Measuring the impact of economic complexity on vulnerability and resilience index

Authors

1 Associate Professor, Faculty of Economics, Allameh Tabataba'i University

2 M.A in Economics, Faculty of Economics, Allameh Tabataba'i University

Abstract

In recent years, the reduction of economic vulnerability has become one of the goals of many policymakers, and the identification of effective factors influencing on reducing vulnerability is of great importance. This issue is more important for the Iranian economy, which needs to be more resilient. The question of the present article is that according to the world literature on the index of complexity, does the improvement of the complexity of the economy have an effect on the vulnerability index? After stating the theoretical framework, the article tests the data of 118 countries using the panel data model in the period 1997-2013. The results of the research show that: economic complexity and good governance both have a negative and significant impact on economic vulnerability. The article suggests that to reduce the vulnerability of the economy, the country's policymakers should focus on improving the quality of governance, the complexity of the economy (diversified and knowledge based export) and reducing the share of oil exports.

Keywords

References

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