Assessing Economic Complexity with Input-Output Based Measures



bundle of two measures that explicitly exclude intra-sectoral flows, negatively correlated
with all the others, but probably the most appropriate for measuring complexity as (sectoral)
interdependence.

According to the majority bundle of (more conventional) measures of connectedness,
large economies seem to be more complex than small ones. The bundle of two measures
excluding (direct) intra-sectoral flows, on the other hand, points to the opposite conclusion,
but this surprising result needs to be confirmed with further theoretical and empirical
research.

REFERENCES

Adami, C. 2002. What is complexity? BioEssays 24: 1085-94.

Amaral, J. F. 1999. Complexity and Information in Economic Systems. In Perspectives on

Complexity in Economics, ed. F. Louça, ISEG-UTL, Lisbon Technical University.

Amaral, J. F., J. Dias and J. Lopes. 2007. Complexity as interdependence in input-output
systems.
Environment and Planning A 39: 1170-82.

Aroche-Reyes, F. 1996. Important coefficients and structural change: a multi-layer approach.

Economic Systems Research 8: 235-46.

Aroche-Reyes, F. 2003. A qualitative input-output method to find basic economic structures.

Papers in Regional Science. 82: 581-90.

Arthur, B. 1999. Complexity and the Economy. Science 284: 107-9.

Basu, R. and T. G. Johnson. 1996. The development of a measure of intersectoral
connectedness by using structural path analysis.
Environment and Planning A 28: 709-30.

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