2): 8–22.
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