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Economic Complexity and Income Inequality Across Countries and Regions

Fredrich, Johanna Marie LU (2023) EOSK12 20231
Department of Economic History
Abstract
This thesis provides a comprehensive empirical study of the association between economic complexity and income inequality from a multilevel macro perspective. It explores the relationship between economic complexity and income inequality across the countries and regions of the OECD, with a particular focus on regional income inequality in Spain. This relationship is assessed using regression analysis throughout three parts focusing on different income inequality measurements as the dependent variables and the national and regional Economic Complexity Index as the explanatory variables. Part I focuses on the impact of economic complexity on national income inequality. The study finds that economic complexity negatively correlates with... (More)
This thesis provides a comprehensive empirical study of the association between economic complexity and income inequality from a multilevel macro perspective. It explores the relationship between economic complexity and income inequality across the countries and regions of the OECD, with a particular focus on regional income inequality in Spain. This relationship is assessed using regression analysis throughout three parts focusing on different income inequality measurements as the dependent variables and the national and regional Economic Complexity Index as the explanatory variables. Part I focuses on the impact of economic complexity on national income inequality. The study finds that economic complexity negatively correlates with national income inequality across OECD countries. Part II looks at interregional inequalities, evaluating the impact economic complexity has on the level of regional inequalities across the OECD countries. The study cannot find a significant relationship between the variables. However, Part III, which focuses more specifically on the association between regional inequalities and economic complexity across Spanish regions, shows that regions with higher Economic Complexity Index levels also have higher income levels. Therefore, divergence over time because of differing economic complexity levels cannot be ruled out. Additionally, Part III assesses the effects of economic complexity on within-regional inequalities across the Spanish provinces. It finds that economic complexity is correlated with lower income inequality levels across the Spanish provinces, especially in predominantly urban and urban-rural mixed regions. The study also shows that the Economic Complexity Index better predicts income equality than GDP. (Less)
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author
Fredrich, Johanna Marie LU
supervisor
organization
course
EOSK12 20231
year
type
M2 - Bachelor Degree
subject
keywords
Economics, Economic Complexity, Income Inequality, Industrial Policy, OECD, Spain, Regional Economics
language
English
id
9123033
date added to LUP
2023-06-21 12:10:40
date last changed
2023-06-21 12:10:40
@misc{9123033,
  abstract     = {{This thesis provides a comprehensive empirical study of the association between economic complexity and income inequality from a multilevel macro perspective. It explores the relationship between economic complexity and income inequality across the countries and regions of the OECD, with a particular focus on regional income inequality in Spain. This relationship is assessed using regression analysis throughout three parts focusing on different income inequality measurements as the dependent variables and the national and regional Economic Complexity Index as the explanatory variables. Part I focuses on the impact of economic complexity on national income inequality. The study finds that economic complexity negatively correlates with national income inequality across OECD countries. Part II looks at interregional inequalities, evaluating the impact economic complexity has on the level of regional inequalities across the OECD countries. The study cannot find a significant relationship between the variables. However, Part III, which focuses more specifically on the association between regional inequalities and economic complexity across Spanish regions, shows that regions with higher Economic Complexity Index levels also have higher income levels. Therefore, divergence over time because of differing economic complexity levels cannot be ruled out. Additionally, Part III assesses the effects of economic complexity on within-regional inequalities across the Spanish provinces. It finds that economic complexity is correlated with lower income inequality levels across the Spanish provinces, especially in predominantly urban and urban-rural mixed regions. The study also shows that the Economic Complexity Index better predicts income equality than GDP.}},
  author       = {{Fredrich, Johanna Marie}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Economic Complexity and Income Inequality Across Countries and Regions}},
  year         = {{2023}},
}