We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Indicators of product sophistication and factor intensities: Measurement matters.
- Authors
Huber, Stephan
- Abstract
The widely used PRODY indicator by Hausmann et al. [1] [What you Export Matters; Journal of Economic Growth: 12, 1-25] allows the calculation of product sophistication and factor intensities at high levels of disaggregation. In this paper I deal with its measurement, its conceptional limitations, its sensitivity to subjective decision making, its alternatives and how to reap the best possible benefit from its usage. I introduce a theory-based alternative and investigate the sensitivity of empirical results with respect to different measurements. In particular, I re-estimate the main results of Hausmann et al. [1] with 75 variants of measurement. Small changes to the sample, the aggregation level, or the construction of the indicator can make a difference. Moreover, I offer two STATA programs that ease the calculation of various PRODY variants.
- Subjects
ECONOMIC development; INTERNATIONAL trade; ENDOWMENT reports; DESCRIPTIVE statistics; HUMAN capital
- Publication
Journal of Economic & Social Measurement, 2017, Vol 42, Issue 1, p27
- ISSN
0747-9662
- Publication type
Article
- DOI
10.3233/JEM-170440