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Normalization and Aggregation:
Normalization is applied to bring all the measures onto the same scale. Each measure for sector i is subtracted by the minimum value of the measure across all sectors and divided by the range (max - min) of the measure across all sectors. Mathematically, if
�
�
x
i
is the measure for sector i, the normalized measure
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�
n
i
is given by
�
�
=
�
�
−
min
(
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)
max
(
�
)
−
min
(
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)
n
i
=
max(x)−min(x)
x
i
−min(x)
. After normalization, each measure ranges from 0 to 1. Aggregation is done by summing the normalized scores across different measures for each sector to provide a single score for the sector.
These calculations are key to understanding the relative importance and interconnectedness of different sectors in an economy.