Economic Complexity Alignment and Sustainable Development

Fuente: arXiv
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Autori principali: De Wettinck, Quinten, De Bruyne, Karolien, Bam, Wouter, Hidalgo, César A.
Natura: Preprint
Pubblicazione: 2025
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author De Wettinck, Quinten
De Bruyne, Karolien
Bam, Wouter
Hidalgo, César A.
author_facet De Wettinck, Quinten
De Bruyne, Karolien
Bam, Wouter
Hidalgo, César A.
contents Economic complexity has been linked to sustainability outcomes, such as income inequality and greenhouse gas emissions. Yet, it is unclear whether the pursuit of complex and/or related activities naturally aligns with these outcomes, or whether meeting sustainability goals requires policy interventions that pursue unrelated diversification. Here, we exploit multidimensional social and environmental sustainability indicators to quantify the alignment between a country's closest diversification opportunities and sustainability goals. We find that high- and upper-middle-income countries face significantly better environmentally aligned diversification opportunities than poorer economies. This means that, while richer countries enjoy diversification opportunities that align complexity, relatedness and environmental performance, this alignment is weaker for developing economies. These findings underscore the value of evaluating future diversification trajectories through a multidimensional sustainability framework, and emphasise the strategic relevance of unrelated diversification for less developed economies to foster sustainable development.
format Preprint
id arxiv_https___arxiv_org_abs_2509_17919
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Economic Complexity Alignment and Sustainable Development
De Wettinck, Quinten
De Bruyne, Karolien
Bam, Wouter
Hidalgo, César A.
General Economics
Economics
Economic complexity has been linked to sustainability outcomes, such as income inequality and greenhouse gas emissions. Yet, it is unclear whether the pursuit of complex and/or related activities naturally aligns with these outcomes, or whether meeting sustainability goals requires policy interventions that pursue unrelated diversification. Here, we exploit multidimensional social and environmental sustainability indicators to quantify the alignment between a country's closest diversification opportunities and sustainability goals. We find that high- and upper-middle-income countries face significantly better environmentally aligned diversification opportunities than poorer economies. This means that, while richer countries enjoy diversification opportunities that align complexity, relatedness and environmental performance, this alignment is weaker for developing economies. These findings underscore the value of evaluating future diversification trajectories through a multidimensional sustainability framework, and emphasise the strategic relevance of unrelated diversification for less developed economies to foster sustainable development.
title Economic Complexity Alignment and Sustainable Development
topic General Economics
Economics
url https://arxiv.org/abs/2509.17919