IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1610.00274.html
   My bibliography  Save this paper

The complex dynamics of products and its asymptotic properties

Author

Listed:
  • Orazio Angelini
  • Matthieu Cristelli
  • Andrea Zaccaria
  • Luciano Pietronero

Abstract

We analyse global export data within the Economic Complexity framework. We couple the new economic dimension Complexity, which captures how sophisticated products are, with an index called logPRODY, a measure of the income of the respective exporters. Products' aggregate motion is treated as a 2-dimensional dynamical system in the Complexity-logPRODY plane. We find that this motion can be explained by a quantitative model involving the competition on the markets, that can be mapped as a scalar field on the Complexity-logPRODY plane and acts in a way akin to a potential. This explains the movement of products towards areas of the plane in which the competition is higher. We analyse market composition in more detail, finding that for most products it tends, over time, to a characteristic configuration, which depends on the Complexity of the products. This market configuration, which we called asymptotic, is characterized by higher levels of competition.

Suggested Citation

  • Orazio Angelini & Matthieu Cristelli & Andrea Zaccaria & Luciano Pietronero, 2016. "The complex dynamics of products and its asymptotic properties," Papers 1610.00274, arXiv.org, revised May 2017.
    • Handle: RePEc:arx:papers:1610.00274
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1610.00274
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2011. "Export Diversification: What's behind the Hump?," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 590-605, May.
    2. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    3. Manuel Sebastian Mariani & Alexandre Vidmer & Matus Medo & Yi-Cheng Zhang, 2015. "Measuring economic complexity of countries and products: which metric to use?," Papers 1509.01482, arXiv.org.
    4. Wu, Rui-Jie & Shi, Gui-Yuan & Zhang, Yi-Cheng & Mariani, Manuel Sebastian, 2016. "The mathematics of non-linear metrics for nested networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 460(C), pages 254-269.
    5. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    6. Peter Klimek & Ricardo Hausmann & Stefan Thurner, 2012. "Empirical Confirmation of Creative Destruction from World Trade Data," PLOS ONE, Public Library of Science, vol. 7(6), pages 1-9, June.
    7. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    8. Rui-Jie Wu & Gui-Yuan Shi & Yi-Cheng Zhang & Manuel Sebastian Mariani, 2016. "The mathematics of non-linear metrics for nested networks," Papers 1603.06407, arXiv.org.
    9. Manuel Mariani & Alexandre Vidmer & Matsúš Medo & Yi-Cheng Zhang, 2015. "Measuring economic complexity of countries and products: which metric to use?," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 88(11), pages 1-9, November.
    10. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    11. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
    12. Emanuele Pugliese & Andrea Zaccaria & Luciano Pietronero, 2014. "On the convergence of the Fitness-Complexity Algorithm," Papers 1410.0249, arXiv.org, revised Dec 2014.
    13. Emanuele Pugliese & Guido L. Chiarotti & Andrea Zaccaria & Luciano Pietronero, 2015. "Complex economies have a lateral escape from the poverty trap," Papers 1511.08622, arXiv.org.
    14. Andrea Zaccaria & Matthieu Cristelli & Andrea Tacchella & Luciano Pietronero, 2014. "How the Taxonomy of Products Drives the Economic Development of Countries," PLOS ONE, Public Library of Science, vol. 9(12), pages 1-17, December.
    15. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    16. Cristelli, Matthieu & Tacchella, Andrea & Zaccaria, Andrea & Pietronero, Luciano, 2014. "Growth scenarios for sub-Saharan countries in the framework of economic complexity," MPRA Paper 71594, University Library of Munich, Germany.
    17. Matthieu Cristelli & Andrea Gabrielli & Andrea Tacchella & Guido Caldarelli & Luciano Pietronero, 2013. "Measuring the Intangibles: A Metrics for the Economic Complexity of Countries and Products," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-20, August.
    18. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    19. Lall, Sanjaya & Weiss, John & Zhang, Jinkang, 2006. "The "sophistication" of exports: A new trade measure," World Development, Elsevier, vol. 34(2), pages 222-237, February.
    20. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    21. Matthieu Cristelli & Andrea Tacchella & Luciano Pietronero, 2015. "The Heterogeneous Dynamics of Economic Complexity," PLOS ONE, Public Library of Science, vol. 10(2), pages 1-15, February.
    22. Shyam Ranganathan & Viktoria Spaiser & Richard P Mann & David J T Sumpter, 2014. "Bayesian Dynamical Systems Modelling in the Social Sciences," PLOS ONE, Public Library of Science, vol. 9(1), pages 1-9, January.
    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. Freire, Clovis, 2019. "Economic diversification: A model of structural economic dynamics and endogenous technological change," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 13-28.
    2. Andrea Zaccaria & Michela Del Vicario & Walter Quattrociocchi & Antonio Scala & Luciano Pietronero, 2019. "PopRank: Ranking pages’ impact and users’ engagement on Facebook," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-14, January.
    3. Orazio Angelini & Tiziana Di Matteo, 2018. "Complexity of products: the effect of data regularisation," Papers 1808.08249, arXiv.org, revised Oct 2018.
    4. Mika J. Straka & Guido Caldarelli & Tiziano Squartini & Fabio Saracco, 2017. "From Ecology to Finance (and Back?): Recent Advancements in the Analysis of Bipartite Networks," Papers 1710.10143, arXiv.org.

