prody: Compute the prody index of industries from regions -...

Description Usage Arguments Author(s) References See Also Examples

View source: R/prody.r

Description

This function computes the prody index of industries from (incidence) regions - industries matrices, as proposed by Hausmann, Hwang & Rodrik (2007). The index gives an associated income level for each industry. It represents a weighted average of per-capita GDPs (but GDP can be replaced by R&D, education...), where the weights correspond to the revealed comparative advantage of each region in a given industry (or sector, technology, ...).

Usage

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prody(mat, vec)

Arguments

mat

An incidence matrix with regions in rows and industries in columns

vec

A vector that gives GDP, R&D, education or any other relevant regional attribute that will be used to compute the weighted average for each industry

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

Hausmann, R., Hwang, J. & Rodrik, D. (2007) What you export matters, Journal of economic growth 12: 1-25.

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")

## a vector of GDP of regions
vec <- c (5, 10, 15, 25, 50)
## run the function
prody (mat, vec)

PABalland/EconGeo documentation built on Nov. 13, 2020, 2:50 a.m.