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Integrated database for economic complexity.

Aurelio Patelli1,2, Luciano Pietronero3,4, Andrea Zaccaria3,5

  • 1Centro di Ricerca Enrico Fermi, Via Panisperna 89 A, I-00184, Rome, Italy. aurelio.patelli@cref.it.

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This study introduces an integrated database combining services and goods exports, enhancing economic development analysis. It reveals economic fitness and competitiveness by analyzing trade networks and high-tech industry clusters.

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Area of Science:

  • Economics
  • Data Science
  • International Trade

Background:

  • Economic development analysis traditionally relies on physical goods exports.
  • The service sector's contribution to international trade and economic complexity is often underrepresented.
  • Existing frameworks may not fully capture a nation's economic competitiveness.

Purpose of the Study:

  • To develop an integrated database for investigating economic development.
  • To incorporate service export data alongside physical goods exports for a comprehensive market view.
  • To enhance the Economic Fitness and Complexity framework's analytical capabilities.

Main Methods:

  • Machine learning techniques were employed to reconstruct and integrate service export flows.
  • Export data for physical goods and services were combined to create a comprehensive international market database.
  • Statistical validation and network analysis were used to map economic activities and identify industry clusters.

Main Results:

  • An integrated database was created, offering a complete view of international trade in both goods and services.
  • A statistically validated network of economic activities revealed preferred development paths and high-tech industry clusters.
  • Economic Fitness metrics were computed, providing a more accurate assessment of national competitiveness by including services.

Conclusions:

  • The integrated database provides a robust tool for economic development research.
  • Incorporating service exports refines the assessment of Economic Fitness and national competitiveness.
  • The study highlights the importance of a holistic view of international trade for understanding economic complexity.