The atlas of economic complexity: a review

This discussion paper provides an exploration of the methodology used by Hausmann et al.’s (2014) Atlas of Economic Complexity. The Atlas provides a novel alternative to mainstream theories of economic growth and international trade. At the heart of the approach is an attempt to quantify the productive knowledge of a nation, which is inferred using a network-based approach to economic analysis. The authors argue that nations which possess greater productive knowledge, represented in a measure termed Economic Complexity, will produce more products and more complex products as part of their export baskets. This represents a significant departure when compared to earlier theories which suggest that more highly developed countries will produce more specialised goods. This discussion paper proceeds as follows: first, an overview of the Atlas’ methodology is provided; then commentary will turn to the strengths and weaknesses of this approach.