Persistence of economic complexity in OECD countries

Solarin Adebola Sakiru, Luis Gil-Alana and Maria Jesus Gonzalez-Blanch

Physica A: Statistical Mechanics and its Applications, 2022, vol. 603, issue C

Abstract: This article investigates the statistical properties of the economic complexity data in a group of 29 OECD countries, testing for their degree of persistence by looking at the order of integration of the series from a fractional integration viewpoint. The results vary substantially depending on the assumptions made on the error term; in particular, mean reversion is only found in the case of Chile if the errors are uncorrelated; however, if autocorrelation is permitted, mean reversion is found in a group of ten countries, namely, Australia, Canada, Colombia, France, Greece, Ireland, Israel, Norway, New Zealand and South Korea. Robust estimation is conducted by means of non-parametric methods and non-linear structures, which are also incorporated in the model. Policy implications are derived at the end of the article.

Keywords: Economic complexity; Long range dependence; Persistence; Fractional integration (search for similar items in EconPapers)
JEL-codes: C22 C32 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:603:y:2022:i:c:s0378437122005568

DOI: 10.1016/j.physa.2022.127860

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