Economics Development Analysis Journal
Vol 11 No 1 (2022): Economics Development Analysis Journal

Economic Complexity and Sustainable Growth in Developing Countries

Hoeriyah, Lilis (Unknown)
Nuryartono, Nunung (Unknown)
Pasaribu, Syamsul Hidayat (Unknown)



Article Info

Publish Date
07 Feb 2022

Abstract

Most developing countries in this study are middle to low-income countries that have a relatively low economic complexity. This study aims to analyze the effect of the economic complexity on economic growth in 86 developing countries in 2010-2019. The method used is the Generalized Method of Moments (GMM) to capture dynamic panel analysis. The estimation results using the System GMM show that economic complexity has a positive effect on economic growth in developing countries. Increasing economic complexity encourages a structural transformation through high value-added economic sectors' creation to produce more complex products for earning a higher income. Human capital does not have a significant effect on economic growth because developing countries have relatively low-quality workers both in terms of education and health. The human capital development and government spending on the health sector are necessary to accelerate sustainable economic growth.

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Journal Info

Abbrev

edaj

Publisher

Subject

Economics, Econometrics & Finance

Description

The journal scope is related to the research in developing countries such as development studies, poverty adequate, inequality, unemployment studies, behavioral economics, human development problems and many other issues. Economics Development Analysis Journal also publishes an articles related to ...