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Assessing Economic Complexity with Input-Output Based Measures

Author

Listed:
  • J. Carlos Lopes
  • João Dias
  • J. Ferreira do Amaral

Abstract

Economic complexity can be defined as the level of interdependence between the component parts of an economy. In input-output systems, intersectoral connectedness is a crucial feature of analysis, and there are many different methods for measuring it. Most of the measures, however, have drawbacks that prevent them from being used as a good indicator of economic complexity, because they were not explicitly made with this purpose in mind. In this paper, we present, discuss and compare empirically different indexes of economic complexity as intersectoral connectedness, using the interindustry tables of several OECD countries.

Suggested Citation

  • J. Carlos Lopes & João Dias & J. Ferreira do Amaral, 2008. "Assessing Economic Complexity with Input-Output Based Measures," Working Papers Department of Economics 2008/49, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    • Handle: RePEc:ise:isegwp:wp492008
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    Cited by:

    1. Robles Teigeiro, Luis & Díaz, Bárbara, 2014. "Estimation of multipliers for the activity of hotels and restaurants," Tourism Management, Elsevier, vol. 40(C), pages 27-34.

    More about this item

    Keywords

    input-output analysis; intersectoral connectedness; economic complexity;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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