location.quotient: Compute location quotients from regions - industries matrices

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

Compute location quotients from regions - industries matrices

Description

This function computes location quotients 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 the index of Revealed Comparative Advantage (RCA) following Ballasa (1965), or the Hoover-Balassa index.

Usage

location.quotient(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 location quotient? Defaults to FALSE (the full values of the location quotient will be returned), but can be set to TRUE (location quotient values above 1 will be set to 1 & location quotient 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

RCA

Examples

## generate a region - industry matrix
mat = matrix (
c (100, 0, 0, 0, 0,
0, 15, 5, 70, 10,
0, 20, 10, 20, 50,
0, 25, 30, 5, 40,
0, 40, 55, 5, 0), ncol = 5, byrow = T)
rownames(mat) <- c ("R1", "R2", "R3", "R4", "R5")
colnames(mat) <- c ("I1", "I2", "I3", "I4", "I5")

## run the function
location.quotient (mat)
location.quotient (mat, binary = TRUE)

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