This document discusses methods for measuring a country's revealed comparative advantage and trade balance. It introduces the Revealed Comparative Advantage (RCA) method developed by Balassa, which uses a country's export of a commodity relative to its total exports and world exports of that commodity to determine if it has a comparative advantage. It also discusses the Trade Balance Index (TBI) method, which analyzes a country's export product specialization based on its trade balance. Formulas for calculating the RCA and TBI are provided.

1. Revealed Comparative Advantage
and Trade Balance Index

2. Comparative Advantage
• The concept of comparative
advantage is highly associated with
international trade. The theory of
international trade dates back to the
era of mercantilism.

3. Evolusi Teori Keunggulan Komparatif
The Theory of Endowment:
Heckscher and Ohlin
Theory of Comparative Advantage:
David Ricardo (1817)
Theory of Absolute Advantage:
Adam Smith (1776)

4. Evolusi Teori Keunggulan Komparatif
Theory of Revealed
Comparative Advantage:
Balassa (1965)
Metode yang digunakan untuk mengukur kinerja
ekspor suatu komoditi dari suatu Negara dengan
mengevaluasi ekspor komoditi tertentu dalam
ekspor total suatu Negara dibandingkan dengan
pangsa komoditi tersebut dalam perdagangan
dunia

5. International Trade in Today’s World
• In the contemporary world, the winds of
globalisation are influencing countries of
the world regardless to their level of
economic status.
• One of the factors that determine the
success of a country in international trade
is the competitiveness of its commodities
in the world.
• Hence, the importance and reliance on the
concept of comparative advantage has
increased.

6. Metode RCA
• 𝑹𝑪𝑨 =
𝑿 𝒊𝒋
𝒊 𝑿 𝒊𝒋
𝒋 𝑿 𝒊𝒋
𝒋 𝒊 𝑿 𝒊𝒋
• Where,
– Xij exports of sector “i” of a region “j”,
– 𝒊 𝑿𝒊𝒋 total exports of region “j”,
– 𝒋 𝑿𝒊𝒋 “world” exports of sector “i”
– 𝒋 𝒊 𝑿𝒊𝒋 total “world” exports.
• RCA > 1  have revealed comparative advantage
• RCA < 1  having revealed comparative disadvantage

7. Trade Balance Index (TBI)
Trade Balance Index:
Lafay (1992)
Metode yang digunakan untuk
menganalisis spesialisasi
produk suatu Negara yang
dilihat dari neraca perdagangan

8. Metode TBI
• Formula:
Where:
TBI : trade balance index of country i for product group j
Xij : export of product group j from country i
Mij : import of product group j from country i
Nilai TBI= -1 sampe 1

9. METODE PEMETAAN PRODUK EKSPOR-IMPOR
Produk
Unggulan
Subtitusi Impor
Produk
Unggulan
Ekspor
Bukan Produk
Unggulan Baik
Ekspor
maupun Impor
Produk
Potensial
Ekspor
TBI =
𝑛𝑒𝑡 𝑡𝑟𝑎𝑑𝑒
𝑡𝑜𝑡𝑎𝑙 𝑡𝑟𝑎𝑑𝑒
RCA=
%𝑒𝑘𝑠𝑝𝑜𝑟𝑐𝑜𝑢𝑛𝑡𝑟𝑦𝐴𝑢𝑛𝑡𝑢𝑘𝑘𝑜𝑚𝑜𝑑𝑖𝑡𝑖"𝑖"
%𝑒𝑘𝑠𝑝𝑜𝑟𝑤𝑜𝑟𝑙𝑑𝑢𝑛𝑡𝑢𝑘𝑘𝑜𝑚𝑜𝑑𝑖𝑡𝑖"𝑖"
00;-1
∞
1
1

10. RCA in synthetic fibre exports