Tunable resource allocation dynamics for interpreting economic complexity

Zhuo-Ming Ren, Li Zhao, Wen-Li Du, Tong-Feng Weng, Chuang Liu, Yi-Xiu Kong and Yi-Cheng Zhang

Chaos, Solitons & Fractals, 2024, vol. 181, issue C

Abstract: A lot of effort has been devoted to network structural interpretations of the economic complexity which can affect the level of economic growth and the activities of economic entities, although it remains unknown how network dynamical interpretations on which the economic complexity index operates affects its performance. Here, we regard export trade flows as the dynamics of resource allocation, and design a tunable resource allocation (TRA) process for interpreting economic complexity. The TRA could degrade into the classical economic complexity index (ECI) when the tunable parameter equals zero. We apply the TRA dynamics to the perfectly nested triangular matrix and the real country-product bipartite network from the world trade data to interpret economic complexity respectively. The parametric interpretations provide conceptual descriptions of the economic complexity index, shedding new light on a pattern of specialization of resource allocation, and the fluctuation of the economic complexity in countries and products. Moreover, the relationship of economic complexity between countries and products in the framework of TRA reveals that higher-ECI countries usually specialize in higher-ECI products while products not so as to countries, and the correlation strength varies with tunable parameters.

Keywords: Economic complexity; Tunable resource allocation; Bipartite networks (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960077924002121
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:chsofr:v:181:y:2024:i:c:s0960077924002121

DOI: 10.1016/j.chaos.2024.114660

Access Statistics for this article

Chaos, Solitons & Fractals is currently edited by Stefano Boccaletti and Stelios Bekiros

More articles in Chaos, Solitons & Fractals from Elsevier
Bibliographic data for series maintained by Thayer, Thomas R. ().