Description Usage Arguments Details Value Author(s) References See Also Examples

Calculates the vertical specialization share of total exports of each sector as described by Hummels et al. (2001), equation 3. Creates a value between zero and one to indicate relative specialization. For each region, a Leontief inverse is calculated. You need a multi-region input-output dataset for `vs`

to be relevant.

Caution: Inverting large matrices will take a long time. Each individual hypothetical extraction requires the inversion of a matrix. R does a computation roughly every 8e-10 second. The number of computations per matrix inversion is n^3 where n is the dimension of the square matrix. For n = 5000 it should take 100 seconds.

1 | ```
vs(io, ES, regions = "all", sectors = "all")
``` |

`io` |
An |

`ES` |
An |

`regions` |
Character or Integer. Specific regions to be used. Can either be a character that exactly matches the name of the region in |

`sectors` |
Character or Integer. Specific sectors to be used. Can either be a character that exactly matches the name of the sector in |

The vertical specialization share of total exports is calculated as follows:

*
\frac{vs_r}{X_r^{total}} = \frac{1}{X_r^{total}} A^M_r L_r X_r
*

where *X_r^{total}* is the total exports for region r, *A^M_r* is the matrix of technical import coefficients, *L_r* is the domestic Leontief inverse calculated from the domestic matrix of technical coefficients i.e. *A_{rr}* not the full *A* matrix, and *X_r* is the vector of total exports.

Creates a region list of vs share of total exports.

John J. P. Wade, Ignacio Sarmiento-Barbieri

Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. *The nature and growth of vertical specialization in world trade*. Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.

`import.coef`

, `export.total`

, `check.RS`

, `leontief.inv`

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