IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp-2023-9.html
   My bibliography  Save this paper

Inequality and productive structure: New evidence at the world level

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2023-9-inequality-and-productive-structure.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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, April.
    3. 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.
    4. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Goran Hristovski & Gjorgji Gockov & Viktor Stojkoski, 2024. "Multidimensional Economic Complexity and Fiscal Crises," Papers 2411.02027, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "Reprint of The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(8).
    2. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    3. Rui Xue & KeYu Li & FeiFei Wang & Claude Baron, 2024. "Research Progress and Hot-spot Analysis of The Economic Complexity Research Based on CiteSpace," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(1), pages 1-10.
    4. Cesar A. Hidalgo, 2022. "Knowledge is non-fungible," Papers in Evolutionary Economic Geography (PEEG) 2229, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2022.
    5. C'esar A. Hidalgo, 2022. "Knowledge is non-fungible," Papers 2205.02167, arXiv.org.
    6. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(3).
    7. Diogo Ferraz & Fernanda P. S. Falguera & Enzo B. Mariano & Dominik Hartmann, 2021. "Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    8. Olimpia Neagu, 2019. "The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach," Sustainability, MDPI, vol. 11(17), pages 1-27, August.
    9. Vu, Trung V., 2020. "Economic complexity and health outcomes: A global perspective," Social Science & Medicine, Elsevier, vol. 265(C).
    10. Yue, Jiahua & Zhou, Shangsi, 2018. "Democracy’s comparative advantage: Evidence from aggregated trade data, 1962–2010," World Development, Elsevier, vol. 111(C), pages 27-40.
    11. Athanasios Lapatinas & Alexandra Kyriakou & Antonios Garas, 2019. "Taxation and economic sophistication: Evidence from OECD countries," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-21, March.
    12. Ferraz, Diogo & Moralles, Herick Fernando & Campoli, Jéssica & do Nascimento Rebelatto, Daisy Aparecida, 2017. "Economic Complexity and Quality of Life in Latin America and Asia between 2010 and 2014," EconStor Conference Papers 171459, ZBW - Leibniz Information Centre for Economics.
    13. Cem Çağrı Dönmez & Abdulkadir Atalan, 2019. "Developing Statistical Optimization Models for Urban Competitiveness Index: Under the Boundaries of Econophysics Approach," Complexity, Hindawi, vol. 2019, pages 1-11, November.
    14. Gomez-Gonzalez, Jose E. & Uribe, Jorge M. & Valencia, Oscar M., 2023. "Does economic complexity reduce the probability of a fiscal crisis?," World Development, Elsevier, vol. 168(C).
    15. Chu, Lan Khanh & Hoang, Dung Phuong, 2020. "How does economic complexity influence income inequality? New evidence from international data," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 44-57.
    16. Jose E. Gomez-Gonzalez & Jorge M. Uribe & Oscar M. Valencia, 2023. "Sovereign Risk and Economic Complexity: Machine Learning Insights on Causality and Prediction," IREA Working Papers 202315, University of Barcelona, Research Institute of Applied Economics, revised Nov 2023.
    17. Elena Paglialunga & Andrea Coveri & Antonello Zanfei, 2020. "Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems," Working Papers 2003, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2020.
    18. Jian Gao & Tao Zhou, 2017. "Quantifying China's Regional Economic Complexity," Papers 1703.01292, arXiv.org, revised Nov 2017.
    19. Athanasios Lapatinas & Anastasia Litina, 2019. "Intelligence and economic sophistication," Empirical Economics, Springer, vol. 57(5), pages 1731-1750, November.
    20. Felipe, Jesus & Jin, Hongyuan & Mehta, Aashish, 2024. "Education and the evolution of comparative advantage," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 530-543.

    More about this item

    Keywords

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp-2023-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.