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Product complexity and economic development

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Author Info

  • Felipe, Jesus
  • Kumar, Utsav
  • Abdon, Arnelyn
  • Bacate, Marife

Abstract

Development is a process of transforming a country's economic structure towards the production and export of more complex products. We use Hidalgo and Hausmann's (2009) method of reflections to compute measures of product and country complexity, and rank 5107 products and 124 countries. We find that: (i) the most complex products are in machinery, chemicals, and metals, while the least complex products are raw materials and commodities, wood, textiles, and agricultural products; (ii) the most complex economies in the world are Japan, Germany, and Sweden, and the least complex, Cambodia, Papua New Guinea, and Nigeria; (iii) the major exporters of the more complex products are the high-income countries, while the major exporters of the less complex products are the low-income countries; and (iv) export shares of the more complex products increase with income, while export shares of the less complex products decrease with income.

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Bibliographic Info

Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 23 (2012)
Issue (Month): 1 ()
Pages: 36-68

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Handle: RePEc:eee:streco:v:23:y:2012:i:1:p:36-68

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Web page: http://www.elsevier.com/locate/inca/525148

Related research

Keywords: Capabilities; Economic complexity; Diversification; Product complexity; Ubiquity;

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Cited by:
  1. Clovis Freire, . "Productive Capacities in Asia and the Pacific," MPDD Working Paper Series WP/11/17, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  2. Clovis Freire, . "Building Productive Capacities: Challenges and Opportunities for Least Developed Countries," MPDD Working Paper Series WP/12/02, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  3. Jesus Felipe & John McCombie, 2010. "Modeling Technological Progress and Investment in China: Some Caveats," Economics Working Paper Archive wp_643, Levy Economics Institute, The.
  4. Sandra Poncet & Felipe Starosta de Waldemar, 2012. "Export upgrading and growth: the prerequisite of domestic embeddedness," Working Papers 2012-26, CEPII research center.
  5. Arnelyn Abdon & Jesus Felipe, 2011. "The Product Space: What Does It Say About the Opportunities for Growth and Structural Transformation of Sub-Saharan Africa?," Economics Working Paper Archive wp_670, Levy Economics Institute, The.
  6. Funke, Michael & Chen, Xi, 2012. "The dynamics of catch-up and skill and technology upgrading in China," BOFIT Discussion Papers 13/2012, Bank of Finland, Institute for Economies in Transition.
  7. S. Devrim Yilmaz & Burak Saltoglu, 2013. "Why is it so Difficult and Complex to Solve the Euro Problem?," Centre for Growth and Business Cycle Research Discussion Paper Series 180, Economics, The Univeristy of Manchester.
  8. Burak Saltoðlu & Devrim Yýlmaz, 2013. "Why is it so Difficult and Complex to Solve the Euro Problem?," Working Papers 2013/02, Bogazici University, Department of Economics.

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