Economic complexity, scientific productivity and income inequality in developing economies

Sepehrdoust, Hamid; Tartar, Mohsen; Gholizadeh, Aliakbar

doi:10.1111/ecot.12309

Cited by 14 publications

(13 citation statements)

References 52 publications

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“…(2017), Siddiq (2020), Chu and Hoang (2020), Sepehrdoust et al. (2021)). Thus, the findings of this study, along with the evidence from Bandeira Morais et al.…”

Section: Resultsmentioning

confidence: 98%

“…In contrast, Chu and Hoang (2020) and Sepehrdoust et al. (2021) found an increasing effect of economic complexity on income inequality.…”

mentioning

confidence: 89%

“…(2017) and Siddiq (2020) with Chu and Hoang (2020) and Sepehrdoust et al. (2021)). That is, economic complexity can have increasing effects on income inequality when its level is low, but economic complexity beyond a certain point can help to reduce income inequality.…”

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confidence: 95%

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Economic complexity and income inequality: New evidence of a nonlinear effect

Nguyen

Tran

2023

Social Science Quarterly

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Intro: The literature indicates that economic complexity (the geography of economic activities) is an important explanatory factor in income inequality; however, empirical evidence is still inconclusive. This study addresses this gap by considering the nonlinear influence of economic complexity on income inequality. Methods: Panel quantile regression with fixed effects is applied for a global sample of 121 countries from 1995 to 2018, showing robust findings. Results: Economic complexity appears to have an inverted-U-shaped effect on income inequality. That is, economic complexity likely increases income inequality up to a threshold, beyond which economic complexity helps to reduce income inequality. This inverted-U-shaped effect is found consistently in low-income, lower-middle-income, and upper-middle-income countries, while the opposite effect is found in high-income countries. Evidence of an inverted-U-shaped effect is also documented in most regions except the Middle East & North Africa and South Asia. Interestingly, the study finds that improvements in economic complexity appear to have U-shaped effects on the income share of the bottom earners and inverted-U-shaped effects on the income share of the top earners. Conclusion: These effects explain the inverted-U-shaped effect of economic complexity on income inequality. The results are robust across different quantiles, proxies of income inequality, and various control variables KEYWORDS economic complexity, income inequality, income share, nonlinear effect, panel data JEL CLASSIFICATION D63, O11, O33

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“…(2017), Siddiq (2020), Chu and Hoang (2020), Sepehrdoust et al. (2021)). Thus, the findings of this study, along with the evidence from Bandeira Morais et al.…”

Section: Resultsmentioning

confidence: 98%

“…In contrast, Chu and Hoang (2020) and Sepehrdoust et al. (2021) found an increasing effect of economic complexity on income inequality.…”

mentioning

confidence: 89%

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Economic complexity and income inequality: New evidence of a nonlinear effect

Nguyen

Tran

2023

Social Science Quarterly

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“…The research by Sepehrdoust, et al (2021) examined the effect of macroeconomic variables on income inequality in developing countries from the period 2000 to 2019. They applied the panel-VAR model and found that income inequality decreases with an increase in economic complexity above a certain threshold.…”

Section: Review Of Literaturementioning

confidence: 99%

Income Inequality and Economic Complexity in Africa: Interaction Effect of Governance Quality

Bedemo

2022

Preprint

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This study examines the effect of economic complexity on income inequality through the interaction role of governance factors. The study used data obtained from 24 African countries from 2000 to 2018. The systems GMM method of estimation was employed to predict the effect of variables of interest on income inequality. The findings show that economic complexity has a positive significant effect on income inequality. However, the coefficient of the interaction term is negative and significant implying that while economic complexity increases income inequality, that increase in inequality was significantly offset by the governance factor. The estimated results for disaggregated governance factors suggest similar findings except for political stability. Unlike other dimensions of governance, political stability further deteriorates the effect of economic complexity on income inequality. The overall result entails important policy implications in that for economic complexity to have a weaker deteriorating effect on income inequality, it should be accompanied by an improvement in the governance factors.

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“…In other words, because countries with higher economic complexity are likely to use newer techniques and methods in manufacturing products, we expect emissions of environmental pollutants to decrease in this group of countries. 20 …”

Section: Introductionmentioning

confidence: 99%

Impact of Determinant Macro Economic Variables on Environmental Changes in Iran

Sepehrdoust

Tartar

Mohtashami

2023

Environ�Health�Insights

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Sustainable economic development involves both improving the socio-economic quality of life in the present and improving environmental conditions for future generations. The main objective of the study was to investigate the impact of the determinant macroeconomic variables, including economic complexity, construction, energy consumption, and housing sector expenditures, on environmental changes in Iran over the period 1991 to 2019; using the autoregressive distributed lag (ARDL) model. The results show that at the macro level, an increase in the economic complexity index can reduce pollution in both the short and long term. The effects of further expansion of the housing sector and household energy consumption on pollution are positive and significant in both the short and long run. The error correction model (ECM = 0.65) shows that 65% of the imbalances in each period are corrected in the next period. Based on the obtained results, it is recommended to take serious measures to improve the structure of production and increase the country’s economic complexity index; in other words, to produce goods with higher knowledge and technology and apply policies to improve the level of household energy consumption leading to air pollution reduction. Jel: Q40, Q48, Q50, Q52

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Economic complexity, scientific productivity and income inequality in developing economies

Cited by 14 publications

References 52 publications

Economic complexity and income inequality: New evidence of a nonlinear effect

Economic complexity and income inequality: New evidence of a nonlinear effect

Income Inequality and Economic Complexity in Africa: Interaction Effect of Governance Quality

Impact of Determinant Macro Economic Variables on Environmental Changes in Iran

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