prody | R Documentation |
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, ...).
prody(mat, vec)
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 |
Pierre-Alexandre Balland p.balland@uu.nl
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
## 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)
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