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August 22, 2025World Economy

The Heterogeneous Effect of Economic Complexity on Growth and Human Development: New Empirical Evidence Using Buffered Panel Threshold Regression

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Authors

FHFayçal HamdiSSSaı̈d SouamMZMessaoud Zouikri

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Overview

Empirical evidence shows that economic complexity affects growth and human development variably based on resource dependency and institutional quality.

Key Points

  • A nonlinear relationship exists between economic complexity and growth, influenced by institutional quality and resource dependence.
  • The study reveals heterogeneous effects of economic complexity on growth and human development across different economies from 2002 to 2016.
  • Buffered Threshold Panel Data model analysis indicates both positive and negative impacts of economic complexity based on a country's dependency on resources.
  • Findings support the convergence hypothesis for growth while suggesting divergence for human development based on institutional quality.

Cite This Study

Hamdi et al. (2025) studied this question.

synapsesocial.com/papers/68af59d2ad7bf08b1eaddfedhttps://doi.org/10.1111/twec.70023
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