The Atlas of Economic Complexity: A Review
Keywords:
capabilities, complexity economics, economic development, international trade, network analysis, product spaceAbstract
This discussion paper provides an exploration of the methodology used by Hausmann et al.’s (2014) Atlas of Economic Complexity. The Atlas provides a novel alternative to mainstream theories of economic growth and international trade. At the heart of the approach is an attempt to quantify the productive knowledge of a nation, which is inferred using a network-based approach to economic analysis. The authors argue that nations which possess greater productive knowledge, represented in a measure termed Economic Complexity, will produce more products and more complex products as part of their export baskets. This represents a significant departure when compared to earlier theories which suggest that more highly developed countries will produce more specialised goods. This discussion paper proceeds as follows: first, an overview of the Atlas’ methodology is provided; then commentary will turn to the strengths and weaknesses of this approach.References
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