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How to make an economy more complex? The determinants of complexity in historical perspective

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  • I. L. Lyubimov
  • A. G. Ospanova

Abstract

A higher level of per capita income is associated with a better diversified and more complex export basket. Moreover, a number of results indicate that this relationship might be causal. However, what affects the level of economic complexity itself is yet to be established. In this paper, we focus on a small list of potential determinants of economic complexity. We show that a higher level of complexity is associated with a higher level of human capital accumulation. It is also linked to the initial level of complexity through an inverse U-shaped relationship. These findings survive a number of key robustness checks.

Suggested Citation

  • I. L. Lyubimov & A. G. Ospanova, 2019. "How to make an economy more complex? The determinants of complexity in historical perspective," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 2.
    • Handle: RePEc:nos:voprec:y:2019:id:2142
    DOI: 10.32609/0042-8736-2019-2-36-53
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