This paper proposes a simple decomposition of the widely used DRC measure of international competitiveness into three distinct elements: (1) changes in international prices, (2) changes in production techniques and (3) total factor productivity change. The decomposition provides a clear analytical link between two largely separate methodologies for assessing economic performance, cost-benefit indicators based on the world price rule and total factor...
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1986/05/31
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Article de revue
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REP395
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1
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1
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2010/07/01
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Productivity change and dynamic comparative advantage
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