Economic Complexity and its effects

This post is about economic complexity and view for Turkey.

FINDINGS

Doğukan CANBAZLAR

1/26/20242 min read

a large crane that is standing in the sky

Prosperity's Secret Weapon: Economic Complexity

Imagine a vibrant network of skills, not goods, where each person contributes, weaving collective know-how. That's economic complexity, the hidden driver of wealth.

Beyond Brilliance: The Power of Collective Know-How

Complex products require diverse, complementary skills. The more varied skills a society has, the richer its diversity. Conversely, limited skills reflect low ubiquity - things many can make.

Mapping the Knowledge Network: The ECI

The ECI measures a country's knowledge network, considering both diversity and ubiquity. It's like a GPS for economies, revealing its "knowledge landscape."

Complexity = Prosperity: The Golden Equation

High ECI = high GDP per capita. More importantly, the gap between a country's actual and "complexity-expected" GDP predicts future growth. Economic complexity is a compass for unlocking a nation's true potential.

The Quest for Growth: Nurturing Collective Know-How

Understanding economic complexity leads to policies that unleash a society's full knowledge power.

Want to dig deeper? Links below used for this paragraphs.

This chart show GDP change and export complexity change. Result shows that there is no strong relationship between Complexity increase and GDP increase. Adjusted R Square -0,012399748 The hypothesis is that if a city export cannot be exported by other cities means that that particular ISIC sector products can easily be exported by other cities. Should means City has more muscles and should make relatively more lift.

Used links for images:

Export complexity 2013 and 2021

This Map shows Export Complexity of year 2021. In other words, red color means city exports are might less complex and easy to produce in other cities. On the other hand, blueish color represents opposite. Generally exported products can be produce and exportable form other cities. ISTANBUL, ANKARA, IZMIR, HATAY, MERSIN on the average export more complex products. Export classification is based on ISIC sectors.

This Map shows Export Complexity of year 2013. In other words, red color means city exports are might less complex and easy to produce in other cities. On the other hand, blueish color represents opposite. Generally exported products can be produce and exportable form other cities. ISTANBUL, TUNCELI, IZMIR, ANKARA, MERSIN, ANTALYA, HATAY on the average export more complex products. Export classification is based on ISIC sectors.

Change in Average complexity versus Change in GDP

Economic complexity versus export value