Economic complexity at subnational level: A consistency analysis

Several network-based measures have been proposed to assess the economic complexity of countries. These measures have provided important insights into national economic development, and they are now widely applied at the subnational level as well. Here, we show that such applications lead to inconsistent results, in the sense that the estimated complexity of the same product appears to depend on methodological details such as the geographical scale of analysis. Building on these findings, we propose a measure of territorial economic complexity based on an exogenous and extensive computation. We show that these methodological choices yield estimates that are more consistent and more strongly aligned with standard economic indicators, such as GDP per capita and employment.

Source: arXiv:2606.26966v1 - http://arxiv.org/abs/2606.26966v1 PDF: https://arxiv.org/pdf/2606.26966v1 Original Link: http://arxiv.org/abs/2606.26966v1