prody: Compute the prody index of industries from regions -... In PABalland/EconGeo: Computing Key Indicators of the Spatial Distribution of Economic Activities

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

 `1` ```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.

`location.quotient`
 ``` 1 2 3 4 5 6 7 8 9 10``` ```## 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) ```