Krugman specialization index

Definition

Economics

  • A measure of the extent to which a country's production patterns differ from those of a comparison group of countries. It runs from zero, if the country and group produce the same goods in the same proportions, to two if they produce only different goods. Letting si be the share of industry i in the country's output and si* be that share in the group, the index is K=Si|si–si*|. Due to Krugman (1991a, p. 76).
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