Import diversity provides a buffer against shocks that may hit specific countries. In today’s post by Jan Smuts, we compare the Shannon Index across food import categories for South Africa. The Shannon Index measures diversity as the sum of each partner’s contribution to South Africa’s import basket for a specific good, multiplied by the log of the contribution. While there is a good diversification among starchy staples, animal products are generally concentrated. Across the different groups, there is a positive trend in diversification over the total value of imports.
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