What the OECD-WTO TiVA Data Tell Us about Comparative Advantage and International Trade in General

In this article, the recently published OECD-WTO TiVA data are used to re-examine the question of comparative advantage. Using the framework developed in Beaudreau (2011), it delves into the structural determinants of vertical, as opposed to horizontal, comparative advantage (VCA). In particular, it is shown that resource-based VCAs are fewer in number but greater in magnitude than knowledge-based ones, and that VCAs in R&D-intensive sectors are greater in number but smaller in magnitude. Furthermore, it is shown that countries specialize, having a limited number of VCAs. International specialization and comparative advantage are shown to be based in large measure on resources and knowledge.