Bridging the short-term and long-term dynamics of economic structural change.

ABSTRACT: Economic development hinges on structural change, that is, transformations in what an economy produces. The field of economic complexity has investigated this process through two related but distinct branches: one studying how economies diversify, the other how the complexity of an economy is reflected in its output. However, a formal connection between these approaches, and their relationship to classic accounts of structural transformation (for example, from agriculture to manufacturing), remains unclear. Here we introduce a simple dynamical model that links these perspectives through one core idea: economies diversify preferentially into activities related to those they already do. Studying this model yields three main results: It generates quantities resembling economic complexity metr

SUBMITTER: McNerney J 

PROVIDER: S-EPMC12635145 | biostudies-literature | 2025 Nov

REPOSITORIES: biostudies-literature