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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

To achieve inclusive green growth, countries need to consider a multiplicity of economic, social, and environmental factors. These are often captured by metrics of economic complexity derived from the geography of trade, thus missing key…

General Economics · Economics 2024-07-25 Viktor Stojkoski , Philipp Koch , César A. Hidalgo

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

Efforts to apply economic complexity to identify diversification opportunities often rely on diagrams comparing the relatedness and complexity or products, technologies, or industries. Yer, the use of these diagrams is not based on…

General Economics · Economics 2025-09-25 Viktor Stojkoski , César A. Hidalgo

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

Classic economic science is reaching the limits of its explanatory powers. Complexity science uses an increasingly larger set of different methods to analyze physical, biological, cultural, social, and economic factors, providing a broader…

General Finance · Quantitative Finance 2017-07-11 Klaus Jaffe

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

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

Cities host diverse people and their mixing is the engine of prosperity. In turn, segregation and inequalities are common features of most cities and locations that enable the meeting of people with different socio-economic status are key…

Economic Complexity (EC) methods have gained increasing popularity across fields and disciplines. In particular, the EC toolbox has proved particularly promising in the study of complex and interrelated phenomena, such as the transition…

General Economics · Economics 2024-03-12 Bernardo Caldarola , Dario Mazzilli , Lorenzo Napolitano , Aurelio Patelli , Angelica Sbardella

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

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

We explore the integration of climate action and Sustainable Development Goals (SDGs) in nationally determined contributions (NDCs), revealing persistent synergies and trade-offs across income groups. While high-income countries emphasize…

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

Given the importance of urban sustainability and resilience to the future of our planet, there is a need to better understand the interconnectedness between the social, economic, environmental, and governance outcomes that underline these…

Physics and Society · Physics 2019-04-15 Anand Sahasranaman , Henrik Jeldtoft Jensen

A recent paper by Hausmann and collaborators (1) reaches the important conclusion that Complexity-weighted diversification is the essential element to predict country growth. We like this result because Complexity-weighted diversification…

General Economics · Economics 2019-12-24 Luciano Pietronero , Andrea Gabrielli , Andrea Zaccaria

Debates over the trade-offs between specialization and diversification have long intrigued scholars and policymakers. Specialization can amplify an economy by concentrating on core strengths, while diversification reduces vulnerability by…

Physics and Society · Physics 2025-03-31 Matteo Straccamore , Matteo Bruno , Andrea Tacchella

This study analyses the impacts of economic complexity on environmental performance in BRICS-T countries. Annual data for the period 1999-2021, Durbin-Hausman cointegration test and Augmented Mean Group (AMG) estimator are used in the…

General Economics · Economics 2026-04-16 Emre Akusta

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

Research in Data Envelopment Analysis has created rankings of the ecological efficiency of countries' economies. At the same time, research in economic complexity has provided new methods to depict productive structures and has analyzed how…

General Economics · Economics 2021-08-02 Dominik Hartmann , Diogo Ferraz , Mayra Bezerra , Andreas Pyka , Flavio L. Pinheiro
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