Does Increasing Product Complexity and Diversity Cause Economic Growth in the Long-Run? A GMM Panel VAR Evidence
Bibliographic Data
| ID | 4182329 |
|---|---|
| Authors | Ejike Udeogu (0000-0003-1626-2796, University of East London), Shampa Roy-Mukherjee, Shampa Roy‐Mukherjee (University of East London), Uzochukwu Amakom (0000-0002-7036-4278, University of Nigeria, corresponding author) |
| Year | 2021 |
| Volume | 11 |
| Issue | 3 |
| Publication date | 2021-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/21582440211032918 |
| OpenAlex | W3189652843 |
| Language | EN |
| Citations received | 4 |
| References cited | 63 |
Using aggregate data from 31 Organization for Economic Co-operation and Development (OECD) countries covering periods from 1982 to 2017, this study examines the notion that the level of product complexity is a good determinant of economic growth in the long run. We use the impulse-response function (IRF) computed from the consistent generalized method of moment panel vector autoregressive (GMM pVAR) model to estimate the response of the real output growth to a change in the economic complexity index. The IRF shows that the economic complexity index has a significant impact on economic growth; a 1 standard deviation shock to the economic complexity index at time 0 contributes around 2.34 percentage points to the average rate of growth of output within the first period. The point estimates are positive and significant up to the third period. The cumulative IRF shows that the aggregate impact on economic growth is about 4.4% in the long run. Compared to some widely used innovation proxies such as the gross expenditure on research and development and secondary school enrollment, the economic complexity index performs relatively better in our model in determining economic growth in the long run
Autoregressive model · Econometrics · Economics · Gross domestic product · Impulse response · Macroeconomics · Panel data · Real gross domestic product · Vector autoregression · Computer Science · Economic and Technological Innovation · Economic Growth and Productivity · Energy, Environment, Economic Growth · Mathematics
Econometric Analysis of Panel Data
Time Series Analysis
R&D and Productivity
World-Systems Analysis
New Introduction to Multiple Time Series Analysis
Estimating long-run relationships from dynamic heterogeneous panels
Institutions, Human Capital, and Development
Trade, knowledge spillovers, and growth
The building blocks of economic complexity
Determinants of Economic Growth
International R&D spillovers
Estimation of Panel Vector Autoregression in Stata
Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models
Fitting autoregressive models for prediction
Human Capital and Growth
The Determination of the Order of an Autoregression
Likelihood of a model and information criteria
Testing slope homogeneity in large panels with serial correlation
Time Series Tests of Endogenous Growth Models
From R&D to Innovation and Economic Growth in the EU
Formulation and estimation of dynamic models using panel data
Why Nations Fail
GMM Estimation with persistent panel data
How to do Xtabond2
On the mechanics of economic development
Some Tests of Specification for Panel Data
Another look at the instrumental variable estimation of error-components models
The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics
Testing slope homogeneity in large panels
Initial conditions and moment restrictions in dynamic panel data models
A simple panel unit root test in the presence of cross‐section dependence
Economic Growth in a Cross Section of Countries
Capitalism and Underdevelopment in Latin America
Trade and poverty
Economic Development with Unlimited Supplies of Labour
Technical Change and the Aggregate Production Function
A Model of Growth Through Creative Destruction
Linking Economic Complexity, Institutions, and Income Inequality
Is Specialization Good for Regional Economic Development
Long-Run Policy Analysis and Long-Run Growth
Democracy Does Cause Growth
Increasing Returns and Long-Run Growth
Endogenous Technological Change
Problems of Industrialisation of Eastern and South-Eastern Europe
A Contribution to the Empirics of Economic Growth
A Contribution to the Theory of Economic Growth
The Dynamics of Relief Spending and the Private Urban Labor Market During the New Deal
Endogenous Innovation in the Theory of Growth
| Unique citing works | 4 |
|---|---|
| Citations per year | 1,33 |
| Citation span | 2023 - 2026 (4) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 3 |