# Balassa index

- Canonical URL: https://www.gerhardmerk.de/balassa-index
- Post ID: 592445
- Modified: 2023-07-25T21:00:10+00:00
- Language: en

## Definition

A measure of a country's comparative cost advantage (geographic comparative cost advantage) in the world market. This is the ratio of the share of a particular product type in a country's exports, e.g. pharmaceuticals, to the exports of this product type in the world market: Pharmaceuticals - to the exports of this product type in the world as a whole. If the figure obtained in this way is greater than one over several years, as in the case of pharmaceuticals in Switzerland, then this indicates specialization in this commodity. - See foreign trade dependence, research ratio, globalization, unit value ratio, rigidities, structural, terms of trade. - Cf. ECB Monthly Bulletin, January 2008, pp. 85 f. (explanation; application to euro area; overviews). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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