Economic complexity, diversification and economic development: The strategic factors.

The aim of this paper is to deliver an econometric panel data analysis on economic complexity by using annual data from 133 countries during the period from 1984 to 2018. This work admits that spatial heterogeneity and discontinuity may affect economic complexity and that there is a more accurate supranational level of analysis and economic policy. The paper shows that variables such as GDP per capita and economic vulnerability strongly affect the economic complexity of a country, while human capital and innovation rate are less significant. The potential of natural resources seems to be negatively correlated with economic complexity. • Analysis on economic complexity. • Spatial heterogeneity and discontinuity may affect economic complexity. • GDP per capita and economic vulnerability affect the economic complexity of different countries. • The potential of natural resources seems to be negatively correlated with economic complexity. [ABSTRACT FROM AUTHOR]