A Reasoning of Economic Complexity based on Simulated General Equilibrium International Trade Model

نویسندگان

چکیده

Abstract By simulating a multi-country general equilibrium international trade model, we investigate how the Economic Complexity Index (ECI) and Fitness (FI) are related directly to economic fundamentals with clear basis in theory. The model is based on Eaton Kortum (2002) combines factor endowment (Heckscher–Ohlin) technological (Ricardian) reasons for specialization, which further determines complexity across countries. First, find that FI performs better than ECI explaining real-world specialization pattern, where successful countries not only produce complex products due comparative advantage but also tend wide range of possible absolute advantage. Second, highlight predictive power various measures income crucially sensitive other factors shift marginal cost from its efficient level manufacturing sectors. essence such an issue lies assumption revealed (RCA) correctly reflects country's real capability different goods. However, there would exist gap between core idea learning national RCA fact pattern data may necessarily suggest actual presence distortions, latter ubiquitous developing

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ژورنال

عنوان ژورنال: Journal of physics

سال: 2023

ISSN: ['0022-3700', '1747-3721', '0368-3508', '1747-3713']

DOI: https://doi.org/10.1088/2632-072x/ace39e