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Product Group – H0 6d Hausmann Tecnological Intensity ITOCD1

Product Group – H0 6d Hausmann Tecnological Intensity ITOCD1

The Hausman index uses the observed export flows by countries as a way of calculating the level of sophistication of a product. It is calculated as a weighted average of the GDP per capita of the countries that export the product. The weights correspond to the relative comparative advantage of each country in exporting the good. In this sense, the sophistication (PRODY) of a product is therefore not an engineering notion but provides a measure of the income content of a product. It is also worth noting that the Hausmann et al. (2007) definition of revealed comparative advantage is different to the standard Balassa (1984) index.

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