Revealed comparative advantage and competitiveness in services A study with special emphasis on developing countries

摘要

Purpose - The purpose of this paper is to analyze the competitiveness of selected services: business,rnfinancial, transport and travel services in developing countries in relation to that of the rest of thernworld based on three indices of revealed comparative advantage. Design/methodology/approach - The study uses revealed comparative advantage (RCA) indicesrnto measure developing countries' comparative advantages in selected services for the periodrn1998-2003. Findings - Strong comparative advantages exist for many developing countries in transport, andrntravel services. There is substantial room for improvement in financial and business services. Tradernliberalization and lack of adequate preparation appears to have resulted in a weakening of theirrncomparative advantages over the years. However, their revealed comparative advantages remain, byrnand large, stable and do not show a fundamental shift in the structure of their comparativernadvantages. Originality/value - There are no studies examining developing countries' comparative advantagesrnin services. The findings and policy recommendations can be used by developing countries to improvernthe competitiveness of their service sectors.