Publication: The Incidence of Culture, Governance, and Economics on the Countries’ Development through an Analysis of Coupled Networks
Date
2016-03-30
ISSN
Published
2016-03-30
Author(s)
Castaneda, Gonzalo
Chavez-Juarez, Florian
Abstract
This paper introduces an innovative
methodology that combines industry level information
(exports, HA 4-digits) with indicators at the country level,
to analyze which social capabilities are important to
explain the observed patterns of structural transformation.
The authors consider several indicators to characterize
three dimensions: cultural, governance, and economic, plus
only one indicator (polity) for a political dimension.
Through the use of the product space, a measure of density
that identifies the proximity of non-developed products to
the countries’ export profile, and a system of coupled
networks where densities are adjusted in terms of social
affinities, the authors find the following main results: (i)
countries can be competitive in certain industries even if
they do not have a high value in some of these indicators;
(ii) the governance dimension is closely related on how the
countries’ export profiles are positioned in the product
space; and (iii) all of these dimensions, but not all the
indicators, help explain the observed process of structural
transformation and the widening of the gap between poor and
rich countries.
Citation
“Castaneda, Gonzalo; Chavez-Juarez, Florian. 2016. The Incidence of Culture, Governance, and Economics on the Countries’ Development through an Analysis of Coupled Networks. World Development Report Background Paper;. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/26192 License: CC BY 3.0 IGO.”