How "complex" is growth? A panel analysis in 27 European area countries

Author/s Angelo Castaldo, Andrea Billi, Gaia Orzi
Publishing Year 2020 Issue 2020/1
Language Italian Pages 19 P. 115-133 File size 0 KB
DOI 10.3280/cgrds1-2020oa10104
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This paper aims to build a bridge between the economic complexity and endogenous growth stream of works. Traditional growth empirical and theoretical literature tend to underestimate the relevance of the effects exerted by the systematic interactions among the growth factors. In this vein, this work adapts the Mankiw et al. (1992) model in order to consider, in the technological component of the growth function, a measure of the country’s system economic complexity. The empirical analysis refers to a panel of 27 European area countries for 12 years (2007-2018). Implementing both traditional panel estimation approach (fixed and random effects model) and dynamic generalized method of moments (system-GMM) approach, the findings obtained reveal that the economic complexity index (ECI) represents a primary determinant of actual growth path.

Keywords: Growth theory, Complexity economics; Economic complexity index; GMM; semi-parametric fixed effects model.

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Angelo Castaldo, Andrea Billi, Gaia Orzi, Quanto è "complessa" la crescita? Un’analisi panel in 27 paesi Europei in "CORPORATE GOVERNANCE AND RESEARCH & DEVELOPMENT STUDIES" 1/2020, pp 115-133, DOI: 10.3280/cgrds1-2020oa10104