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Recent studies have found evidence of a negative association between economic complexity and inequality at the country level. Moreover, evidence suggests that sophisticated economies tend to outsource products that are less desirable (e.g.…

General Economics · Economics 2022-06-08 Dominik Hartmann , Flavio L. Pinheiro

Estimating the capabilities, or inputs of production, that drive and constrain the economic development of urban areas has remained a challenging goal. We posit that capabilities are instantiated in the complexity and sophistication of…

Physics and Society · Physics 2021-09-17 Andres Gomez-Lievano , Oscar Patterson-Lomba

By borrowing methods from complex system analysis, in this paper we analyze the features of the complex relationship that links the development and the industrialization of a country to economic inequality. In order to do this, we identify…

General Economics · Economics 2019-09-10 Angelica Sbardella , Emanuele Pugliese , Luciano Pietronero

For Adam Smith, wealth was related to the division of labor. As people and firms specialize in different activities, economic efficiency increases, suggesting that development is associated with an increase in the number of individual…

General Finance · Quantitative Finance 2009-09-23 Cesar A. Hidalgo , Ricardo Hausmann

We analyze the decisive role played by the complexity of economic systems at the onset of the industrialization process of countries over the past 50 years. Our analysis of the input growth dynamics, based on a recently introduced measure…

Economics · Quantitative Finance 2018-01-09 Emanuele Pugliese , Guido L. Chiarotti , Andrea Zaccaria , Luciano Pietronero

Using the economic complexity methodology on data for disease prevalence in 195 countries during the period of 1990-2016, we propose two new metrics for quantifying the relatedness between diseases, or the `disease space' of countries. With…

Physics and Society · Physics 2019-03-26 Antonios Garas , Sophie Guthmuller , Athanasios Lapatinas

Recent studies highlight economic complexity's role in mitigating fiscal crises, often measured via an economy's trade structure. Trade, however, is just one facet of an economy's structure and omits critical innovative activities like…

General Economics · Economics 2024-11-05 Goran Hristovski , Gjorgji Gockov , Viktor Stojkoski

Economic complexity measures aim to quantify the capability content or endowment of industries and territories; however, capabilities are not observable, and therefore cannot be directly used in the computations. We estimate such endowments…

General Economics · Economics 2025-07-09 Antonio Russo , Pasquale Scaramozzino , Andrea Zaccaria

Economic complexity reflects the amount of knowledge that is embedded in the productive structure of an economy. By combining tools from network science and econometrics, a robust and stable relationship between a country's productive…

Economics · Quantitative Finance 2016-11-22 Viktor Stojkoski , Zoran Utkovski , Ljupco Kocarev

A country's mix of products predicts its subsequent pattern of diversification and economic growth. But does this product mix also predict income inequality? Here we combine methods from econometrics, network science, and economic…

Economics · Quantitative Finance 2017-01-31 D. Hartmann , M. R. Guevara , C. Jara-Figueroa , M. Aristaran , C. A. Hidalgo

In economic literature, economic complexity is typically approximated on the basis of an economy's gross export structure. However, in times of ever increasingly integrated global value chains, gross exports may convey an inaccurate image…

General Economics · Economics 2020-12-11 Philipp Koch

Every nation prioritizes the inclusive economic growth and development of all regions. However, we observe that economic activities are clustered in space, which results in a disparity in per-capita income among different regions. A…

General Economics · Economics 2020-09-01 Abhijit Chakraborty , Hiroyasu Inoue , Yoshi Fujiwara

Diversified economies are critical for cities to sustain their growth and development, but they are also costly because diversification often requires expanding a city's capability base. We analyze how cities manage this trade-off by…

Physics and Society · Physics 2025-01-20 Simone Daniotti , Matte Hartog , Frank Neffke

Cities are characterized by the coexistence of general aggregate patterns, along with many local variations. This poses challenges for analyses of urban phenomena, which tend to be either too aggregated or too local, depending on the…

Physics and Society · Physics 2025-09-30 Luís M. A. Bettencourt , Ivanna Rodriguez , Jordan T. Kemp , José Lobo

In recent decades, trade between nations has constituted an important component of global Gross Domestic Product (GDP), with official estimates showing that it likely accounted for a quarter of total global production. While evidence of…

General Economics · Economics 2022-11-24 Mayank Kejriwal , Yuesheng Luo

In recent years economic complexity has grown into an active field of fundamental and applied research. Yet, despite important advances, the policy implications of economic complexity remain unclear or misunderstood. Here I organize the…

General Economics · Economics 2023-08-08 César A. Hidalgo

Research on productive structures has shown that economic complexity conditions economic growth. However, little is known about which type of complexity, e.g., export or industrial complexity, matters more for regional economic growth in a…

Economic transformation -- change in what an economy produces -- is foundational to development and rising standards of living. Our understanding of this process has been propelled recently by two branches of work in the field of economic…

Physics and Society · Physics 2023-03-28 James McNerney , Yang Li , Andres Gomez-Lievano , Frank Neffke

Urbanization plays a crucial role in the economic development of every country. The mutual relationship between the urbanization of any country and its economic productive structure is far from being understood. We analyzed the historical…

Physics and Society · Physics 2021-02-18 Riccardo Di Clemente , Emanuele Strano , Michael Batty

Over the years, the growing availability of extensive datasets about registered patents allowed researchers to better understand technological innovation drivers. In this work, we investigate how the technological contents of patents…

Physics and Society · Physics 2023-02-06 Matteo Straccamore , Matteo Bruno , Bernardo Monechi , Vittorio Loreto
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