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In both country groups, comparative advantage has become weaker It is well known that even in this neoclassical model, a country’s welfare may fall due to a worldwide reduction in trade costs if that improves market access of countries, such as. Productivity grew systematically faster in sectors that were initially at greater comparative disadvantage.

Savings rates are set to match the evolution of capital stocks in the data Productivity grew systematically faster in sectors that were initially at the greater comparative disadvantage The variation in snt is meant to capture the in uence of demographics, economic growth rates, market.

By andrei levchenko and jing zhang

We estimate productivities at the sector level for 72 countries and 5 decades, and examine how they evolve over time In this paper, we examine of the evolution of comparative advantage over time and its welfare consequences. Productivity grew systematically faster in sectors that were initially at greater comparative disadvantage We find that in both country groups, comparative advantage has become weaker

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