How to calculate the product similarity index and the trade complementarity index

Complementarity is a measure of how well a country's exports of a product match another country's imports. **The trade complementarity index is expressed by the formula as:

cij=rcaxik×rcamjk

In the formula: CIJ represents the ** complementarity index between country I's exports and country J's imports; RCAXIK represents the explicit comparative advantage index of country i in the K category of goods (described above); RCAMJK represents the explicit comparative disadvantage index of country J in category K goods. where rcamjk=(mjk mj) (wk w), where mjk is the import value of class k goods in country j, and mj is the total import value of all goods in country j.

The larger the rcamjk, the more disadvantaged the country is in the production of such goods. By definition, when the main commodity category exported by one country is consistent with the main commodity category imported from another country, the greater the Complementarity Index (CIJ) between the two countries; The reverse is smaller. Generally speaking, when the value of CIJ is greater than 1, it indicates that there is a **complementarity between the two countries in commodity k; When the value of cij is less than 1, the conclusion is reversed.

The size of the export competition. By measuring the export market similarity index of agricultural products in which both sides have comparative advantages, the most competitive product varieties of the two countries can be determined. The results show that the export market similarity index of Chinese and Indian agricultural products is relatively high, but due to the low similarity index of their export products, the overall export competitiveness of agricultural products of the two countries is high.

The similarity index of species diversity, Jaccard index: cj=c (a+b-c)a, b are the number of species in the two communities, and c is the number of species in the two communities

The ** complementarity index between country i exports and country j imports is expressed in cij as follows:

cij=σ[(rcaxik×rcamjk)]×wk/w] 。

where rcaxik denotes the comparative advantage of country i in product k, as measured by exports; rcamjk denotes the comparative advantage of country j in product k, as measured by imports; WK represents the total amount of international ** of K products; w represents the ** amount of all products in the world.

Graduation is a form of academics, and in order to further and master the writing rules and characteristics of graduation, graduation needs to be classified. Due to the different content and nature of graduation itself, the research field, object, method, and expression are different, therefore, there are different classification methods for graduation.

According to the nature of the content and the different research methods, graduation can be divided into theoretical, experimental, descriptive and designal. The last three are mainly forms that science and engineering students can choose, and they will not be introduced here. Liberal arts college students generally write theoretical**.

Theoretical concrete can be divided into two kinds: one is to take pure abstract theory as the research object, and the research method is rigorous theoretical derivation and mathematical operation, and some also involve experiments and observations to verify the correctness of the argument. The other is to take the investigation of objective things and phenomena, the observation data obtained from the investigation and investigation and the relevant literature and data as the research object, and the research method is to analyze, synthesize, generalize, and abstract the relevant data, and put forward some new theories and new insights through induction, deduction, and analogy.

According to the nature of the discussion, graduation can be divided into establishment and refutation. Argumentative graduation** refers to the positive presentation and argumentation of one's own views and claims. An article that focuses on arguments is argumentative.

It is required that the arguments are clear, the arguments are sufficient, the arguments are rigorous, and the reason and facts are convincing. Argumentative graduation** refers to the establishment of one's own arguments and propositions by refuting the arguments of others. If graduation focuses on refutation and refutes some erroneous views, opinions, and theories, it is a rebuttal graduation.

In addition to the requirements of arguments, arguments, and arguments, refutation also requires-for-tat confrontation and argumentation.

Every country in the world has something that is good at and something that it is not good at, and making full use of their respective advantages through exchange to make their lives better is the complementarity of the world.

China and the United States have a strong complementarity, and there is a trend of further strengthening. At present, the huge amount of money between China and the United States is a manifestation of complementarity, as long as the normal economic and trade exchanges between the two countries are adhered to, under the framework of freedom, there is still a lot of room for development of this complementarity.

In order to reveal the complementarity of China and the United States** in more depth, the export product similarity index (Finger and Kreininin, 1979) can be used to measure the similarity of Chinese and American exports in the world market. On the contrary, if the index declines over time, it means that the degree of professional division of labor between the two countries in the tertiary market is rising, and the relationship between the two countries is complementary.

First of all, China is the largest developing country in the world, with a huge population, that is, with cheap and abundant labor and a vast consumer market. The United States is the largest developing country in the world, with developed scientific and technological funds and technical talents. The economies of both countries are very developed, and with the economic globalization of the two countries, the economic ties between the two countries are getting closer and closer, China needs the United States, and the United States needs China even more.

Just like Made in China and American Apples, China and the United States need each other to consume each other's products, obtain economic benefits, satisfy national interests, and achieve the common development of the two nations. Therefore, only complementarity can be complete.

China's products are mainly labor-intensive, low-cost, and in a surplus for a long time, while the products of Europe and the United States are mainly technology-intensive, and cooperation should be strengthened.

Reference - Han Han on Haidian District, Beijing.