A New and Stable Estimation Method of Country Economic Fitness and Product Complexity
by
Vito D. P. Servedio 1,*
, Paolo Buttà 2, Dario Mazzilli 3, Andrea Tacchella 4 and Luciano Pietronero 3
Vito D. P. Servedio 1,*, Paolo Buttà 2, Dario Mazzilli 3, Andrea Tacchella 4 and Luciano Pietronero 3
1
Complexity Science Hub Vienna, Josefstätter-Strasse 39, A-1080 Vienna, Austria
2
Department of Mathematics, Sapienza University of Rome, P.le Aldo Moro 5, 00185 Roma, Italy
3
Physics Department, Sapienza University of Rome, P.le Aldo Moro 5, 00185 Roma, Italy
4
Institute for Complex Systems, CNR, Via dei Taurini 19, 00185 Rome, Italy
*
Author to whom correspondence should be addressed.
Entropy 2018, 20(10), 783; https://doi.org/10.3390/e20100783
Received: 26 July 2018 / Revised: 3 October 2018 / Accepted: 4 October 2018 / Published: 12 October 2018
(This article belongs to the Special Issue Economic Fitness and Complexity)
We present a new metric estimating fitness of countries and complexity of products by exploiting a non-linear non-homogeneous map applied to the publicly available information on the goods exported by a country. The non homogeneous terms guarantee both convergence and stability. After a suitable rescaling of the relevant quantities, the non homogeneous terms are eventually set to zero so that this new metric is parameter free. This new map almost reproduces the results of the original homogeneous metrics already defined in literature and allows for an approximate analytic solution in case of actual binarized matrices based on the Revealed Comparative Advantage (RCA) indicator. This solution is connected with a new quantity describing the neighborhood of nodes in bipartite graphs, representing in this work the relations between countries and exported products. Moreover, we define the new indicator of country net-efficiency quantifying how a country efficiently invests in capabilities able to generate innovative complex high quality products. Eventually, we demonstrate analytically the local convergence of the algorithm involved.
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Keywords:
economic complexity; non-linear map; bipartite networks
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MDPI and ACS Style
Servedio, V.D.P.; Buttà, P.; Mazzilli, D.; Tacchella, A.; Pietronero, L. A New and Stable Estimation Method of Country Economic Fitness and Product Complexity. Entropy 2018, 20, 783.
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