Assessing Economic Complexity with Input-Output Based Measures

The network effect indicator, H(A) is:

H(A) = 1 - h (A)

with h ( A) = -Z(A)-,
N² -N

in which Z(A) is the number of zeros of matrix L = (I-A)^-1.

Finally, the index of complexity as interdependence, combining the dependency and the
network effects is:

I(A) = G(A) x H(A)

This measure can be based on the technical coefficients matrix, A (M11 - CAIA) or on
the Leontief inverse, substituting, in G(A), L for A (M12 - CAIL).

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