RCA: Compute an index of revealed comparative advantage (RCA) from...

In PABalland/EconGeo: Computing Key Indicators of the Spatial Distribution of Economic Activities

Compute an index of revealed comparative advantage (RCA) from regions - industries matrices

Description

This function computes an index of revealed comparative advantage (RCA) from (incidence) regions - industries matrices. The numerator is the share of a given industry in a given region. The denominator is the share of a this industry in a larger economy (overall country for instance). This index is also refered to as a location quotient, or the Hoover-Balassa index.

Usage

RCA(mat, binary = FALSE)

Arguments

mat	An incidence matrix with regions in rows and industries in columns
binary	Logical; shall the returned output be a dichotomized version (0/1) of the RCA? Defaults to FALSE (the full values of the RCA will be returned), but can be set to TRUE (RCA above 1 will be set to 1 & RCA values below 1 will be set to 0)

Author(s)

Pierre-Alexandre Balland [e-mail]

References

Balassa, B. (1965) Trade Liberalization and Revealed Comparative Advantage, The Manchester School 33: 99-123.

See Also

location.quotient

Examples

## generate a region - industry matrix
set.seed(31)
mat <- matrix(sample(0:100,20,replace=T), ncol = 4)
rownames(mat) <- c ("R1", "R2", "R3", "R4", "R5")
colnames(mat) <- c ("I1", "I2", "I3", "I4")

## run the function
RCA (mat)
RCA (mat, binary = TRUE)

PABalland/EconGeo documentation built on Jan. 5, 2023, 8:40 a.m.