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

Economic Complexity and Sustainable Growth in Developing Countries

Lilis Hoeriyah (Institut Pertanian Bogor)
Nunung Nuryartono (Economics Department, Faculty of Economics and Management, IPB University)
Syamsul Hidayat Pasaribu (Economics Department, Faculty of Economics and Management, IPB University)



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

Focus and Scope Economic Development Analysis Journal is a scientific journal who published by Department of Economic Development, Faculty of Economics, Universitas Negeri Semarang, Indonesia. this journal published four times per year on February, May, August, and November and start publishing ...