Assessing Economic Complexity with Input-Output Based Measures



1

(2)


AVOM = —i'(I - A)-1 i
n

with n representing the number of sectors and I the unit matrix.

A similar measure is used by Blin and Murphy (1974), with n2 in the denominator.

Useful only in highly disaggregated matrices is the Percentage of Nonzero Coefficients

measure (M3 - PNZC) of Peacock and Dosser (1957):

PNZC =100 i 'K i
n
2

(3)


where K is a Boolean matrix, such as:


k = [kij], kij


1, aij0

0, otherwise


A simple but useful measure is the Mean Intermediate Coefficients Total per Sector (M4
- MICT, Jensen and West 1980):

1

MIPS = —i ' Ai                                       (4)

n

Based on the work of Wang (1954) and Lantner (1974) is the idea that the smaller the
value of the determinant of the Leontief matrix, |
I-A|, the larger the elements of the Leontief
inverse and the interrelatedness of the IO system, and so we can use the (Inverse)
Determinant measure (M5 - IDET):



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