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

Description Usage Arguments Author(s) References See Also Examples

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

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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 p.balland@uu.nl

References

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

See Also

location.quotient

Examples

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## 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 Nov. 13, 2020, 2:50 a.m.