Economic diversification and human development

Hartmann, Dominik

doi:10.4324/9780203722084-4

Cited by 11 publications

(17 citation statements)

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“…For producing high‐added value, more sophisticated and productive knowledge‐skills are requested. Also, when new products are to be generated, core advantages are coming from these talents and knowledge‐skills (Hartmann & Pyka, 2013). The return to the stock of new talent expands dramatically with the number of talent currently available in a country (Hausmann & Hidalgo, 2010).…”

Section: Introductionmentioning

confidence: 99%

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

Doğan

Driha

Balsalobre‐Lorente

et al. 2020

Sustainable Development

313

104

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Under the growing threats of climate change, innovation and pollution reduction have become driving forces for cleaner economic growth and the environment. This study endeavors to analyze the effect of economic complexity—understood as structural transformation toward more sophisticated and knowledge‐based production, economic progress, renewable energy consumption, and population growth over carbon emissions. Our study employs panel data for a sample of 28 OECD countries covering the period of 1990–2014. The main contribution to the energy economics literature is given by bringing together the concept of environmental degradation and economic complexity controlling via renewable energy consumption and economic and population growth. Based on the extensive empirical analysis (augmented mean group estimator, panel cointegration, and panel regression techniques), we conclude that economic complexity and renewable energy might help in mitigating the environmental degradation problems in OECD countries.

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Section: Introductionmentioning

confidence: 99%

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

Doğan

Driha

Balsalobre‐Lorente

et al. 2020

Sustainable Development

313

104

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“…Even though there seems to be an apparent distinction between the concepts of specialization and diversification, they may not be mutually exclusive. First, in the context of the level of sectoral disaggregation at which the diversification/specialization is measured, a diversified economic structure at a higher degree of aggregation could also have high levels of specialization at lower levels of aggregation, resulting in the coexistence of both mechanisms in an economy at the same time (Hartmann and Pyka, 2013). Second, countries tend to diversify at early stages of development and re-specialize after reaching a threshold level (Imbs and Wacziarg, 2003).…”

Section: Economic Growth Diversification and Human Developmentmentioning

confidence: 99%

“…Their findings illustrate that diversification is beneficial for growth. However, when it comes to human development, it is unclear whether diversification improves or deteriorates human development (Hartmann and Pyka, 2013). The ambiguity of the relationship arises from the fact that diversification strategies may result in obsolescence of existing sectors, which may result in unemployment at least in the short run.…”

Section: Introductionmentioning

confidence: 99%

“…Similarly, in the context of economic diversification, a positive relationship between diversification and economic growth may not necessarily imply the same for human development. Despite the contradiction mentioned above, only few studies attempted to conceptually establish the relationship between the economic diversification and human development (Hartmann and Pyka, 2013).…”

Section: Introductionmentioning

confidence: 99%

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Economic Diversification and Human Development in South Asia

Ali

Memon

2019

Journal of Asian and African Studies

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The paper examines the effect of diversification on social welfare in South Asia using the macroeconomic data for the period 1996–2011, with export diversification as a proxy of economic diversification. In this paper, three types of diversification are assessed (i.e. related, unrelated, and overall variety). While unrelated variety and overall variety show increasing trend over the years, related variety seems to show a non-linear inverted U-shaped curve. Estimation results reveal that all three types of variety have a positive and significant relationship with human development in South Asia, which shows that diversification is beneficial for human development in South Asian countries. It is also found that the existing level of human capital significantly moderates the relationship between related variety and social welfare.

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“…It must be noted that since the seminal contributions of development pioneers-such as Rosenstein-Rodan (1943), Raul Prebisch (1949) and Hans Singer (1950), -many theoretical and empirical contributions have shown that countries need to diversify and sophisticate their productive structure to achieve higher levels of economic development (Hirschman 1958;Furtado 1959;Fajnzylber, 1990;Passinetti, 1981Passinetti, , 1983Saviotti, 1996;Weitzman, 1998;Imbs & Wacziarg, 2003;Saviotti & Pyka, 2004;Frenken & Boschma, 2007;Hidalgo et al, 2007;Saviotti and Frenken, 2008;Felipe, 2009;Hausmann & Hidalgo, 2009;Hartmann & Pyka, 2013;Hausmann et al, 2014;Constantine, 2017;Pinheiro et al, 2018a).…”

Section: Introductionmentioning

confidence: 99%

Identifying Smart Strategies for Economic Diversification and Inclusive Growth in Developing Economies. The Case of Paraguay

Hartmann

Bezerra²,

Pinheiro

2019

SSRN Journal

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A country's productive structure determines its future path of economic diversification, economic growth, and income inequality. In this article, we identify Paraguay's structural constraints and opportunities for economic diversification and inclusive growth. For this purpose, we advance methods from research on economic complexity and the product space to estimate how feasible and desirable are different types of new products and economic diversification strategies for Paraguay. To estimate the feasibility of different diversification opportunities, we measure the revealed comparative advantages and relatedness of 763 SITC products to Paraguay's current product structure. To estimate the desirability of each product, we measure the expected level of income, economic complexity, technology and income inequality associated with these products. Our results indicate that despite Paraguay's strong dependence on primary goods and resource-based manufactures, it has significant opportunities to diversify into more complex, high-income, and inclusive products. These opportunities include manufacturing products related to agricultural activities (such as machines for harvesting or food-processing) as well as chemical products (such as medicaments and vaccines). We present a scoreboard of feasible and desirable product options that helps to discuss different diversification strategies. Paraguay could for instance (1) only focus on the relatedness criteria; (2) further develop the products with intermediate capabilities; (3) promote diversification into related, higher income products; or (4) push towards complex and inclusive industries. Our results imply that only focusing on feasibility may lead developing countries like Paraguay further into an economic development trap, consisting in the focus on simple products and the large distance to high complexity and low inequality products. Instead promoting products that combine minimum standards regarding both feasibility and desirability criteria might be the best strategy for smart diversification and inclusive growth.

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Economic diversification and human development

Cited by 11 publications

References 0 publications

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

Economic Diversification and Human Development in South Asia

Identifying Smart Strategies for Economic Diversification and Inclusive Growth in Developing Economies. The Case of Paraguay

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