A Systematic Literature Review of the Impact of Complexity Theory on Applied Economics

Abstract

A systematic literature review is used to explore the relationship between complexity theory and economics. Broad search terms identify an unmanageable large number of hits. A more focused search strategy follows the PRISMA protocol and screens for Economics branded publications, and with key words for different applications of economics occurring in the abstract. This results in a distinct group of 247 publications. One hundred and twenty-two publications are excluded due to inclusion criteria or a lack of relevance. The remaining 113 are analysed for (1) use of complexity theory concepts, (2) types of methodology and methods, and (3) the applications for macro, meso, and micro issues. The publication with the greatest frequency of resulting articles is Complexity, closely followed by Ecological Economics. The highest annual citation ratio for a single article was 33.88. Complexity theory concepts included: non-linearity, system interactions, adaption, and resilience. Many developed a meso application, rather than solely focusing on macro or micro designs. Agent Based Models (ABMs) were popular, as were general systems models following the practice of the late system theorist, Donella Meadows. Applications were interdisciplinary and diverse, including world system models that linked macroeconomics to climate and sustainability, as contrast with micro and meso models trying to explain the complexity of agent-based behaviour on specific organisations or higher-level processes.

Risk Management Practices and Performance of Road Construction Projects in Kilifi County, Kenya

“…The complexity theory has been used in the fields of strategic management and organizational studies (Minto & Trincanato, 2022). The complexity theory was first developed in the physical sciences influencing the development of scientific concepts and methods for better understanding of unstable and difficult to predict systems such as meteorology (Haynes & Alemna, 2022;Spannring & Hawke, 2022).…”

Configuring the Pattern of Sustainable Tourism Development as Affected by the Construction of a High-Speed Railway System

“…These structures are the sum of many autonomous elements behaving as one. It is believed that the behavior of vast and complex systems cannot be explained by the laws of nature laid the groundwork for what would later become known as complexity theory (Haynes & Alemna, 2022). It seeks to learn how the various parts of a system influence one another and the system as a whole, as well as how these parts evolve over time.…”

“…It seeks to learn how the various parts of a system influence one another and the system as a whole, as well as how these parts evolve over time. Complexity theorists, despite the remarkable similarities between their theories, argue that chaos cannot explain the consistency of self-organizing, complex systems (Haynes & Alemna, 2022).…”

Sustainability: We need to focus on overall system outcomes rather than simplistic targets

“…The network of global threats, and the global socio‐economic‐ecological world that they threaten, can only be dealt with effectively through understanding it as a complex adaptive system ( CAS ). Complex networks of many kinds, from human economic and social networks (Haynes & Alemna, 2022) to nature's ecological networks, global networks and beyond (Fan et al., 2021), have been the subject of CAS studies over the last several decades (Ladyman & Wiesner, 2020; Scheffer, 2008). Our core contribution here is to suggest that recent scientific advances in addressing complexity can serve as a basis for developing fresh approaches to sustainability policies.…”