The effects of globalisation have been at the forefront of public debate in recent years, fuelled on the one hand by the large benefits of integrated markets, and on the other hand, by the detrimental adjustment effects often experienced by many economies as a result.  Knowing how trade has been evolving over time and the role policy has played in this evolution are critical to understanding the globalisation debate and grasping the lessons for future policy development. The comparative advantage hypothesis has been suggested as one of the principal explanations of international trade and of the benefits associated with openness. It has also provided the intellectual underpinnings for most trade policy in the past 50 years. This book collects OECD work that builds on recent contributions to the theory and empirics of comparative advantage, putting particular emphasis on the role policy can play in shaping trade.

Foreword
Breaking through on trade: How a changing world dynamic affects policy by Przemyslaw Kowalski and Susan F. Stone
-Integration of industrialised and emerging economies has shaped globalisation
-The concept of comparative advantage has been pivotal to studying this change
-Is comparative advantage still relevant today? What do the patterns of trade tell us?
-What kind of policies support a dynamic comparative advantage?
-Conclusions
-References
PART I. IS COMPARATIVE ADVANTAGE STILL RELEVANT TODAY?
Chapter 1. Comparative advantage: The theory behind measurement by Alan V. Deardorff
-The Ricardian trade model
-A variable-cost trade model advantage
-Conclusions
-References
Chapter 2. Production, consumption and trade developments in the era of globalisation  by Przemyslaw Kowalski and Ricardo H. Cavazos Cepeda
-Globalisation, trade, FDI and growth developments
-Overview of production, employment and consumption developments in OECD countries
-Selected trade developments
-Conclusions
-References
-Annex 2.A. Figures
Chapter 3. Comparative advantage and export specialisation mobility by Przemyslaw Kowalski and Novella Bottini
-Comparative advantage hypothesis and economic policy
-Measurement of comparative advantage and meaning of RCA indices
-Overview of export specialisation patterns by broad sector
-Dynamics of specialisation at the product level
-Conclusions
-References
-Annex 3.A. Country trade shares and RCA indices
-Annex 3.B. Mobility indices
-Annex 3.C. Figures and tables
Chapter 4. Changing patterns of trade in processed agricultural products by Peter S. Liapis
-What agricultural products are considered processed?
-Data
-Trends in trade and production
-Revealed comparative advantage and growth
-Conclusions
-References
Chapter 5. Have changes in factor endowments been reflected in trade patterns? by Susan F. Stone, Ricardo H. Cavazos Cepeda and Anna Jankowska
-The Heckscher-Ohlin theory of international trade
-Trends in factor endowments
-Measuring factor content
-Ranking factor content
-Conclusions
-References
-Annex 5.A. Data details
PART II. WHAT KIND OF POLICIES SUPPORT A DYNAMIC COMPARATIVE ADVANTAGE?
Chapter 6. Comparative advantage and trade performance: Policy implications by Przemyslaw Kowalski
-Sources of comparative advantage
-Empirical methodology
-Results
-Conclusions
-References
-Annex 6.A Details of data
-Annex 6.B. Table and figures
Chapter 7. The role of intermediate inputs and equipment imports in dynamic gains from trade by Susan F. Stone and Ben Shepherd
-What do we know about dynamic gains?
-Measuring the dynamic effects: Methodology and data
-Results
-References
Chapter 8. Determinants of diffusion and downstreaming of technology-intensive products in international trade by Lauren Deason and Michael J. Ferrantino
-Background
-Empirical strategy and data description
-Stylized facts and anomalies
-Conclusions
-References
-Annex 8.A. Tables
Chapter 9. Intellectual property reform and productivity enhancement by Ricardo H. Cavazos Cepeda and Douglas C. Lippoldt
-Motivation
-Literature review
-Summary
-Analytical approach and data
-Results
-Conclusions
-References
-Annex 9.A. Figures and tables
Chapter 10. The impact of export restrictions on raw materials on trade and global supply by Frank van Tongeren
-The what, why and who in export restrictions
-Economic effects of export restrictions
-The inefficiency and ineffectiveness of export restrictions
-Conclusions
-References
Chapter 11. Comparative advantage and structural change: Toward a complementary policy regime by Peter A. Petri and Michael G. Plummer Comparative advantage and structural change
-Complementary trade and structural policies
-Trade liberalization strategies
-Structural change strategies
-Conclusions
-References