The Atlas of Economic Complexity

The Atlas of Economic Complexity

Researchers from the American Harvard and MIT universities (Hidalgo & Hausmann) concluded a study on economic complexity in 2009 and came up with “The Atlas Of Economic Complexity”. The atlas analyzes the foreign trade of 128 countries and sets up an economic growth ranking which is based on the so called Economic Complexity Index (ECI). The basis for the analysis is the quantity and complexity of exported goods and the frequency of exports. Economy is a complex adaptive system and therefore one cannot sum up an economy based on a single number such as Gross Domestic Product (GDP)
Hidalgo and Hausmann propose the concept of ECI not only as a descriptive measure of an economy but also as a predictive tool for economic growth. According to the statistical models they presented the ECI is a more accurate predictor of GDP per capita growth than traditional measures of governance and competitiveness. The networks of industries, the mutual utilization and development of their products as well as increasing their complexity can substantially contribute to social welfare in a country.




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