Convergence in economic complexity: global evidence

This study explores the convergence pattern of economic complexity across a global sample of 129 countries from 1995 to 2020. The panel convergence method is employed, which endogenously identifies the membership of convergence clubs. The findings suggest that countries flock together in six distinct clubs. Upon further inspection, it becomes evident that factors such as population density, human capital, trade openness, foreign direct investment, and real GDP significantly influence the clubs' membership of economic complexity. Therefore, government policies must be specifically tailored to each club's determinants' unique characteristics to enhance a country's economic complexity.