    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. Orazio Angelini & Matthieu Cristelli & Andrea Zaccaria & Luciano Pietronero, 2017. "The complex dynamics of products and its asymptotic properties," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-20, May.
    2. Orazio Angelini & Tiziana Di Matteo, 2018. "Complexity of products: the effect of data regularisation," Papers 1808.08249, arXiv.org, revised Oct 2018.
    3. Viktor Stojkoski & Zoran Utkovski & Ljupco Kocarev, 2016. "The Impact of Services on Economic Complexity: Service Sophistication as Route for Economic Growth," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-29, August.
    4. Hao Liao & Alexandre Vidmer, 2018. "A Comparative Analysis of the Predictive Abilities of Economic Complexity Metrics Using International Trade Network," Complexity, Hindawi, vol. 2018, pages 1-12, February.
    5. Ming-Yang Zhou & Xiao-Yu Li & Wen-Man Xiong & Hao Liao, 2018. "Quantifying the Robustness of Countries’ Competitiveness by Network-Based Methods," Complexity, Hindawi, vol. 2018, pages 1-10, December.
    6. 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.
    7. Poncet, Sandra & Starosta de Waldemar, Felipe, 2013. "Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness," World Development, Elsevier, vol. 51(C), pages 104-118.
    8. Cyrielle Gaglio, 2015. "Measuring Country Competitiveness: A Survey of Exporting-based Indexes," GREDEG Working Papers 2015-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    9. Sandra Poncet & Felipe Starosta, 2013. "Export upgrading and growth in China: the prerequisite of domestic embeddedness," PSE - G-MOND WORKING PAPERS halshs-00960684, HAL.
    10. Saurabh Mishra & Robert Koopman & Giuditta De-Prato & Anand Rao & Israel Osorio-Rodarte & Julie Kim & Nikola Spatafora & Keith Strier & Andrea Zaccaria, 2021. "AI Specialization for Pathways of Economic Diversification," Papers 2103.11042, arXiv.org.
    11. Angelica Sbardella & Andrea Zaccaria & Luciano Pietronero & Pasquale Scaramozzino, 2021. "Behind the Italian Regional Divide: An Economic Fitness and Complexity Perspective," LEM Papers Series 2021/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    12. Ye, Yucheng & Xu, Shuqi & Mariani, Manuel Sebastian & Lü, Linyuan, 2022. "Forecasting countries' gross domestic product from patent data," Chaos, Solitons & Fractals, Elsevier, vol. 160(C).
    13. Bernardo Caldarola & Dario Mazzilli & Lorenzo Napolitano & Aurelio Patelli & Angelica Sbardella, 2023. "Economic complexity and the sustainability transition: A review of data, methods, and literature," Papers 2308.07172, arXiv.org, revised Mar 2024.
    14. Zoran Utkovski & Melanie F Pradier & Viktor Stojkoski & Fernando Perez-Cruz & Ljupco Kocarev, 2018. "Economic complexity unfolded: Interpretable model for the productive structure of economies," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-24, August.
    15. Pintar, Nico & Scherngell, Thomas, 2022. "The complex nature of regional knowledge production: Evidence on European regions," Research Policy, Elsevier, vol. 51(8).
    16. Freire, Clovis, 2019. "Economic diversification: A model of structural economic dynamics and endogenous technological change," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 13-28.
    17. Castañeda, Gonzalo & Pietronero, Luciano & Romero-Padilla, Juan & Zaccaria, Andrea, 2022. "The complex dynamic of growth: Fitness and the different patterns of economic activity in the medium and long terms," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 231-246.
    18. Alje van Dam & Koen Frenken, 2019. "Variety, Complexity and Economic Development," Papers 1903.07997, arXiv.org.
    19. 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.
    20. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "Reprint of The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(8).

    More about this item

    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:arx:papers:1610.00274. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.