Skip to main content
. 2018 Oct 12;20(10):783. doi: 10.3390/e20100783
C, P: Total number of countries and products
M: Binary matrix with element Mcp=1 if country c is a competitive country in exporting product p; Mcp=0 otherwise; export competitiveness is estimated by means of export volumes
Fc, Qp: Fitness of country c and quality (complexity) of product p at the fixed point
Pp: Inverse of the quality of product p; it is a sort of product “simplicity” (Pp=(Qp)1)
δ: Inhomogeneous parameter; this parameter is crucial in achieving a stable algorithm to evaluate the metrics; it will be eventually let go to 0 to get a parameter free metric
F˜c,P˜p: Rescaled versions of the corresponding un-tilded quantities: F˜c=Fcδ, P˜p=Pp/δ; these quantities do not depend on δ as soon as δ0 and are better suited to represent fitness and complexity rather than the un-tilded ones
Q˜p: Similar to the complexity Qp above, but for the new metrics calculated with the inhomogeneous algorithm: Q˜p=(P˜p1)1
K: Coproduction matrix with element Kcc equal to the number of the same products exported by countries c and c; K=MMT
Dc: Diversification of country c, i.e., the number of products the country c is competitive in exporting
Ic: Inefficiency of country c defined as Ic=DcF˜c; it represents the fitness penalty resulting from exporting goods that are also exported by other countries
Nc: Net-efficiency of country c; it is a de-trended version of the inefficiency; in the dataset considered NcDc0.75Ic; it represents how effectively a country diversifies its exported goods by focusing on products not exported by others, which are usually among the most complex ones