Application of Economic Complexity Theory in Industrial Policy Making
Subject Areas :
Industrial Management
Anvar
Khosravi
1
(Assistant Professor, Department of Economics, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran)
Heirsh
Soltanpanah
2
(Management Department, Faculty of Humanities, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran)
Received: 2021-09-17
Accepted : 2021-11-16
Published : 2022-01-21
Keywords:
Abstract :
Complex economics provides a powerful and universal tool for understanding key economic and social issues and related challenges. The basic idea is that economic growth and development, environmental sustainability, income inequality and spatial inequality are visible outcomes of latent systemic relationships. The study of economic complexity aims to understand the structure of these interactions and how various socioeconomic processes are formed. This emerging field relies heavily on machine learning and network science techniques. The purpose of this article is to examine the applications of economic complexity to its application in various fields, including industrial policy. The results of this survey show that over the past decade, despite some criticism, techniques for measuring economic complexity and related indicators have evolved into a well-known method for planning industrial policy at the international and national levels (states and cities).
References:
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Petralia, S., Balland, P. A., & Morrison, A. (2017). Climbing the ladder of technological development. Research Policy, 46(5), 956-969.
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Zheng, S., Sun, W., Wu, J., & Kahn, M. E. (2016). Urban agglomeration and local economic growth in China: the role of new industrial parks. USC-INET Research Paper, (16-06).
Wang, Y., & Turkina, E. (2020). Economic complexity, product space network and Quebec's global competitiveness. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 37(3), 334-349.
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Alshamsi, A., Pinheiro, F. L., & Hidalgo, C. A. (2018). Optimal diversification strategies in the networks of related products and of related research areas. Nature communications, 9(1), 1-7.
Bahrami, F., Shahmoradi, B., Noori, J., Turkina, E., & Bahrami, H. (2022). Economic complexity and the dynamics of regional competitiveness a systematic review. Competitiveness Review: An International Business Journal.
Bahar, D., Rosenow, S., Stein, E., & Wagner, R. (2019). Export take-offs and acceleration: Unpacking cross-sector linkages in the evolution of comparative advantage. World Development, 117, 48-60.
Balland, P. A., Jara-Figueroa, C., Petralia, S. G., Steijn, M., Rigby, D. L., & Hidalgo, C. A. (2020). Complex economic activities concentrate in large cities. Nature human behaviour, 4(3), 248-254.
Balland, P. A., & Rigby, D. (2017). The geography of complex knowledge. Economic Geography, 93(1), 1-23.
Balland, P. A., Boschma, R., Crespo, J., & Rigby, D. L. (2019). Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification. Regional studies, 53(9), 1252-1268.
Boschma, R., Balland, P. A., & Kogler, D. F. (2015). Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010. Industrial and corporate change, 24(1), 223-250.
Cristelli, M., Gabrielli, A., Tacchella, A., Caldarelli, G., & Pietronero, L. (2013). Measuring the intangibles: A metrics for the economic complexity of countries and products. PloS one, 8(8), e70726.
Chávez, J. C., Mosqueda, M. T., & Gómez-Zaldívar, M. (2017). Economic complexity and regional growth performance: Evidence from the Mexican Economy. Review of Regional Studies, 47(2), 201-219.
Erkan, B., & Yildirimci, E. (2015). Economic complexity and export competitiveness: The case of Turkey. Procedia-Social and Behavioral Sciences, 195, 524-533.
Farinha, T., Balland, P. A., Morrison, A., & Boschma, R. (2019). What drives the geography of jobs in the US? Unpacking relatedness. Industry and Innovation, 26(9), 988-1022.
Ferraz, D., Moralles, H. F., Campoli, J. S., Oliveira, F. C. R. D., & Rebelatto, D. A. D. N. (2018). Economic complexity and human development: DEA performance measurement in Asia and Latin America. Gestão & Produção, 25, 839-853.
Ferreira-Coimbra, N., & Vaillant, M. (2009). Evolución del espacio de productos exportados:¿ está Uruguay en el lugar equivocado?. Revista de economía, 16(2), 97-146.
