HKS Affiliated Authors
Rafik Hariri Professor of the Practice of International Political Economy
Excerpt
Excerpt
Implied Comparative Advantage. Ricardo Hausmann, January 2014. "Ricardian theories of production often take the comparative advantage of locations in different industries to be uncorrelated. They are seen as the outcome of the real- ization of a random extreme value distribution. These theories do not take a stance regarding the counterfactual or implied comparative advantage if the country does not make the product. Here, we find that industries in countries and cities tend to have a relative size that is systematically correlated..." Link