A sub-national economic complexity analysis of Australia’s states and territories

Reynolds, Christian; Agrawal, Manju; Lee, Ivan; Zhan, Chen; Li, Jiuyong; Taylor, Phillip; Mares, Tim; Morison, Julian; Angelakis, Nicholas; Roos, Göran

doi:10.1080/00343404.2017.1283012

Cited by 43 publications

(31 citation statements)

References 20 publications

(21 reference statements)

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“…Economic complexity has traditionally been studied considering the structure of the bipartite world trade network [3,4,[6][7][8][9][10][11]. Recently, economic complexity has been studied at the regional level for China [12], Brazil [10], Mexico [13], Italy [14], Spain [15], Australia [16], the US and the UK [5]. Most of these regional complexity studies are done at very coarse grain level.…”

Section: Introductionmentioning

confidence: 99%

Economic complexity of prefectures in Japan

2020

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Every nation prioritizes the inclusive economic growth and development of all regions. However, we observe that economic activities are clustered in space, which results in a disparity in per-capita income among different regions. A complexity-based method was proposed by Hidalgo and Hausmann [PNAS 106, 10570-10575 (2009)] to explain the large gaps in percapita income across countries. Although there have been extensive studies on countries' economic complexity using international export data, studies on economic complexity at the regional level are relatively less studied. Here, we study the industrial sector complexity of prefectures in Japan based on the basic information of more than one million firms. We aggregate the data as a bipartite network of prefectures and industrial sectors. We decompose the bipartite network as a prefecture-prefecture network and sector-sector network, which reveals the relationships among them. Similarities among the prefectures and among the sectors are measured using a metric. From these similarity matrices, we cluster the prefectures and sectors using the minimal spanning tree technique. The computed economic complexity index from the structure of the bipartite network shows a high correlation with macroeconomic indicators, such as per-capita gross prefectural product and prefectural income per person. We argue that this index reflects the present economic performance and hidden potential of the prefectures for future growth.

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Section: Introductionmentioning

confidence: 99%

Economic complexity of prefectures in Japan

2020

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“…It is precisely at the state level that a large set of industrial policies is commonly designed and implemented in reality. Therefore, our paper is framed in the very recent, but growing, literature of the subnational analyses of complexity and economic development [ 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 ].…”

Section: Introductionmentioning

confidence: 99%

Subnational Analysis of Economic Fitness and Income Dynamic: The Case of Mexican States

Castañeda

Romero-Padilla

2018

Entropy

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In recent years, analytical tools of network theory have provided strong empirical support to the well-known hypothesis that regions develop through the local learning of capabilities (tacit productive knowledge). In this paper, we compare two indexes of competitiveness (or accumulated capabilities) for a subnational database of 32 Mexican states in the period 2004–2014. We find that Endogenous Fitness (i.e., region fitness and product complexity are derived jointly using only a Mexican exports database) has a better performance than Exogenous Fitness (i.e., product complexity comes from a world exports database and fitness is the sum of the complexity scores for the region’s competitive products). The performance criterion is established with the indicator’s capacity to meet a requirement of growth predictability: the existence of at least one laminar (ordered) regime in the fitness–income plane. In the Mexican data, Endogenous Fitness is a reliable predictor of per capita GDP in two distinct areas of the plane: one of continuous progress and opportunities, and another of stagnation and deteriorating fitness. The predictive capacity of this indicator becomes clear only when the metrics’ calculations are filtered by removing raw petroleum or oil-dependent states, while such capacity is robust to the inclusion of tourism—another important industry of the Mexican economy.

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“…Economic complexity analysis has been developed as a method to identify current export capability as well as predict future economic growth (Hidalgo and Hausmann, 2009;Hausmann and Hidalgo, 2013;Hausmann, Hidalgo, Stock and Yildirim, 2014). EC analysis has been used at a global level (Hausmann, Hidalgo, Bustos, Coscia, Simoes and Yildirim, 2014;Felipe et al, 2012), the national level (Hausmann and Hidalgo, 2013), the sub-national state level (Reynolds et al, 2017), and at the city level (Nepelski and De Prato, 2015).…”

Section: Economic Complexitymentioning

confidence: 99%

“…institutions, institutional structure and stability, policy landscape and the predictability of this landscape, available information, etc. Due to the difficulty in capturing these two forms of capital they are not considered in the economic complexity modelling and hence economic complexity can only explain about 70 per cent of the prosperity development (or economic transformation) in an economy, using r 2 as a measure (Reynolds et al, 2017).…”

Section: Economic Complexitymentioning

confidence: 99%

Knowledge management, intellectual capital, structural holes, economic complexity and national prosperity

Roos¹

2017

JIC

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Purpose-The purpose of this paper is to tie together the insights from the body of research relating to economic complexity theory, structural holes, non-price based competition, and knowledge management. The insights relating to generating national prosperity are synthesised through an intellectual capital lens. Design/methodology/approach-The paper uses literature review combined with insights from an Australian project on state-based economic complexity. Findings-The connectivist and autopoietic epistemological paradigms are found to be most aligned with the need to manage transformation between organisational and human resources that will achieve causal ambiguity and hence inimitability. This inimitability forms the basis for achieving non-price based competition and if there is a rich network of economic agents that, both individually and collectively through collaboration, have these characteristics a large share of the economy can operate on the basis of non-priced based competition. If all these agents have an export focus the economic complexity of the economy will be high, and likely increasing, which will enable both the creation and the appropriation of large amounts of value and hence result in increasing national prosperity. Research limitations/implications-Findings are only relevant for OECD countries given the origins of the data used. Practical implications-Managerial implications are outlined as are major implications for public policy. Originality/value-This is the first time that these concepts are linked.

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A sub-national economic complexity analysis of Australia’s states and territories

Abstract: This is a repository copy of A sub-national economic complexity analysis of Australia's states and territories.

Cited by 43 publications

References 20 publications

Economic complexity of prefectures in Japan

Economic complexity of prefectures in Japan

Subnational Analysis of Economic Fitness and Income Dynamic: The Case of Mexican States

Knowledge management, intellectual capital, structural holes, economic complexity and national prosperity

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