IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/171379.html
   My bibliography  Save this article

Economic Complexity and Human Development: DEA performance measurement in Asia and Latin America

Author

Listed:
  • Ferraz, Diogo
  • Moralles, Hérick Fernando
  • Suarez Campoli, Jéssica
  • Ribeiro de Oliveira, Fabíola Cristina
  • do Nascimento Rebelatto, Daisy Aparecida

Abstract

Economic growth is not the unique factor to explain human development. Due to that many authors have prioritized studies to measure the Human Development Index. However, these indices do not analyze how Economic Complexity can increase Human Development. The aim of this paper is to determine the efficiency of a set of nations from Latin America and Asia, to measure a country’s performance in converting Economic Complexity into Human Development, between 2010 and 2014. The method used was Data Envelopment Analysis (DEA), through the Variable Returns of Scale (VRS) Model and Window Analysis. Results showed in 2014, all Asian countries were efficient except China and the Philippines, and Cuba was the benchmark for inefficient countries. Window Analysis showed Japan, Republic of Korea and Singapore were efficient over time. This result confirms the initial hypothesis of this article: the more complex countries are more efficient in generating Human Development.

Suggested Citation

  • Ferraz, Diogo & Moralles, Hérick Fernando & Suarez Campoli, Jéssica & Ribeiro de Oliveira, Fabíola Cristina & do Nascimento Rebelatto, Daisy Aparecida, 2018. "Economic Complexity and Human Development: DEA performance measurement in Asia and Latin America," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(4), pages 839-853.
    • Handle: RePEc:zbw:espost:171379
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/171379/1/Economic_Complexity_and_Human_Development_final.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ferrarini, Benno & Scaramozzino, Pasquale, 2016. "Production complexity, adaptability and economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 52-61.
    2. Sen, Amartya, 2001. "Development as Freedom," OUP Catalogue, Oxford University Press, number 9780192893307.
    3. Sen, Amartya, 1981. "Public Action and the Quality of Life in Developing Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(4), pages 287-319, November.
    4. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    5. -, 2009. "CEPAL Review no.98," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Saviotti, Pier Paolo & Pyka, Andreas, 2013. "From necessities to imaginary worlds: Structural change, product quality and economic development," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1499-1512.
    7. Paula Bustos & Bruno Caprettini & Jacopo Ponticelli, 2016. "Agricultural Productivity and Structural Transformation: Evidence from Brazil," American Economic Review, American Economic Association, vol. 106(6), pages 1320-1365, June.
    8. -, 2016. "Economic Survey of Latin America and the Caribbean 2016: The 2030 Agenda for Sustainable Development and the challenges of financing for development," Estudio Económico de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 40327 edited by Eclac, September.
    9. Saviotti, Pier Paolo & Pyka, Andreas & Jun, Bogang, 2016. "Education, structural change and economic development," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 55-68.
    10. Hausmann, Ricardo & Hidalgo, Cesar, 2014. "The Atlas of Economic Complexity: Mapping Paths to Prosperity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262525429, December.
    11. Despotis, D.K., 2005. "Measuring human development via data envelopment analysis: the case of Asia and the Pacific," Omega, Elsevier, vol. 33(5), pages 385-390, October.
    12. Suri, Tavneet & Boozer, Michael A. & Ranis, Gustav & Stewart, Frances, 2011. "Paths to Success: The Relationship Between Human Development and Economic Growth," World Development, Elsevier, vol. 39(4), pages 506-522, April.
    13. Esteban-Pretel, Julen & Sawada, Yasuyuki, 2014. "On the role of policy interventions in structural change and economic development: The case of postwar Japan," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 67-83.
    14. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February.
    15. Murat Ungor, 2017. "Productivity Growth and Labor Reallocation: Latin America versus East Asia," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 25-42, March.
    16. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    17. Chao-Hsi Huang & Kai-Fang Teng & Pan-Long Tsai, 2010. "Inward and outward foreign direct investment and poverty: East Asia vs. Latin America," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 763-779, December.
    18. Unknown, 2016. "Energy for Sustainable Development," Conference Proceedings 253270, Guru Arjan Dev Institute of Development Studies (IDSAsr).
    19. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    20. Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January.
    21. Antonelli, Cristiano, 2016. "Technological congruence and the economic complexity of technological change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 15-24.
    22. -, 2009. "CEPAL Review no. 99," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    23. Dominik Hartmann & Cristian Jara-Figueroa & Miguel Guevara & Alex Simoes & C'esar A. Hidalgo, 2017. "The structural constraints of income inequality in Latin America," Papers 1701.03770, arXiv.org, revised Jan 2017.
    24. Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January.
    25. Ernest Reig-Martínez, 2013. "Social and Economic Wellbeing in Europe and the Mediterranean Basin: Building an Enlarged Human Development Indicator," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(2), pages 527-547, April.
    26. Edward Barbier & John Bugas, 2014. "Structural change, marginal land and economic development in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-29, December.
    27. Edward Barbier, 2014. "Erratum to: Structural change, marginal land and economic development in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-1, December.
    28. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2006. "Introduction to Data Envelopment Analysis and Its Uses," Springer Books, Springer, number 978-0-387-29122-2, September.
    29. D K Despotis, 2005. "A reassessment of the human development index via data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(8), pages 969-980, August.
