Economic Complexity and Human Development

Abstract

This book combines the human development approach with innovation economics to explore the effects that structural economic change has on human development. While economic diversification can provide valuable new social choices and capabilities, it also tends to lead to more complex decision processes and changes to the set of capabilities required by people to self-determine their future. Within this process of structural transformation, social networks are crucial for accessing information and social support, but networks can also be a root cause of exclusion and inequality reproduction. This implies the need to encourage innovation and economic diversification beyond production expansion, focusing on the promotion of human agency and social inclusion. This book provides such a modern perspective on development economics, emphasizing the role of social networks, economic diversity and entrepreneurship for social welfare. The author discusses how innovation, social networks, economic dynamics and human development are interlinked, and provides several practical examples of social and micro-entrepreneurship in contexts as diverse as Peruvian rural villages and Brazil's urban areas. The interdisciplinary perspective put forward in this book illustrates theoretical and methodological methods of exploring the complexity of development in a practical and relevant way. It also provides useful information about structural factors which need to be considered by practitioners when designing pro-poor growth policies. Furthermore, the coverage of the core concepts of innovation, networks and development economics, enriched with multiple examples, makes it a valuable resource for scholars and advanced students of modern development economics.

Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries

“…Most literature reviews highlight the purpose of structural change and economic diversification for long term growth [18]. Even so, few researchers asked whether the complexity of products that economies can produce and export predicts the countries' human development and well-being [2,9,19,20].…”

“…The productive structure of a country and its diversification of products is more important for human development than economic growth [19]. More complexity means that more knowledge is available.…”

“…To do so, they focus on a set of significant operations for agents in society, namely their capabilities. They can also focus on the types of jobs that are essential for human development [19]. Therefore, policymakers should develop conditions for innovation and economic diversification.…”

A educação como determinante de complexidade econômica: um estudo para Estados-nação

“…Os próximos tópicos discorrem sobre os procedimentos metodológicos nas diferentes fases para o desenvolvimento desta pesquisa. Justifica-se a seleção dessas variáveis com embasamento em estudos anteriores sobre complexidade econômica e educação (SAVIOTTI E PYKA, 2004;DESPOTIS, 2005;BRETON, 2013;HIDALGO et al, 2007;HIDALGO E HAUSMANN, 2009;HAUSMANN et al, 2014;HARTMANN et al, 2014). O presente trabalho não utilizou dados sobre patentes e gastos em P&D, pois não havia dados suficientes para os países da amostra.…”

“…Hidalgo e Hausmann (2009) comprovaram que a diversificação econômica, em direção a setores intensivos em tecnologia, conduz um país ao crescimento econômico e à elevação da renda no longo prazo. Hartmann (2014) também mostrou que a diversificação econômica é mais importante para o desenvolvimento humano do que o crescimento econômico, pois a complexidade melhora a capacidade das pessoas, ao gerar melhor nível educacional, saúde e indicadores de infraestrutura. Uma economia fortemente avançada tecnologicamente exige uma mão de obra com qualidade técnica e educacional igualmente desenvolvida.…”