Does country stability spur economic complexity? Evidence from panel data

Avom, Désiré; Ndoya, Hermann

doi:10.1080/13504851.2022.2133890

Cited by 10 publications

(10 citation statements)

References 23 publications

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“…financial resources to innovative projects and help countries produce more complex and sophisticated products (Avom & Ndoya, 2022;Vu, 2022). We replicate the estimations in Table 4 using institutional variables to confirm the hypothesis that class memberships are explained by the quality of institutions.…”

Section: T a B L Ementioning

confidence: 66%

“…To sum up, the results in Table 4 suggest that country stability – including political, economic, financial and global stability – can help explain class membership. This finding can be explained by the fact that the lower a country's risk and the higher its stability and the quality of its institutions, the greater the confidence of FI and markets; the financial system can therefore facilitate the grant of more financial resources to innovative projects and help countries produce more complex and sophisticated products (Avom & Ndoya, 2022; Vu, 2022). We replicate the estimations in Table 4 using institutional variables to confirm the hypothesis that class memberships are explained by the quality of institutions.…”

Section: Resultsmentioning

confidence: 99%

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Financial development and economic complexity: The role of country stability

Ndoya,

Ongo Nkoa,

Kemeze

et al. 2023

Econ of Transit and Inst Chang

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The aim of this paper is to examine the relationships between financial development (FD), economic complexity and country stability. To achieve this objective, this paper applies a finite mixture model to a sample of 92 developing countries over the period 1995–2018. The study posits that the effect of FD on economic complexity differs across groups of countries with similar but unobserved characteristics. The study finds that the effect of FD on economic complexity varies across four classes of countries, which differ according to their level of economic, political and financial stability. Furthermore, the study argues that stable countries are more likely to be in class 1, including more performing countries – that is, the group of countries where FD spurs economic complexity. This finding remains consistent even when alternative measures of FD and economic complexity are considered. Hence, efforts by developing countries to undertake sound reforms to reduce economic, political and financial risks could help leverage the benefits of FD in fostering the development of sophisticated and complex economies.

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Section: T a B L Ementioning

confidence: 66%

Section: Resultsmentioning

confidence: 99%

Financial development and economic complexity: The role of country stability

Ndoya,

Ongo Nkoa,

Kemeze

et al. 2023

Econ of Transit and Inst Chang

Self Cite

View full text Add to dashboard Cite

show abstract

“…The literature on ECI determinants suggests a positive relationship between the FDI and ECI. A positive relationship is observed e.g., by Khan et al (2020) and Avom and Ndoya (2022), while Mao and An (2021) find a both positive and negative relationship between investment and ECI. Yalta and Yalta (2021) observe a negative but statistically not significant effect.…”

Section: Resultsmentioning

confidence: 90%

“…That is why we set a dummy variable for 2013. Besides, e.g., Avom and Ndoya (2022) consider the variable of economic stability.…”

Section: Methodsmentioning

confidence: 99%

“…Yalta and Yalta (2021) investigate determinants of economic complexity in the Middle East and North Africa (MENA) countries using the GMM and considering factors such as trade, investments, natural resource rent, GDP per capita, FDI, and average years of schooling (primary, secondary, and tertiary education). Avom and Ndoya (2022) examine the relationship between economic stability and economic complexity using the system GMM and they find the positive effect.…”

Section: Review Of Literaturementioning

confidence: 99%

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Convergence of EU countries according to economic complexity

Maličká

2024

J. Infras. Policy. Dev.

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The economic complexity approach presents a shift from quantitative to qualitative measures of economic performance, while economic complexity refers to the accumulation of know-how. Economic complexity is considered a predictor of economic growth and research evidences a positive relationship between economic complexity and economic growth. In the EU countries, economic convergence is observed. Hence the question of economic complexity convergence arises, too. The paper aims to analyze the convergence of 27 EU countries considering their economic complexity from 1999 to 2021 computing the beta convergence. Using the Barro-type regressions, the econometric estimations focus on four indices of economic complexity—the economic complexity index published by Harvard’s Growth Lab, and economic complexity indices on research, trade, and technology published by the Observatory of Economic Complexity. The absolute beta convergence is observed in the EU except for the economic complexity index referring to trade. When including the dummy referring to the location of EU countries in the West or East of the EU considering their wealth, the conditional beta convergence is observed except for the trade-economic complexity index, again. When altering the condition of location by the GDP per capita and other controls, the conditional beta convergence of economic complexity in the EU is observed when estimating both fixed-effect models and dynamic panel data models based on the system generalized method of moments (GMM) estimator.

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Modelling asymmetric and nonlinear features in the natural resource wealth-economic complexity nexus: empirical insights from Nigeria

Olaniyi,

Odhiambo

2024

Miner Econ

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Contrary to previous research, this study makes a unique contribution to the global discussion by incorporating asymmetric structure and nonlinearity into the analysis of how changes in natural resource wealth affect economic complexity. To achieve this objective, the study uses a nonlinear autoregressive distributed lag (ARDL) and a fully modified ordinary least squares estimator, utilizing data from Nigeria spanning the period 1984–2021. Unlike earlier studies, this study establishes robust evidence of nonlinearity and asymmetry in the sensitivity of economic complexity to changes in natural resource rents in the short and long run. The cumulative increases (positive shock components) in natural resource wealth provide strong stimuli and incentives that promote economic complexity in the short run, while the cumulative decreases (negative shock components) deteriorate economic complexity upgrades. Meanwhile, long-run estimates indicate that both positive and negative shock components are catalysts that impede Nigeria’s manufacturing structures’ ability to improve technological innovation and knowledge-based productive capacity for producing sophisticated and globally competitive exports. These findings imply that the resource curse phenomenon holds true regarding economic complexity in Nigeria in the long run. In conclusion, this study finds that Nigeria’s natural resource endowments breed complacency, racketeering, shrewdness, corrupt practices, and opportunistic behaviour, which impair innovative initiatives that spur economic complexity. This study outlines the policy implications and insights from the findings.

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Does country stability spur economic complexity? Evidence from panel data

Cited by 10 publications

References 23 publications

Financial development and economic complexity: The role of country stability

Financial development and economic complexity: The role of country stability

Convergence of EU countries according to economic complexity

Modelling asymmetric and nonlinear features in the natural resource wealth-economic complexity nexus: empirical insights from Nigeria

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