Exploring the Interaction of Population, Globalization, and Institutional Factors for Achieving Economic Complexity in D8 Countries

Abolfazl Shahabadi () and Roghayeh Pouran ()
Additional contact information
Abolfazl Shahabadi: Alzahra University
Roghayeh Pouran: Alzahra University

Journal of the Knowledge Economy, 2024, vol. 15, issue 2, No 120, 8077-8096

Abstract: Abstract Population plays a direct role in the production and demand of goods and services. Moreover, through indirect channels, the skilled and educated population, represented as the human capital as well as the process of research and development, innovation, and foreign direct investment, it can generate some complex and diverse products and, thus, would lead to creating the economic complexity of countries. Ultimately, all of these mechanisms can be employed under the appropriate institutional environment. Thus, the goal of this study is to explore the interaction of population, globalization, and institutional factors in achieving economic complexity. For this purpose, the population is divided into two categories: a population that is ready to work and produce, active population (between 15 and 64 years), and others (less than 14 years and over 65). The results of estimating the panel model by fully modified OLS (FMOLS) method during 1995–2019 show that the inactive population has a positive effect on the economic complexity in D8 countries. This means that this category of population is considered as a remarkable market for complex products. Furthermore, the interaction of active population, globalization, and institutional variables on the economic complexity of the studied countries is positive. This paper suggests that if the potential capacities of globalization and targeted guidance of the productive population are used, in the shadow of improving the institutional quality, we can see the positive effect of the productive population on the economic complexity of countries.

Keywords: Economic complexity; Population; Institutional quality; Globalization (search for similar items in EconPapers)
JEL-codes: F61 J11 J24 L14 O43 Q11 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-023-01223-x 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:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01223-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-023-01223-x

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().