Assessing Economic Complexity with Input-Output Based Measures

1

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
n²

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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