Arbeitspapier
Comparative Advantage, the Rank-size Rule, and Zipf's Law
Using a comprehensive international trade data set we investigate empirical regularities (known as Zipf’s Law or the rank-size rule) for the distribution of the interaction between countries as measured by revealed comparative advantage. Using the recently developed estimator by Gabaix and Ibragimov (2006) we find strong evidence in favor of the rank-size rule along the time, country, and sector dimension for three different levels of data aggregation. The estimated power exponents that characterize the distribution of revealed comparative advantage are stable over time but differ between countries and sectors. These differences are related empirically to country and sector characteristics, including population size, GDP, and factor intensities.
- Language
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Englisch
- Bibliographic citation
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Series: Tinbergen Institute Discussion Paper ; No. 06-100/1
- Classification
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Wirtschaft
Estimation: General
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Size and Spatial Distributions of Regional Economic Activity
- Subject
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Revealed comparative advantage
Balassa index
rank-size rule
Zipf’s Law
power law
Pareto distribution
- Event
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Geistige Schöpfung
- (who)
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Hinloopen, Jeroen
van Marrewijk, Charles
- Event
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Veröffentlichung
- (who)
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Tinbergen Institute
- (where)
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Amsterdam and Rotterdam
- (when)
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2006
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Hinloopen, Jeroen
- van Marrewijk, Charles
- Tinbergen Institute
Time of origin
- 2006