Economic complexity and poverty in developing countries

Sena Kimm Gnangnon

Economic Affairs, 2021, vol. 41, issue 3, 416-429

Abstract: This article examines the effect of economic complexity on poverty in developing countries. It shows that greater economic complexity results in lower poverty headcount rates. This is particularly the case for countries that enjoy higher economic growth rates, lower levels of income inequality and lower degrees of economic growth volatility, including volatility due to smaller export demand and financial flows shocks. These findings have important policy implications for those developing countries that are exploring ways and means to recover from the current COVID‐19 pandemic crisis and to prepare for future crises.

Date: 2021
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