Exploring the entropy-complexity nexus. Evidence from Italy

Roberto Antonietti and Chiara Burlina

Economia Politica: Journal of Analytical and Institutional Economics, 2023, vol. 40, issue 1, No 10, 257-283

Abstract: Abstract Combining evolutionary economic geography and the recombinant knowledge approach, we test whether the level of entropy in available capabilities affects the level of a region’s economic complexity. Merging different data sources on 103 Italian NUTS-3 regions and 9 years (between 2008 and 2016), our panel regressions show that a higher level of economic complexity in a region is explained by a higher average level of entropy in the region’s capabilities. We also find this effect stronger in the northern and central regions of Italy, and it is due only to entropy in the available technologies, not in capital or skills. Using structural equation models, we show that variety of skills and relative capital endowment are indirectly linked to the level of economic complexity in Italian regions, since they first stimulate a greater technological diversification.

Keywords: Capabilities; Economic complexity; Entropy; Regional development; Variety (search for similar items in EconPapers)
JEL-codes: O33 R11 R12 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40888-022-00265-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:epolit:v:40:y:2023:i:1:d:10.1007_s40888-022-00265-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40888

DOI: 10.1007/s40888-022-00265-9

Access Statistics for this article

Economia Politica: Journal of Analytical and Institutional Economics is currently edited by Alberto Quadrio Curzio

More articles in Economia Politica: Journal of Analytical and Institutional Economics from Springer, Fondazione Edison
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().