Product Complexity and Economic Development

Levy Economics Institute, Working Papers No. 616

43 Pages Posted: 17 Sep 2010

See all articles by Arnelyn Abdon

Arnelyn Abdon

Asian Development Bank

Marife Lou Bacate

affiliation not provided to SSRN

Jesus Felipe

Asian Development Bank

Utsav Kumar

Asian Development Bank

Date Written: September 15, 2010

Abstract

We rank 5,107 products and 124 countries according to the Hidalgo and Hausmann (2009) measures of complexity. We find that: (1) the most complex products are in machinery, chemicals, and metals, while the least complex products are raw materials and commodities, wood, textiles, and agricultural products; (2) the most complex economies in the world are Japan, Germany, and Sweden, and the least complex, Cambodia, Papua New Guinea, and Nigeria; (3) the major exporters of the more complex products are the high-income countries, while the major exporters of the less complex products are the low-income countries; and (4) export shares of the more complex products increase with income, while export shares of the less complex products decrease with income. Finally, we relate the measure of product complexity with the concept of Complex Products and Systems, and find a high degree of conformity between them.

Keywords: Capabilities, Development, Economic Complexity, Diversification, Method of Reflections, Product Complexity, Ubiquity

JEL Classification: O10, O14

Suggested Citation

Abdon, Arnelyn May and Bacate, Marife Lou and Felipe, Jesus and Kumar, Utsav, Product Complexity and Economic Development (September 15, 2010). Levy Economics Institute, Working Papers No. 616. Available at SSRN: https://ssrn.com/abstract=1677442 or http://dx.doi.org/10.2139/ssrn.1677442

Arnelyn May Abdon (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Marife Lou Bacate

affiliation not provided to SSRN ( email )

Jesus Felipe

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Utsav Kumar

Asian Development Bank ( email )

6 ADB Avenue
Central and West Asia Department
Mandaluyong City
Philippines

HOME PAGE: http://works.bepress.com/kumarutsav/

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