Optimizing Economic Complexity

Fuente: arXiv
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Main Authors: Stojkoski, Viktor, Hidalgo, César A.
Format: Preprint
Published: 2025
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author Stojkoski, Viktor
Hidalgo, César A.
author_facet Stojkoski, Viktor
Hidalgo, César A.
contents Efforts to apply economic complexity to identify diversification opportunities often rely on diagrams comparing the relatedness and complexity or products, technologies, or industries. Yer, the use of these diagrams is not based on empirical or theoretidal evidence supporting some notion of optimality. Here, we introduce an optimization-based framework that identifies diversification opportunities by minimizing a cost function capturing the constraints imposed by an economy's pattern of specialization. We show that the resulting portfolios often differ from those implied by relatedness-complexity diagrams, providing a target-oriented optimization layer to the economic complexity toolkit.
format Preprint
id arxiv_https___arxiv_org_abs_2503_04476
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Optimizing Economic Complexity
Stojkoski, Viktor
Hidalgo, César A.
General Economics
Economics
Efforts to apply economic complexity to identify diversification opportunities often rely on diagrams comparing the relatedness and complexity or products, technologies, or industries. Yer, the use of these diagrams is not based on empirical or theoretidal evidence supporting some notion of optimality. Here, we introduce an optimization-based framework that identifies diversification opportunities by minimizing a cost function capturing the constraints imposed by an economy's pattern of specialization. We show that the resulting portfolios often differ from those implied by relatedness-complexity diagrams, providing a target-oriented optimization layer to the economic complexity toolkit.
title Optimizing Economic Complexity
topic General Economics
Economics
url https://arxiv.org/abs/2503.04476