Browsing by Subject "Economic complexity"

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Comparing cars with apples? Identifying the appropriate benchmark countries for relative ecological pollution rankings and international learning
(2021) Hartmann, Dominik; Ferraz, Diogo; Bezerra, Mayra; Pyka, Andreas; Pinheiro, Flávio L.
One of the most difficult tasks that economies face is how to generate economic growth without causing environmental damage. Research in economic complexity has provided new methods to reveal structural constraints and opportunities for green economic diversification and sophistication, as well as the effects of economic complexity on environmental pollution indicators. However, no research so far has compared the ecological efficiency of countries with similar productive structures and levels of economic complexity, and used this information to identify the best learning partners. This matters, because there are substantial differences in the environmental damage caused by the same product in different countries, and green diversification needs to be complemented by substantial efficiency improvements of existing products. In this article, we use data on 774 different types of exports, CO2 emissions, and the ecological footprint of 99 countries to create first a relative ecological pollution ranking (REPR). Then, we use methods from network science to reveal a benchmark network of the best learning partners based on country pairs with a large extent of export similarity, yet significant differences in pollution values. This is important because it helps to reveal adequate benchmark countries for efficiency improvements and sustainable production, considering that countries may specialize in substantially different types of economic activities. Finally, the article i) illustrates large efficiency improvements within current global output levels, ii) helps to identify countries that can best learn from each other, and iii) improves the information base in international negotiations for the sake of a cleaner global production system.
International trade, development traps, and the core-periphery structure of income inequality
(2019) Pinheiro, Flávio L.; Lodolo, Beatrice; Bezerra, Mayra; Hartmann, Dominik
Research on economic complexity has shown that a country’s type of exports conditions its future path of economic diversification and economic growth. Yet little emphasis has been put on the inequality associated with the types of products traded between countries and different regions of the world. Here we analyze the income inequality associated with the imports and exports of 116 countries in the period from 1970 to 2010. Our analysis shows that methods from network science and visual complexity research can help to reevaluate old theories in economics, such as coreperiphery structures in international trade or structural development traps. Our results illustrate that the core-periphery structure of global trade affects not only the income inequality between countries, but also the income inequality within countries. Moreover, they reveal the structural constraints that developing and emerging economies face in promoting inclusive growth and benchmark their productive transformations with cases of successful catching up and developed economies. The results show that countries, such as South Korea or Germany, have benefited from outsourcing high inequality products. In contrast, some middle-income countries, such as Brazil or South Africa, face structural development constraints consisting of a large average distance of their export products to low inequality products and a “gravitational force” towards high inequality products. Finally, developing economies, such as Nicaragua or Sri Lanka face a double development trap for inclusive growth, as their economies depend on both a large share of high inequality exports and imports.