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Economic Complexity and Inequality at the National and Regional Levels
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Resumo(s)
Recent studies have found evidence of a negative association between economic complexity and inequality at the country level. Moreover, evidence suggests that sophisticated economies tend to outsource products that are less desirable (e.g. in terms of wage and inequality effects), and instead focus on complex products requiring networks of skilled labor and more inclusive institutions. Yet the negative association between economic complexity and inequality on a coarse scale could hide important dynamics at a fine-grained level. Complex economic activities are difficult to develop and tend to concentrate spatially, leading to "winner-take-most" effects that spur regional inequality in countries. Large, complex cities tend to attract both high- and low-skill activities and workers, and are also associated with higher levels of hierarchies, competition, and skill premiums. As a result, the association between complexity and inequality reverses at regional scales; in other words, more complex regions tend to be more unequal. Ideas from polarization theories, institutional changes, and urban scaling literature can help to understand this paradox, while new methods from economic complexity and relatedness can help identify inclusive growth constraints and opportunities.
Descrição
Hartmann, D., & Pinheiro, F. L. (2024). Economic Complexity and Inequality at the National and Regional Levels. In P. Chen, W. Elsner, & A. Pyka (Eds.), Routledge International Handbook of Complexity Economics (pp. 551-566). Taylor & Francis. https://doi.org/10.4324/9781003119128-39 --- We would like to thank César Hidalgo, Mayra Bezerra, Miguel Guevara, Cristian Jara-Figueroa, Pierre-Alex Balland, Mary Kaltenberg, Andreas Pyka, and Diogo Ferraz for the multiple discussions on economic complexity and inequality over the years that contributed to shaping the ideas discussed in this chapter. DH expresses his gratitude for the financial support of CNPq (406943/2021-4 and 315441/2021-6). FLP is thankful for the financial support provided by FCT Portugal under the project UIDB/04152/2020 — Centro de Investigação em Gestão de Informação (MagIC).
Palavras-chave
Economics Finance Business & Industry Global Development Economics, Econometrics and Finance(all) General Business,Management and Accounting General Social Sciences SDG 8 - Decent Work and Economic Growth SDG 11 - Sustainable Cities and Communities
Contexto Educativo
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Editora
Taylor & Francis