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Автори: Hristovski, Goran, Gockov, Gjorgji, Stojkoski, Viktor
Формат: Preprint
Опубліковано: 2024
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Онлайн доступ:https://arxiv.org/abs/2411.02027
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author Hristovski, Goran
Gockov, Gjorgji
Stojkoski, Viktor
author_facet Hristovski, Goran
Gockov, Gjorgji
Stojkoski, Viktor
contents Recent studies highlight economic complexity's role in mitigating fiscal crises, often measured via an economy's trade structure. Trade, however, is just one facet of an economy's structure and omits critical innovative activities like research. Here, we investigate how a multidimensional approach to economic complexity-including both trade and research structures-relates to fiscal instability. By using data on over 230 national fiscal crises from 1995 to 2021 and hazard duration analysis, we assess how measures of trade and research complexity combine to explain crisis likelihood. We find that the interaction of complexity dimensions significantly reduces crisis probability, whereas individual indexes alone are not robust predictors. This suggests that economies focusing on a single dimension may be more vulnerable, thus highlighting the importance of balanced development across multiple areas. These findings offer valuable insights for policymakers aiming to enhance economic resilience and mitigate fiscal risks.
format Preprint
id arxiv_https___arxiv_org_abs_2411_02027
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Multidimensional Economic Complexity and Fiscal Crises
Hristovski, Goran
Gockov, Gjorgji
Stojkoski, Viktor
General Economics
Economics
Recent studies highlight economic complexity's role in mitigating fiscal crises, often measured via an economy's trade structure. Trade, however, is just one facet of an economy's structure and omits critical innovative activities like research. Here, we investigate how a multidimensional approach to economic complexity-including both trade and research structures-relates to fiscal instability. By using data on over 230 national fiscal crises from 1995 to 2021 and hazard duration analysis, we assess how measures of trade and research complexity combine to explain crisis likelihood. We find that the interaction of complexity dimensions significantly reduces crisis probability, whereas individual indexes alone are not robust predictors. This suggests that economies focusing on a single dimension may be more vulnerable, thus highlighting the importance of balanced development across multiple areas. These findings offer valuable insights for policymakers aiming to enhance economic resilience and mitigate fiscal risks.
title Multidimensional Economic Complexity and Fiscal Crises
topic General Economics
Economics
url https://arxiv.org/abs/2411.02027