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Indicators of product sophistication and factor intensities: Measurement matters

Huber, Stephan


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 ...


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