Inequality linked to export complexity | tutor2u Economics

Some new and exciting work from Cesar Hidalgo! Research from Hidalgo's team at the MIT media lab finds that a country's income inequality is linked to its export complexity.

According to a new paper appearing in World Development, the more complex a country’s products, the greater equality it enjoys relative to similar-sized countries with similar-sized economies.

According to the researchers’ analysis of economic data from 1996 to 2008, per-capita GDP predicts 36 percent of the variation in Gini coefficients, but product complexity predicts 58 percent.

The key highlight of their research is that economic complexity is a negative and significant predictor of income inequality.

Read more here

The observatory of economic complexity can be found here

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