Economic complexity and human development: a note

Abstract

Existing studies establish a positive effect of the mix of products that a country produces on that country's pattern of economic development and growth. But “there is more to life than income†, hence, does this product mix also predict the people's “quality of life†? The theoretical arguments point out both positive and negative effects, but lack empirical support. In this note, we attempt to address these arguments by examining the impact of economic complexity on countries' social development. Utilizing a dynamic panel data econometric framework, we find no evidence of a causal effect of economic complexity on human development.