IDEAS home Printed from https://ideas.repec.org/a/ekm/repojs/v44y2024i4p730-752id2480.html
   My bibliography  Save this article

Economic complexity and elasticity ratio: a theoretical and empirical approach

Author

Listed:
  • André Mellini
  • Guilherme Jonas Costa da Silva

Abstract

This paper analyzes the role of economic complexity in the ratio of Thirlwall’selasticities, fundamental to understanding the reason for the unequal growth of countries. Tothis end, a theoretical model is used for a group of nations. Differences in growth ratesamong countries are associated with different ratios of income elasticities of exports and imports.According to econometric estimates, the country that manages to increase the economiccomplexity of its export basket, the investment/GDP ratio and has a lower GDP per capitaimproves the elasticities ratio and, therefore, its long-term growth. In other words, theresults are categorical in the sense of demonstrating the central role of these policies for thecountry to advance in the process of structural change and move towards the production of more complex manufactured goods, because these can ensure sustainable economic growth,that is, compatible with the equilibrium of the balance of payments. JEL Classification: C2; C22; F14; F41; F43.

Suggested Citation

  • André Mellini & Guilherme Jonas Costa da Silva, 2024. "Economic complexity and elasticity ratio: a theoretical and empirical approach," Brazilian Journal of Political Economy, Center of Political Economy, vol. 44(4), pages 730-752.
    • Handle: RePEc:ekm:repojs:v:44:y:2024:i:4:p:730-752:id:2480
    as

    Download full text from publisher

    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2480/2412
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Economic complexity; Thirlwall’s Law; international trade; economic growth; structural change;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    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:ekm:repojs:v:44:y:2024:i:4:p:730-752:id:2480. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Brazilian Journal of Political Economy (Brazil) (email available below). General contact details of provider: https://centrodeeconomiapolitica.org/repojs/index.php/journal/ .

    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.