The Effect of the Economic Complexity Index on Total Factor Productivity in the Selected Producing Science Countries

Document Type : Original Article

Authors

1 Professor of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

2 M.A Student in Economics, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran

10.29252/jem.2020.100523

Abstract

Increasing production through increased productivity, including important countries ' programs, is expected to achieve continued economic growth. The index of economic complexity using technology and innovation in the manufacturing process through the creation of the generating structure causes an increase in total productivity of the factors. This study estimated the effect of economic complexity on total production factors in 29 selected countries of science using the generalized moments of moments (GMM) during the period of 2009–2017. The results show that indicators of economic complexity, technological readiness and globalization Such as economic globalization have a positive and significant effect on total productivity of production factors. also, inflation index has a negative and significant effect on productivity of all production factors. Therefore, appropriate adaptations to improve the economic complexity, the use of knowledge and technology in its products and to increase the level of international interactions in order to increase the contribution of total productivity growth factors should be recommended.

Keywords


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