arXiv
Open Access
2025
Capability Accumulation and Conditional Convergence: Towards a Dynamic Theory of Economic Complexity
Cesar A. Hidalgo
Viktor Stojkoski
Abstrak
We develop a dynamic model of economic complexity that endogenously generates a transition between unconditional and conditional convergence. In this model, convergence turns conditional as the capability intensity of activities rises. We solve the model analytically, deriving closed-form solutions for the boundary separating unconditional from conditional convergence and show that this model also explains the path-dependent diversification process known as the principle of relatedness. This model provides an explanation for transitions between conditional and unconditional convergence and path-dependent diversification.
Topik & Kata Kunci
Penulis (2)
C
Cesar A. Hidalgo
V
Viktor Stojkoski
Akses Cepat
Informasi Jurnal
- Tahun Terbit
- 2025
- Bahasa
- en
- Sumber Database
- arXiv
- Akses
- Open Access ✓