Abstract

NEPOMUCENO LIMA, Rebeca Maria; FERREIRA GABRIEL, Luciano  and  JAYME JR., Frederico G.. Manufacturing and Economic Complexity: A Multisectorial Empirical Analysis. Inv. Econ [online]. 2022, vol.81, n.322, pp.27-51.  Epub Feb 24, 2023. ISSN 0185-1667.  https://doi.org/10.22201/fe.01851667p.2022.322.82471.

This paper aims to analyze empirically how manufacturing, disaggregated into subsectors by research and development (R&D) intensity, influences the level of economic complexity (ECI). For this, two methods were used: 1) the parametric by Panel Dynamic Ordinary Least Squares (PDOLS) and 2) the non-parametric: a) Data Envelopment Analysis (DEA) and b) Malmquist Decomposition. The econometric results suggest that the allocation of workers in the manufacture of high R&D level has a positive impact on the ECI level of all the countries in the sample analyzed, whereas in the sectors of lower R&D there is a greater impact in emerging countries, but lower effects (or negative) on advanced countries. In general, the non-parametric results present the relationship between efficiency in manufacturing subsectors and economic complexity as an inverted U shape. Special attention is given to Brazil, which manufacturing catching up was underperformed in explaining total factor productivity in the analyzed period.

Keywords : Manufacturing; economic complexity; Data Envelopment Analysis (DEA); panel data; O10; O32; O33.

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