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Economic complexity and structural transformation: the case of Mozambique

Author

Listed:
  • Bjørn Bo Sørensen
  • Christian Estmann
  • Enilde Sarmento
  • John Rand

Abstract

Mozambique is among the world's least complex economies. By systematically accounting for both supply- and demand-side factors, we identify new products and sectors that can help to diversify and upgrade its economy. In a supply-side analysis, we use network methods from the literature on economic complexity to identify a set of target products that are complex, require productive capabilities useful in the export of other products, and are close to Mozambique's existing productive structure.

Suggested Citation

  • Bjørn Bo Sørensen & Christian Estmann & Enilde Sarmento & John Rand, 2020. "Economic complexity and structural transformation: the case of Mozambique," WIDER Working Paper Series wp-2020-141, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-141
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    References listed on IDEAS

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    2. Carol Newman & John Rand & Finn Tarp, 2013. "Industry Switching in Developing Countries," The World Bank Economic Review, World Bank, vol. 27(2), pages 357-388.
    3. Evelyn Dietsche & Ana Maria Esteves, 2018. "What are the prospects for Mozambique to diversify its economy on the back of 'local content'?," WIDER Working Paper Series wp-2018-113, World Institute for Development Economic Research (UNU-WIDER).
    4. Stephan Huber, 2018. "Product Sophistication and Spillovers from Foreign Direct Investment," Contributions to Economics, in: Product Characteristics in International Economics, chapter 0, pages 51-90, Springer.
    5. 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.
    6. Ricardo Hausmann & Bailey Klinger, 2007. "The Structure of the Product Space and the Evolution of Comparative Advantage," CID Working Papers 146, Center for International Development at Harvard University.
    7. Rand, John & Tarp, Finn, 2002. "Business Cycles in Developing Countries: Are They Different?," World Development, Elsevier, vol. 30(12), pages 2071-2088, December.
    8. Pierre-Louis Vezina, 2016. "Resource discoveries and FDI bonanzas," OxCarre Working Papers 177, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    9. Channing Arndt & Henning Tarp Jensen & Finn Tarp, 2000. "Stabilization and structural adjustment in Mozambique: an appraisal," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 299-323, April.
    10. Ricardo Hausmann & Jose Ramon Morales Arilla & Miguel Angel Santos, 2016. "Panama beyond the Canal: Using Technological Proximities to Identify Opportunities for Productive Diversification," CID Working Papers 324, Center for International Development at Harvard University.
    11. Steven Ayres & Clovis Freire, 2012. "In which industries to invest? Aligning market and development incentives in Myanmar," MPDD Working Paper Series WP/12/05, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    12. Hausmann, Ricardo & Hidalgo, Cesar, 2014. "The Atlas of Economic Complexity: Mapping Paths to Prosperity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262525429, April.
    13. Ricardo Hausmann & Patricio Goldstein & Ana Grisanti & Tim O'Brien & Jorge Tapia & Miguel Angel Santos, 2019. "A Roadmap for Investment Promotion and Export Diversification: The Case for Jordan," CID Working Papers 374, Center for International Development at Harvard University.
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    Cited by:

    1. Semanur Soyyiğit & Seda Bayrakdar & Cüneyt Kiliç, . "Effect of Economic Complexity on Unemployment in Terms of Gender: Evidence from BEM Economies," Politická ekonomie, Prague University of Economics and Business, vol. 0.
    2. Ekene ThankGod Emeka & Jonathan E. Ogbuabor & Emmanuel O. Nwosu, 2024. "Effects of public infrastructural development and industrialization on economic complexity in Africa: Emerging insight from panel data analysis," African Development Review, African Development Bank, vol. 36(1), pages 97-110, March.
    3. Semanur Soyyiğit & Seda Bayrakdar & Cüneyt Kiliç, 2023. "Effect of Economic Complexity on Unemployment in Terms of Gender: Evidence from BEM Economies," Politická ekonomie, Prague University of Economics and Business, vol. 2023(3), pages 342-365.
    4. Christian Estmann & Bjørn Bo Sørensen & Benno Ndulu & John Rand, 2022. "Merchandise export diversification strategy for Tanzania: Promoting inclusive growth, economic complexity and structural change," The World Economy, Wiley Blackwell, vol. 45(8), pages 2649-2695, August.
    5. Sena Kimm Gnangnon, 2022. "Effect of economic complexity on services export diversification: do foreign direct investment inflows matter?," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 21(3), pages 413-437, June.

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    Keywords

    Economic complexity; Trade; Exports; Structural transformation; Mozambique;
    All these keywords.

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