Bringing links back: economic complexity as network centrality in the Product Space


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Yenilmez T.

JOURNAL OF PHYSICS-COMPLEXITY, cilt.7, sa.3, 2026 (ESCI, Scopus)

Özet

This paper reframes economic complexity metrics as centrality values in the Product Space. Instead of searching for the 'best' algorithm to calculate a superior complexity index, I propose utilizing different centrality values in a complementary fashion to explain export diversification and income. The linear economic complexity index, the non-linear country Fitness, and network degree and closeness centralities share a large common component, yet each retains a distinct aspect of a country's position in the network. As a result, country income, diversification, and growth are each best explained by different centrality metrics. The paper argues that the explanatory power of complexity metrics stems from the connections an export basket holds in the Product Space. The centrality approach can strengthen the network implications of the Product Space for developing countries. Since the current location and opportunities of each developing country differ, a centrality approach can better provide country-specific development targets and policy prescriptions.