On the evolution of institutional comparative advantages

This article investigates how comparative advantages have changed in the last 30 years. Using export data for 100 countries over the period 1976–2004, it provides evidence that comparative advantages are not static, but change over time. Focussing on three different sources of institutional comparative advantage, it shows that they display different trends over time. Additionally, it shows that these effects are generally stronger for OECD countries.

Research highlights▶ This paper tests the presence of several sources of comparative advantage over time. ▶ It includes standard sources of comparative advantage (K, L) and institutional ones. ▶ The magnitude of K and L effects is stable or slightly decreasing over time. ▶ Institutional determinants of comparative advantage show different trends over time.