The network structure of economic output
TLDR
In this paper, the authors model the structure of the network by assuming that products require a large number of non-tradable inputs, or capabilities, and that countries differ in the completeness of the set of capabilities they have.Abstract:
Much of the analysis of economic growth has focused on the study of aggregate output.Here,wedeviatefromthistraditionandlookinsteadatthestructureofoutputembod- ied in the network connecting countries to the products that they export. We characterize this network using four structural features: the negative relationship between the diversification of a country and the average ubiquity of its exports, and the non-normal distributions for product ubiquity, country diversification and product co-export. We model the structure of the network by assuming that products require a large number of non-tradable inputs, or capabilities, and that countries differ in the completeness of the set of capabilities they have. We solve the model assuming that the probability that a country has a capability and that a product requires a capability are constant and calibrate it to the data to find that it accounts well for all of the network features except for the heterogeneity in the distribution of coun- try diversification. In the light of the model, this is evidence of a large heterogeneity in the distribution of capabilities across countries. Finally, we show that the model implies that the increase in diversification that is expected from the accumulation of a small number of capabilities is small for countries that have a few of them and large for those with many. This implies that the forces that help drive divergence in product diversity increase with the complexity of the global economy when capabilities travel poorly.read more
Citations
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Revealed comparative advantage and the alternatives as measures of international specialization
TL;DR: This article provided an analysis of Balassa's "revealed comparative advantage" (RCA) and showed that when using RCA, it should be adjusted such that it becomes symmetric around its neutral value.
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Relatedness as driver of regional diversification: a research agenda
TL;DR: In this paper, the authors propose a critical assessment and identifies a number of crucial issues for future research, including disentanglement of various types of capabilities that make regions diversify, inclusion of more geographical wisdom in the study of regional diversification, like a focus on the effects of territory-specific contexts, such as institutions, and a thorough investigation in the conditioning factors of related and unrelated diversification in regions.
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The Emergence of New Industries at the Regional Level in Spain: A Proximity Approach Based on Product Relatedness
TL;DR: In this paper, the authors analyzed the emergence of new industries in 50 S panish regions at the NUTS 3 level in the period 1988-2008 and provided econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions.
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Toward understanding the impact of artificial intelligence on labor
Morgan R. Frank,David H. Autor,James Bessen,Erik Brynjolfsson,Erik Brynjolfsson,Manuel Cebrian,David J. Deming,Maryann P. Feldman,Matthew Groh,José Lobo,Esteban Moro,Esteban Moro,Dashun Wang,Hyejin Youn,Iyad Rahwan,Iyad Rahwan +15 more
TL;DR: The barriers that inhibit scientists from measuring the effects of AI and automation on the future of work are discussed and a decision framework that focuses on resilience to unexpected scenarios in addition to general equilibrium behavior is recommended.
Journal ArticleDOI
Measuring the intangibles: a metrics for the economic complexity of countries and products.
TL;DR: A detailed comparison of the results of this approach directly with those of the Method of Reflections by Hidalgo and Hausmann is presented, showing the better performance of the method and a more solid economic, scientific and consistent foundation.
References
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