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Inequality and productive structure: New evidence at the world level

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  • Verónica Amarante
  • Bibiana Lanzilotta
  • Joaquín Torres

Abstract

This paper investigates the evolution of the productive structure around the world and the role it plays in the difference in inequality levels, using panel data for the period from 1995 to 2018. We approximate a country's productive structure through the Economic Complexity Index. Our results indicate that income inequality at the world level is not linearly related to economic complexity. Instead, our results indicate that, when the levels of complexity of the economy are very low, increases in complexity mainly lead to an increase in economic inequality.

Suggested Citation

  • Verónica Amarante & Bibiana Lanzilotta & Joaquín Torres, 2023. "Inequality and productive structure: New evidence at the world level," WIDER Working Paper Series wp-2023-9, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-9
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2023-9-inequality-and-productive-structure.pdf
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    References listed on IDEAS

    as
    1. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    2. Hartmann, Dominik & Guevara, Miguel R. & Jara-Figueroa, Cristian & Aristarán, Manuel & Hidalgo, César A., 2017. "Linking Economic Complexity, Institutions, and Income Inequality," World Development, Elsevier, vol. 93(C), pages 75-93.
    3. Hausmann, Ricardo & Hidalgo, Cesar, 2014. "The Atlas of Economic Complexity: Mapping Paths to Prosperity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262525429, December.
    4. Fadi Fawaz & Masha Rahnama-Moghadamm, 2019. "Spatial dependence of global income inequality: The role of economic complexity," The International Trade Journal, Taylor & Francis Journals, vol. 33(6), pages 542-554, November.
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    Cited by:

    1. Goran Hristovski & Gjorgji Gockov & Viktor Stojkoski, 2024. "Multidimensional Economic Complexity and Fiscal Crises," Papers 2411.02027, arXiv.org.
    2. Carlos A. Piccioni & Saulo B. Bastos & Daniel O. Cajueiro, 2024. "Measuring Inequality Using Electronic Payment Data," Working Papers Series 608, Central Bank of Brazil, Research Department.

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    More about this item

    Keywords

    Income inequality; Structure of production; Economic complexity; Panel data;
    All these keywords.

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