Intelligence and economic sophistication

Λαπατίνας, Αθανάσιος; Λίτινα, Αναστασία

doi:10.1007/s00181-018-1511-y

Cited by 64 publications

(48 citation statements)

References 55 publications

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“…In this section we model the hypothesis to be tested building on a model similar to the one developed by Lapatinas and Litina [ 26 ], considering elements derived from standard models of fiscal policy and growth. To study the relationship between fiscal policy and product-sophistication, we first construct the measure of economic sophistication ( EXPY ) using the framework developed by Hausmann et al [ 15 ].…”

Section: Fiscal Policy As a Determinant Of Economic Complexitymentioning

confidence: 99%

Taxation and economic sophistication: Evidence from OECD countries

2019

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Taxation policies can explain the differences in countries’ capacity to produce and export more sophisticated products. We develop a theoretical model considering elements from standard models of economic growth to highlight that a country’s productive structure is implied by the appropriate fiscal policy that is necessary for the development of sophisticated products. We show that economies that rely less on capital relative to labor taxation tend to produce more complex products, while countries that rely more heavily on capital relative to labor taxation produce simple products. These relationships remain robust across alternative econometric specifications. Furthermore, we demonstrate the differential effect of a country’s level of economic development on the nexus between the structure of taxation and economic sophistication. We show that the negative impact of capital taxes on economic sophistication becomes stronger for countries that are more developed.

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Section: Fiscal Policy As a Determinant Of Economic Complexitymentioning

confidence: 99%

Taxation and economic sophistication: Evidence from OECD countries

2019

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“…Sepehrdoust et al (2019) have reported that trade policy liberalization is conducive to greater economic complexity. However, in their analyses that have used trade openness as a control variable, Lapatinas (2019) and Lapatinas and Litina (2019) have not found a signi cant effect of trade openness on economic sophistication.…”

Section: Model Speci Cationmentioning

confidence: 95%

“…[13] Note that we have used the population density variable in replacement with the population size variable (which has been used in the studies on the determinants of export diversi cation), so as to capture more precisely both the geographic potential of countries and the size of labour (e.g., Chu, 2019;Lapatinas and Litina, 2019). We have obtained that results do not change qualitatively and quantitatively.…”

Section: Econometric Approach and Conduct Of The Empirical Exercisementioning

confidence: 99%

“…While there is an increasing number of studies [8] looking at the macroeconomic effects of economic complexity, very few works have considered the determinants of economic complexity (e.g., Chu, 2020;Hausmann and Hidalgo, 2014;Lapatinas, 2019;Lapatinas and Litina, 2019;Sepehrdoust et al, 2019). Thus, by investigating the effect of productive capacities on economic complexity, the present paper adds to these few studies on the determinants of economic complexity.…”

Section: Introductionmentioning

confidence: 99%

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Effect of Productive Capacities on Economic Complexity: Do Aid for Trade flows Matter?

Gnangnon

2021

Preprint

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The COVID-19 health pandemic has exposed the strong vulnerabilities of countries, including developing ones to shocks, and underlined the need for exploring ways to strengthen countries' resilience to future shocks. The current paper uses the dataset made recently available by the United Nations Conference on Trade and Development (UNCTAD) to examine (for the first time) the effect of productive capacities on economic complexity. The analysis further investigates whether Aid for Trade (AfT) flows matter for the influence of productive capacities on economic complexity in recipient-countries. The analysis uses a sample of 126 countries (including both developed and developing countries) over the period 2002-2018, and adopts the two-step system Generalized Methods of Moments (GMM) approach. Results have shown that productive capacities exert a positive effect on economic complexity over the full sample. However, the magnitude of this positive effect varies across different sub-samples, with Least developed countries (LDCs) enjoying the lowest magnitude of this positive effect. Furthermore, total AfT flows are positively associated with economic complexity, with LDCs enjoying a higher positive effect than other countries. Interestingly, total AfT flows exert a higher positive effect on economic complexity in countries that experience low levels of overall productive capacities. The latter finding highlights the need for donor-countries to scale-up AfT flows in favour of countries (such as LDCs) that are characterized by low levels of productive capacities. Finally, the empirical outcomes indicate that productive capacities enhance economic complexity in countries that receive higher amounts of total NonAfT flows.

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“…Furthermore, [56] have recently shown that countries exporting complex products tend to be more inclusive and have lower levels of income inequality than countries exporting simpler products. In addition, [57] find that countries with high intellectual quotient (IQ) populations produce and export more sophisticated/complex products, while [58] shows that the Internet has a positive effect on economic complexity. Adopting the economic complexity methodology, [59] compute a knowledge complexity index with more than two million patent records for US metropolitan areas between 1975-2010.…”

Section: Introductionmentioning

confidence: 99%

The development of nations conditions the disease space

2021

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Using the economic complexity methodology on data for disease prevalence in 195 countries during the period of 1990-2016, we propose two new metrics for quantifying the disease space of countries. With these metrics, we analyze the geography of diseases and empirically investigate the effect of economic development on the health complexity of countries. We show that a higher income per capita increases the complexity of countries’ diseases. We also show that complex diseases tend to be non-ubiquitous diseases that are prevalent in disease-diversified (complex) countries, while non-complex diseases tend to be non-ubiquitous diseases that are prevalent in non-diversified (non-complex) countries. Furthermore, we build a disease-level index that links a disease to the average level of GDP per capita of the countries in which the disease is prevalent. With this index, we highlight the link between economic development and the complexity of diseases and illustrate how increases in income per capita are associated with more complex diseases.

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Intelligence and economic sophistication

Cited by 64 publications

References 55 publications

Taxation and economic sophistication: Evidence from OECD countries

Taxation and economic sophistication: Evidence from OECD countries

Effect of Productive Capacities on Economic Complexity: Do Aid for Trade flows Matter?

The development of nations conditions the disease space

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