Publication: The Incidence of Culture, Governance, and Economics on the Countries’ Development through an Analysis of Coupled Networks
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2016-03-30
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2016-03-30
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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.
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“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. http://hdl.handle.net/10986/26192 License: CC BY 3.0 IGO.”
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