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Measuring Regional Development with the Network Theory Approach
[Использование Теории Сетей При Составлении Рейтингов Развития Региональных Экономик]

Author

Listed:
  • Lyubimov, Ivan L. (Любимов, Иван)

    (Russian Presidential Academy of National Economy and Public Administration)

  • Gvozdeva, Margarita V. (Гвоздева, Маргарита)

    (Russian Presidential Academy of National Economy and Public Administration)

  • Lysyuk, Maria A. (Лысюк, Мария)

    (Russian Presidential Academy of National Economy and Public Administration)

Abstract

In this paper, we make a detailed description of a network method which we then use to calculate a new ranking that measures the export complexity of Russian regions. Even though this ranking directly measures the complexity of regional export baskets, indirectly it also reflects other features of regional economies, as the ability to supply goods to international markets results from the availability of different capabilities in a particular region, such as know-how, equipment, infrastructure etc. At the same time, the calculation of the ranking does not require a lot of various data, as well as constructing numerous variables characterizing different aspects of regional development. The method which is discussed in this paper has several important advantages over a number of alternative regional rankings. In particular, the latter employ the assumption of substitutability among various factors that are taken into account when these rankings are calculated. However, this assumption is often too strong. Moreover, these rankings are not based on any well-defined theoretical structure, and the choice of variables which are used to calculate these rankings is not explicitly explained. In contrast, the method which is discussed in this paper has a well-defined theoretical structure and uses no strong assumptions. At the same time, the resulting ranking is strongly correlated with other regional rankings, which indicates that the former also contains a significant share of information present in the latter, which emphasizes again the ability of the new ranking to capture different important features of regional development.

Suggested Citation

  • Lyubimov, Ivan L. (Любимов, Иван) & Gvozdeva, Margarita V. (Гвоздева, Маргарита) & Lysyuk, Maria A. (Лысюк, Мария), 2018. "Measuring Regional Development with the Network Theory Approach [Использование Теории Сетей При Составлении Рейтингов Развития Региональных Экономик]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 206-233, June.
    • Handle: RePEc:rnp:ecopol:ep1828
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    References listed on IDEAS

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    1. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    2. Michele Coscia & Ricardo Hausmann & Frank Neffke, 2016. "Exploring the Uncharted Export: an Analysis of Tourism-Related Foreign Expenditure with International Spend Data," Papers 1611.09893, arXiv.org.
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    6. Hausmann, Ricardo & Hidalgo, Cesar A. & Stock, Daniel P. & Yildirim, Muhammed A., 2014. "Implied Comparative Advantage," Working Paper Series rwp14-003, Harvard University, John F. Kennedy School of Government.
    7. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
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    9. Hausmann, Ricardo & Klinger, Bailey, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," Working Paper Series rwp06-041, Harvard University, John F. Kennedy School of Government.
    10. Jian Gao & Tao Zhou, 2017. "Quantifying China's Regional Economic Complexity," Papers 1703.01292, arXiv.org, revised Nov 2017.
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    Cited by:

    1. Shubin, I., 2021. "Correlation between economic complexity and economic development in different types of Russian regions," Journal of the New Economic Association, New Economic Association, vol. 51(3), pages 144-161.
    2. Lyubimov, Ivan L. (Любимов, Иван) & Kazakova, Maria V. (Казакова, Мария) & Gvozdeva, Margarita (Гвоздева, Маргарита) & Ospanova, Aigerim G. (Оспанова, Айгерим), 2019. "The Failure and Triumph of Economic Complexity: Economic History of Argentina and South Korea in the Second Half of the 20th Century [Провал И Триумф Экономического Усложнения: История Аргентины И ," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 8-35, October.
    3. Lyubimov, I. & Iakubovskii, I., 2020. "How to make economic complexity index more complex: Taking export geography into account," Journal of the New Economic Association, New Economic Association, vol. 47(3), pages 12-39.

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    More about this item

    Keywords

    regional development; export complexity; network theory; centrality.;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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