Complexity as Interdependence in Input–Output Systems

João Ferreira do Amaral, João Dias and João Lopes ()

Environment and Planning A, 2007, vol. 39, issue 7, 1770-1782

Abstract: In this paper we propose a new index of connectedness for an input–output system which is considered useful for quantifying economic complexity as the level of interdependence between the component parts (sectors) of a national (or regional) economy. This index is empirically applied in a tentative answer to the following questions: Should we expect to find a natural shift towards greater complexity as an economy grows and develops? Is a larger economy necessarily more complex than a smaller one? The interindustry tables of several OECD countries provide the material support for making international and historical comparisons of economic complexity as a level of interrelatedness.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:39:y:2007:i:7:p:1770-1782

DOI: 10.1068/a38214

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