Comparative advantage in the countries of the Andean Community – CAN – in the international trade of goods with Mercosur

Abstract

The aim of the article is to identify comparative advantage in the trade of goods in the countries of the Andean Community (CAN; four countries) over the Mercosur group (five countries) in the years 2007–2017. For this purpose, the Balassa inde Xof revealed comparative advantages (RCA) was used along with the Standard International Trade Classification (SITC) of goods. The study is preceded by a presentation and discussion of CAN’s international trade of goods with Mercosur. On the basis of the study, it may be stated that the RCA can be found in sections three (mineral fuels, lubricants, and related products), eight (other industrial products), and nine (other unclassified goods) of SITC. Between 2007–2017, section three had a particularly high RCA value, which proves the great importance of mining goods for the national economies belonging to CAN.