Abstract
The objective of this work is to analyze the specialization and the standard of the ‘gaucha’ industry foreign trade flow. To identify the products of comparative advantage holders the index of revealed comparative advantage of Balassa and the symmetrical index of revealed comparative advantage were used. The ‘gaucha’ industry presented revealed comparative advantage until year 2000, decreasing from then. The approach of intra-industry trade was adopted to determine the pattern of industrial flow of Rio Grande do Sul foreign trade. It reached a standard intra-industry from 1996 to 2006, showing considerable degree of product differentiation and economies of scale. Key words: ‘gaucha’ industry, comparative advantage, intra-industry trade.
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