Measuring Localization in the Age of Economic Globalization
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This paper explores the clustering of economic activities in domestic sectors amid an interconnected global economy. It presents agglomeration indexes that can be used to help policy makers plan which sectors to prioritize.
The agglomeration indexes together aim to show how domestic sectors contribute to the global economy. The indexes measure the scale of value-added sourced from and/or absorbed into domestic economy sectors and the concentration of value added in the domestic market. They are extended to account for the distribution of activities within domestic sectors.
- Measuring Agglomeration
- Capturing Concentration of Activities within the Domestic Sectors
- Comparing Agglomeration with Existing Indexes
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