Sophisticated jobs matter for economic complexity: An empirical analysis based on input-output matrices and employment data

Abstract

A wide range of economic development theoreticians has discussed the manufacturing sector's properties as an engine for economic growth. More recently, the sophisticated services sector began to share similar characteristics with the industrial sector as a driver for economic growth, particularly as a locus of technological innovation. This paper considers the symbiotic relationship between these two sectors, and assesses their importance in the technological development of countries. More precisely, this study uses economic complexity analysis and input-output matrices to assess the importance of employment creation in advanced sectors of countries. Results show that in the long-run economic complexity depends on the effort and the ability of countries to generate employment in manufacturing and sophisticated services sectors. © 2017 Elsevier B.V.