Does Institutional Quality and Human Capital Make a Difference For Economic Complexity?
Keywords:
Economic Complexity, Institutions, Human Capital, Economic Growth, E7 CountriesAbstract
Economic complexity reflects a country’s production capabilities and plays an important role in economic growth as an indicator of competitiveness. Countries with high levels of complexity also have a high potential to produce and export high-value-added products. Complexity reveals information about a country’s human capital, technology and institutions and is also strongly related to economic performance. The existence of quality institutions and high levels of human capital act as catalysts for increasing the level of economic complexity. In the study, a determination was made on the economic complexity levels of the E7 Countries consisting of China, Brazil, Indonesia, India, Mexico, Russia and Türkiye, which are called emerging economies, and the impact of institutions and human capital on economic complexity was analyzed. It has been determined that Brazil has a high institutional quality and a high level of human capital compared to other group member countries, and its level of economic turmoil is also high. In contrast, China and Mexico were found to have high levels of economic complexity, contrary to theory, despite lower institutional quality and lower levels of human capital within the group.
References
Bekun, Festus Victor, Parlak Akwasi Gyamfi, Stephen Taiwo Onifade and Mary Oluwatoyin Agboola, “Beyond The Environmental Kuznets Curve in E7 Economies: Accounting for the Combined Impacts of Institutional Quality and Renewables”, Journal of Cleaner Production 314, (2021), 127924: 1-10.
Berg, H. Van den Economic Growth and Development. Singapore: World Scientific Publishing, 2nd ed., 2012.
Biçen, Ömer Faruk “Türkiye’de Kurumsal Faktörler ve Büyüme: 2010-2020 Dönemi Büyüme Sürecine Yönelik Bir Değerlendirme”, Journal of Academic Opinion 1, sayı 1, (2021): 7-14.
Çoban, Mustafa Necati. “Ekonomik Kompleksite ve İnsani Gelişmişlik İlişkisi: E7 Ülkeleri İçin Bir Analiz”, Ahi Evran Üniversitesi Sosyal Bilimler Enstitüsü Dergisi 6, sayı 2, (2020): 467-479.
Dias, Joilson, Edinaldo Tebaldib. “Institutions, Human Capital and Growth: The Institutional Mechanism”, Structural Change and Economic Dynamics 23, (2021): 300-312.
Emirkadı, Ömer. “Ekonomik Kalkınma ve Beşeri Sermaye İlişkisi: Türkiye Ekonomisi Üzerine Teorik Bir Değerlendirme”, Yüzüncü Yıl Üniversitesi Sosyal Bilimler Enstitüsü Dergisi 46, (2019): 97-116.
Erkan, Birol, Elif Yildirimci. “Economic Complexity and Export Competitiveness: The Case of Turkey”, Procedia - Social and Behavioral Sciences 195, (2015): 524-533.
Glaeser, Edward L., Rafael La Porta, Florencio Lopez-De-Silanes and Andrei Shleifer, “Do Institutions Cause Growth?”, J Econ Growth 9, no. 3, (2004): 271-303.
Growth Lab. “Country & Product Complexity Rankings.” Erişim tarihi: 25.04.2024. https://atlas.cid.harvard.edu/rankings.
Hartmann, Dominik, Miguel Guevara, Cristian Jara-Figueroa, Manuel Aristarán and César A. Hidalgo, “Linking Economic Complexity, Institutions and Income Inequality”, World Development 93, (2016): 75-93.
Hidalgo, César A., Ricardo Hausmann.“The Building Blocks of Economic Complexity”, Proc Natl Acad Sci 106, no. 26, (2009): 10570-10575.
Hussain, Muzzammil, Eyup Doğan. “The Role of Institutional Quality and Environment-Related Technologies in Environmental Degradation for BRICS”, Journal of Cleaner Production 304, (2021): 1-10.
Lee, Kang‑Kook, Trung V. Vu. “Economic Complexity, Human Capital And Income Inequality: A Cross‑Country Analysis”, The Japanese Economic Review 71, (2020): 695-718.
Muhlis Can, Giray Gözgör. “The Impact of Economic Complexity on Carbon Emissions: Evidence from France”, Environ. Sci. Pollut. Res. 24, (2017): 16364-16370.
Neagu, Olimpia. “Economic Complexity and Ecological Footprint: Evidence from the Most Complex Economies in the World”, Sustainability 12, no. 21, (2020): 9031-9048.
North, Douglass C. Kurumlar Kurumsal Değişim ve Ekonomik Performans, çev. Gül Çağalı Güven. İstanbul: Sabancı Üniversitesi Yayınları, 2013.
Özyakışır, Deniz. “Beşeri Sermayenin Ekonomik Kalkınma Sürecindeki Rolü: Teorik Bir Değerlendirme”, Girişimcilik ve Kalkınma Dergisi 6, sayı 1, (2011): 46-71.
Rivera, Bryan, Marcelo Leon, Gino Cornejo and Hector Florez. “Analysis of the Effect of Human Capital, Institutionality and Globalization on Economic Complexity: Comparison Between Latin America and Countries with Greater Economic Diversification”, Economies 11, no. 8, (2023): 1-16.
Shahzad, Umer, Mara Madaleno, Vishal Dagar, Sudeshna Ghosh and Buhari Doğan. “Exploring The Role of Export Product Quality and Economic Complexity for Economic Progress of Developed Economies: Does İnstitutional Quality Matter?”, Structural Change and Economic Dynamics 62, (2022): 40-51.
UNDP. “Human Development Index”. Erişim tarihi: 12.05.2024.https://hdr.undp.org/data-center/human-development-index#/indicies/HDI.
Vu, Turung V. “Does Institutional Quality Foster Economic Complexity? The Fundamental Drivers Of Productive Capabilities”, Empirical Economics 63, (2022): 1571-1604.
World Bank. “World Development Indicators”, Erişim tarihi: 23.04.2024. https://databank.worldbank.org/source/world-development-indicators#.
World Bank. “Worldwide Governance Indicators”. Erişim tarihi: 25.04.2024. http://info.worldbank.org/governance/wgi/
Zheng, Fengjiao, Xuemei Zhou, Birjees Rahat and Ghulame Rubbaniy. “Carbon Neutrality Target for Leading Exporting Countries: On The Role of Economic Complexity Index and Renewable Energy Electricity”, Journal of Environmental Management 229, (2021): 1-9.
Zhu, Shujin, Renyu Li, “Economic Complexity, Human Capital and Economic Growth: Empirical Research Based On Cross-Country Panel Data”, Applied Economics 49, no.38, (2016): 1-14.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 US Journal
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
https://creativecommons.org/licenses/by-nc-sa/4.0/legalcode.en
