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The VWRCA Index: Measuring a Country’s Comparative Advantage and Specialization in Services. The Case of Poland
Education Sciences Pub Date : 2021-04-02 , DOI: 10.3390/economies9020048
Roman Wosiek, Anna Visvizi

In the extant body of literature on the servitization of the economy, on the one hand, and determinants of growth and development, on the other, the classic question of revealed comparative advantage (RCA) plays a prominent role. Regardless of the popularity, relevance, and validity of the use of the RCA as a part of multivariate queries on the above topics, this paper argues that the RCA alone offers a rather static insight into a country’s economic performance. Most importantly, the classic take on the RCA does not allow us to query a country’s comparative advantage and degree of specialization in the services sector. By inserting itself in the broader discussion on ways of bypassing the limitations inherent in the classic RCA index, this paper proposes a novel take on the RCA index, i.e., the Visvizi–Wosiek RCA (VWRCA) index, and, subsequently, applies it to the study of the evolution of the services sector in Poland over the period 2010–2019. The added value of the VWRCA index is threefold. (i) By recognizing the increasing role of services in the global economy, it serves as a useful tool in queries aimed at examining the structure of a given economy, the degree of specialization in the production of certain services, and the real revealed comparative advantage a country has in the production of a certain group/category of services. (ii) By focusing solely on services, the VWRCA index allows us to examine the volume and velocity of trade in services independently from the volume of trade in goods. (iii) Due to the resulting methodological accuracy, it enables the inclusion of a temporal dimension in the analysis, which in turn gives cues as to specific developments and the actual performance of a given economy regarding the evolution of the services sector.

中文翻译:

VWRCA指数:衡量一个国家的比较优势和服务专业化程度。波兰案

在有关经济服务化的现有文献中,一方面是增长和发展的决定因素,另一方面,显性比较优势(RCA)的经典问题起着举足轻重的作用。无论将RCA用作上述主题的多元查询的一部分,使用RCA的受欢迎程度,相关性和有效性如何,本文都认为,仅RCA就能对一个国家的经济表现提供相当静态的洞察力。最重要的是,RCA的经典做法不允许我们查询一个国家的比较优势和服务业专业化程度。通过广泛讨论绕过经典RCA索引固有的局限性的方法,本文提出了一种新颖的RCA索引,即Visvizi-Wosiek RCA(VWRCA)索引,随后,将其用于研究2010-2019年期间波兰服务业的发展。VWRCA索引的增加值是三倍。(i)通过认识到服务在全球经济中的日益重要的作用,它可以作为有用的工具,旨在调查给定经济的结构,某些服务的生产专业化程度以及真正显示出的比较优势一个国家正在生产某种服务/类别。(ii)通过只关注服务,VWRCA指数使我们能够独立于货物贸易量来检查服务贸易的量和速度。(iii)由于所获得的方法学准确性,因此可以在分析中包括时间维度,
更新日期:2021-04-02
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