Gala, P. (2020). Complexidade econômica: uma nova perspectiva para entender a antiga questão da riqueza das nações. Contraponto Editora.
Guevara, M. R., Hartmann, D., Aristarán, M., Mendoza, M., & Hidalgo, C. A. (2016). The research space: using career paths to predict the evolution of the research output of individuals, institutions, and nations. Scientometrics, 109(3), 1695-1709.
González, A., Ortigoza, E., Llamosas, C., Blanco, G., & Amarilla, R. (2019). Multi-criteria analysis of economic complexity transition in emerging economies: The case of Paraguay. Socio-Economic Planning Sciences, 68, 100617.
Hausmann, R., & Hidalgo, C. A. (2011). The network structure of economic output. Journal of economic growth, 16(4), 309-342.
Hidalgo, C. A. (2021). Economic complexity theory and applications. Nature Reviews Physics, 3(2), 92-113.
Hartmann, D., Guevara, M. R., Jara-Figueroa, C., Aristarán, M., & Hidalgo, C. A. (2017). Linking economic complexity, institutions, and income inequality. World development, 93, 75-93.
Huang, Y., & Zhu, S. (2020). Regional industrial dynamics under the environmental pressures in China. Journal of Cleaner Production, 265, 121917.
Khosravi, A., Daei-Karimzadeh, S., Shahmoradi, B., & Soltanpanah, H. (2020). Optimizing the Export Diversification Strategy of Iran's Chemical Products Using Product Spaces and Economic Complexity Theories. Iranian Journal of Economic Studies, 9(2), 595-621.
Kuznets, S. (2019). Economic growth and income inequality. In The gap between rich and poor(pp. 25-37). Routledge.
Basile, R., & Cicerone, G. (2022). Economic complexity and productivity polarization: Evidence from Italian provinces. German Economic Review.
Lapatinas, A. (2016). Economic complexity and human development: A note. Economics Bulletin, 36(3), 1441-1452.
Neffke, F., Henning, M., & Boschma, R. (2011). How do regions diversify over time? Industry relatedness and the development of new growth paths in regions. Economic geography, 87(3), 237-265.
Neffke, F., & Henning, M. (2013). Skill relatedness and firm diversification. Strategic Management Journal, 34(3), 297-316.
Neffke, F. M., Otto, A., & Hidalgo, C. (2018). The mobility of displaced workers: How the local industry mix affects job search. Journal of Urban Economics, 108, 124-140.
Petralia, S., Balland, P. A., & Morrison, A. (2017). Climbing the ladder of technological development. Research Policy, 46(5), 956-969.
Pérez Hernández, C. C., Salazar Hernández, B. C., & Mendoza Moheno, J. (2019). Diagnóstico de la complejidad económica del estado de Hidalgo: de las capacidades a las oportunidades. Revista mexicana de economía y finanzas, 14(2), 261-277.
Poncet, S. & de Waldemar, F. S. (2013).Economic complexity and growth. Écon. 64, 495-503.
Sezai, A. (2020). Evolution of the product space and a new proposal for Turkeys export incentive system. Turkey: Presidency of Strategy and Budget.
Sørensen, B. B., Estmann, C., Sarmento, E. F., & Rand, J. (2020). Economic complexity and structural transformation: the case of Mozambique(No. 2020/141). WIDER Working Paper.
Ahmed, Z., Can, M., Sinha, A., Ahmad, M., Alvarado, R., & Rjoub, H. (2022). Investigating the role of economic complexity in sustainable development and environmental sustainability. International Journal of Sustainable Development & World Ecology, 1-13.
Zheng, S., Sun, W., Wu, J., & Kahn, M. E. (2016). Urban agglomeration and local economic growth in China: the role of new industrial parks. USC-INET Research Paper, (16-06).
Wang, Y., & Turkina, E. (2020). Economic complexity, product space network and Quebec's global competitiveness. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 37(3), 334-349.
