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Product Complexity and Economic Development

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

Abstract

We rank 5,107 products and 124 countries according to the Hidalgo and Hausmann (2009) measures of complexity. We find that: (1) 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; (2) the most complex economies in the world are Japan, Germany, and Sweden, and the least complex, Cambodia, Papua New Guinea, and Nigeria; (3) 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 (4) export shares of the more complex products increase with income, while export shares of the less complex products decrease with income. Finally, we relate the measure of product complexity with the concept of Complex Products and Systems, and find a high degree of conformity between them.

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Bibliographic Info

Paper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_616.

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Date of creation: Sep 2010
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Handle: RePEc:lev:wrkpap:wp_616

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Related research

Keywords: Capabilities; Development; Economic Complexity; Diversification; Method of Reflections; Product Complexity; Ubiquity;

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References

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Citations

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Cited by:
  1. Sandra PONCET & Felipe STAROSTA DE WALDEMAR, 2012. "Export upgrading and growth: the prerequisite of domestic embeddedness," Working Papers P57, FERDI.
  2. Gnidchenko, Andrey A., 2012. "Новый Метод Оценки Структуры И Базы Экспортного Потенциала
    [The new method for estimating the structure and the basis of export potential]
    ," MPRA Paper 43691, University Library of Munich, Germany.
  3. Jesus Felipe & John McCombie, 2010. "Modeling Technological Progress and Investment in China: Some Caveats," Economics Working Paper Archive wp_643, Levy Economics Institute.
  4. 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.
  5. 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).
  6. 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).
  7. 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.
  8. Chen, Xi & Funke, Michael, 2013. "The dynamics of catch-up and skill and technology upgrading in China," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 465-480.

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