Loading chart...
Formulas, definitions, and academic references for all indices used in TradeWeave
HHI = Σᵢ sᵢ²Sum of squared export shares across all products. Ranges 0 (perfectly diversified) to 1 (single-product exporter). HHI < 0.15 = competitive, 0.15-0.25 = moderate, > 0.25 = concentrated.
Ref: Herfindahl (1950); Hirschman (1945)
G = (1/n) · (n+1 − 2·(Σᵢ(n+1−i)·yᵢ) / Σᵢyᵢ)Measures inequality of export distribution across products. 0 = perfectly equal, 1 = maximum inequality.
Ref: Gini (1912)
T = Σᵢ sᵢ · ln(sᵢ / (1/n))Entropy-based diversification measure decomposable into between-sector and within-sector components. Higher = more concentrated.
Ref: Theil (1967); Cadot, Carrère & Strauss-Kahn (2011)
HHI(t), Products(t), Partners(t) for all tTracks product HHI, number of exported products, and number of export partners over time to show diversification trajectory.
Ref: Cadot, Carrère & Strauss-Kahn (2011)
RCA = (Xᵢₖ / Xᵢ) / (Xwₖ / Xw)Balassa index. Ratio of product k's share in country i's exports to its share in world exports. RCA > 1 = comparative advantage.
Ref: Balassa (1965)
MI = (Xₖ − Mₖ) / (Xₖ + Mₖ)Net trade position per product. Ranges −1 (pure importer) to +1 (pure exporter).
Ref: Michaely (1962)
LFI = 100 · [(xₖ−mₖ)/(xₖ+mₖ) − (X−M)/(X+M)] · (xₖ+mₖ)/(X+M)Comparative advantage adjusted for overall trade balance. Positive = advantage, factoring out macroeconomic imbalances.
Ref: Lafay (1992)
Compare RCA(t−5) vs RCA(t)Classifies products as Classic (CA→CA), Emerging (no CA→CA), or Disappearing (CA→no CA). Shows structural transformation.
Ref: Proudman & Redding (2000)
ΔX = Intensive + Extensive_product − ExitDecomposes export growth into: Intensive (existing products grow), Extensive (new products), Exit (dropped products).
Ref: Hummels & Klenow (2005); Dennis & Shepherd (2011)
TII = Σ wₖ · share(k)Classifies exports by Lall technology levels (Primary→High-Tech) and computes weighted average intensity score.
Ref: Lall (2000)
ToT = (PX / PM) = (ΣXᵢ/ΣQXᵢ) / (ΣMᵢ/ΣQMᵢ)Ratio of aggregate export unit price to import unit price. ToT > 1 = favorable.
Ref: Standard definition
Openness = (X + M) / GDPShare of trade in GDP. Higher = more open economy.
Ref: Standard definition
GL = 1 − |Xₖ − Mₖ| / (Xₖ + Mₖ)Measures extent of two-way trade in the same product category. GL→1 = intra-industry, GL→0 = inter-industry.
Ref: Grubel & Lloyd (1975)
FK = Σₖ min(sᵢₖ, sⱼₖ)Overlap between two countries' export structures. FK=1 = identical bundles, FK=0 = completely different.
Ref: Finger & Kreinin (1979)
TCI = 100 · (1 − Σₖ |mⱼₖ − xᵢₖ| / 2)How well country A's exports match country B's import needs. TCI→100 = perfect match. Used in FTA feasibility.
Ref: Michaely (1996)
Eigenvector method on Mcp matrixMeasures the knowledge and capabilities embedded in a country's productive structure.
Ref: Hidalgo & Hausmann (2009)
Sister eigenvector to ECIProduct-level complexity. Products with high PCI require diverse, sophisticated capabilities.
Ref: Hidalgo & Hausmann (2009)
EXPY = Σₖ sₖ · PRODYₖIncome-weighted export sophistication. PRODY represents income level associated with exporting product k.
Ref: Hausmann, Hwang & Rodrik (2007)
HHI_d = Σⱼ (Xⱼ / X)²HHI computed over export destinations. Measures geographic dependency.
Ref: Standard definition
Residual = ln(Trade_actual) − ln(Trade_predicted)Gravity model predicts expected trade based on GDP, distance, borders, language. Negative residual = untapped potential.
Ref: Tinbergen (1962); Anderson & van Wincoop (2003)
S(t) = P(duration ≥ t)Kaplan-Meier style survival function for new export products. Tracks survival rates after 1, 3, 5, 10 years.
Ref: Besedes & Prusa (2006)