    30. Baldacci, Emanuele & Clements, Benedict & Gupta, Sanjeev & Cui, Qiang, 2008. "Social Spending, Human Capital, and Growth in Developing Countries," World Development, Elsevier, vol. 36(8), pages 1317-1341, August.
    31. Sakiko Fukuda-Parr, 2003. "The Human Development Paradigm: Operationalizing Sen'S Ideas On Capabilities," Feminist Economics, Taylor & Francis Journals, vol. 9(2-3), pages 301-317.
    32. -, 2009. "CEPAL Review no.97," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    33. Joe Zhu, 2014. "Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Quantitative Models for Performance Evaluation and Benchmarking, edition 3, chapter 1, pages 1-9, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sevde Arpaci‐Ayhan, 2023. "Foreign aid as a catalyst for improving productive capabilities in recipients," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(5), pages 738-760, July.
    2. Richard Chauke & Thobeka Ncanywa, 2021. "Infrastructure development and economic complexity in South Africa. Running title: Can infrastructure development influence economic complexity?," Technium Social Sciences Journal, Technium Science, vol. 26(1), pages 488-501, Decembrie.
    3. repec:thr:techub:10026:y:2021:i:1:p:488-501 is not listed on IDEAS
    4. Ben-Hur Francisco Cardoso & Eva Yamila da Silva Catela & Guilherme Viegas & Fl'avio L. Pinheiro & Dominik Hartmann, 2023. "Export complexity, industrial complexity and regional economic growth in Brazil," Papers 2312.07469, arXiv.org.
    5. Albassam, Bassam A., 2019. "Building an effective knowledge management system in Saudi Arabia using the principles of good governance," Resources Policy, Elsevier, vol. 64(C).
    6. Diogo Ferraz & Enzo B. Mariano & Daisy Rebelatto & Dominik Hartmann, 2020. "Linking Human Development and the Financial Responsibility of Regions: Combined Index Proposals Using Methods from Data Envelopment Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(2), pages 439-478, July.
    7. Emilie Le Caous & Fenghueih Huarng, 2020. "Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries," Sustainability, MDPI, vol. 12(5), pages 1-26, March.
    8. Semanur SoyyiÄŸit, 2019. "The Relationship Between Middle Income Trap and Structural Transformation: The Case of Selected Countries," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 11(4), pages 217-235, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emilie Le Caous & Fenghueih Huarng, 2020. "Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries," Sustainability, MDPI, vol. 12(5), pages 1-26, March.
    2. Ferraz, Diogo & Moralles, Herick Fernando & Costa, Naijela Silveira da & Nascimento, Daisy do, 2022. "Economic complexity and human development: comparing standard and slack-based data envelopment analysis models," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    3. Nikolaos Zirogiannis & Kerry Krutilla & Yorghos Tripodis & Kathryn Fledderman, 2019. "Human Development Over Time: An Empirical Comparison of a Dynamic Index and the Standard HDI," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 773-798, April.
    4. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Poverty Reduction in Recipient-Countries," EconStor Preprints 213807, ZBW - Leibniz Information Centre for Economics.
    5. Pier-Paolo Saviotti & Andreas Pyka¤ & Bogang Jun, 2020. "Diversification, structural change, and economic development," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1301-1335, November.
    6. Athanasios Lapatinas, 2016. "Economic complexity and human development: a note," Economics Bulletin, AccessEcon, vol. 36(3), pages 1441-1452.
    7. Muhammad Ali & Uwe Cantner, 2020. "Economic diversification and human development in Europe," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 211-235, June.
    8. Seung Hwan Kim & Jeong hwan Jeon & Anwar Aridi & Bogang Jun, 2022. "Factors that affect the technological transition of firms toward the industry 4.0 technologies," Papers 2209.02239, arXiv.org.
    9. Naima Chrid & Sami Saafi & Mohamed Chakroun, 2021. "Export Upgrading and Economic Growth: a Panel Cointegration and Causality Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 811-841, June.
    10. Diogo Ferraz & Fernanda P. S. Falguera & Enzo B. Mariano & Dominik Hartmann, 2021. "Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    11. Hartmann, Dominik & Guevara, Miguel R. & Jara-Figueroa, Cristian & Aristarán, Manuel & Hidalgo, César A., 2017. "Linking Economic Complexity, Institutions, and Income Inequality," World Development, Elsevier, vol. 93(C), pages 75-93.
    12. Campi, Mercedes & Dueñas, Marco & Fagiolo, Giorgio, 2021. "Specialization in food production affects global food security and food systems sustainability," World Development, Elsevier, vol. 141(C).
    13. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    14. Ferraz, Diogo & Moralles, Herick Fernando & Campoli, Jéssica & do Nascimento Rebelatto, Daisy Aparecida, 2017. "Economic Complexity and Quality of Life in Latin America and Asia between 2010 and 2014," EconStor Conference Papers 171459, ZBW - Leibniz Information Centre for Economics.
    15. Diogo Ferraz & Enzo B. Mariano & Daisy Rebelatto & Dominik Hartmann, 2020. "Linking Human Development and the Financial Responsibility of Regions: Combined Index Proposals Using Methods from Data Envelopment Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(2), pages 439-478, July.
    16. Nguyen, Canh Phuc, 2022. "Does economic complexity matter for the shadow economy?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 210-227.
    17. Roberto Antonietti & Chiara Burlina, 2023. "Exploring the entropy-complexity nexus. Evidence from Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 257-283, April.
    18. Pinheiro, Flávio L. & Hartmann, Dominik & Boschma, Ron & Hidalgo, César A., 2022. "The time and frequency of unrelated diversification," Research Policy, Elsevier, vol. 51(8).
    19. Mercedes Campi & Marco Duenas & Giorgio Fagiolo, 2020. "Specialization in food production, global food security and sustainability," LEM Papers Series 2020/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    20. Buhari Doğan & Oana M. Driha & Daniel Balsalobre Lorente & Umer Shahzad, 2021. "The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 1-12, January.

    More about this item

    Keywords

    Data Envelopment Analysis (DEA); Window Analysis; Economic Complexity; Human Development;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:171379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.