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What is the purpose of economic complexity index?

What is the purpose of economic complexity index?

The Economic Complexity Index, or ECI, is a measure of an economy’s capacity which can be inferred from data connecting locations to the activities that are present in them.

How is economic complexity calculated?

It is calculated as the mathematical limit of a measure based on how many products a country exports and how many exporters each product has. ‘ Departing from these definitions, the two sets of indexes PCI and ECI are computed by the Observatory of Economic Complexity for each product, country and year.

What is the economic complexity ranking system?

The Economic Complexity Index (ECI) is a holistic measure of the productive capabilities of large economic systems, usually cities, regions, or countries.

What does ECI ranking mean?

Economic Complexity Index
Harvard Growth Lab’s Country Rankings assess the current state of a country’s productive knowledge, through the Economic Complexity Index (ECI). Countries improve their ECI by increasing the number and complexity of the products they successfully export.

What does a low economic complexity index mean?

Loosely speaking, the least complex countries, at the bottom of the ECI rank, are those that export very few different types of products (i.e. have export baskets that are not diversified) and those products that they do export are produced in many other countries (i.e. export baskets that load heavily on just a few …

Whats an OECD country?

The Organisation for Economic Co-operation and Development, abbreviated as OECD and based in Paris (FR), is an international organisation of 38 countries committed to democracy and the market economy.

What does a low economic complexity mean?

Is GDP a per capita?

Gross Domestic Product (GDP) per capita shows a country’s GDP divided by its total population. The table below lists countries in the world ranked by GDP at Purchasing Power Parity (PPP) per capita, along with the Nominal GDP per capita.

Who has the best economic system?

#1 Singapore Read More About SingaporeSingapore’s economic freedom score is 84.4, making its economy the freest in the 2022 Index.

Which country has the most complex economy?

These are the most complex economies around the globe. Japan is the world’s most complex economy. In the past, the trade between nations was a much simpler matter to grasp. Commodities and a few finished goods moved between a handful of countries in a straightforward way.

What is the most complex country?

Country rankings

Rank Country Economic complexity index (2018)
1 Japan 2.43
2 Switzerland 2.17
3 South Korea 2.11
4 Germany 2.09

Who has the most diverse economy in the world?

Japan is home to the world’s most diversified economies. Based on the economic complexity index, Japan, Switzerland, and Germany have the most diverse economies in the world….Countries With the Most Diverse Economies.

Rank ´╗┐Country Economy Complexity Score
1 Japan 2.229
2 Switzerland 2.054
3 Germany 1.956
4 South Korea 1.799