Economic complexity and inclusion of regional economies
Mikhail Afanasiev,Aleksander Kudrov +1 more
- Vol. 106, pp 01003
TLDR
In this article, a probabilistic interpretation of the elements of the matrix, which is used to assess the economic complexity in accordance with the traditional approach, is presented, on the basis of which aggregate indicators are introduced that characterize the nesting of the structures of strong sectors of regional economies.Abstract:
The paper presents a probabilistic interpretation of the elements of the matrix, which is used to assess the economic complexity in accordance with the traditional approach. Their properties are given, on the basis of which aggregate indicators are introduced that characterize the nesting of the structures of strong sectors of regional economies. It is shown that aggregate nesting indicators are statistically significant explanatory variables for economic complexity. It is proved that the used procedure for calculating the economic complexity is correct in the sense of the existence and uniqueness of the solution. It is shown that the data that are used to assess the economic complexity in accordance with the author’s approach allow to reflect the formation of value chains and groups of related sectors focused on both the external and internal markets. For this economic complexity, calculated on regional data, its high values correspond to large values of the aggregated nesting indicators. Low values of economic complexity correspond to low values of nesting indicators.read more
References
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Non-negative Matrices and Markov Chains
TL;DR: Finite Non-Negative Matrices as mentioned in this paper are a generalization of finite stochastic matrices, and finite non-negative matrices have been studied extensively in the literature.
Journal ArticleDOI
The building blocks of economic complexity
TL;DR: It is shown that it is possible to quantify the complexity of a country's economy by characterizing the structure of this bipartite network in which countries are connected to the products they export, and that deviations from this relationship are predictive of future growth.
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What You Export Matters
TL;DR: The authors construct an index of the "income level of a country's exports," document its properties, and show that it predicts subsequent economic growth, and demonstrate this proposition formally and adduce some empirical support.
Journal ArticleDOI
What you export matters
TL;DR: The authors construct an index of the "income level of a country's exports," document its properties, and show that it predicts subsequent economic growth, and demonstrate this propo- sition formally and adduce some empirical support for it.
Journal ArticleDOI
Economic development as self-discovery
Ricardo Hausmann,Dani Rodrik +1 more
TL;DR: In this article, the authors develop a general-equilibrium framework for a small open economy to clarify the analytical and normative issues, and highlight two failures of the laissez-faire outcome: there is too little investment and entrepreneurship ex ante, and too much production diversification ex post.