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Inequality linked to export complexity

Geoff Riley

21st February 2017

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

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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