Economic Complexity and Human Development: DEA performance measurement in Asia and Latin America

• Main Authors: Diogo Ferraz, Herick Fernando Moralles, Jessica Suárez Campoli, Fabíola Cristina Ribeiro de Oliveira, Daisy Aparecida do Nascimento Rebelatto
• Format: Article
• Language: Portuguese
• Published: Universidade Federal de São Carlos 2018-06-01
• Series: Gestão & Produção
• Subjects: Análise por Envoltória de Dados (DEA); Análise em janela; Complexidade econômica; Economic Complexity Index (ECI); Desenvolvimento humano
• Online Access: http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0104-530X2018005008101&lng=en&tlng=en

Abstract Economic growth is not the only factor to explain human development. Therefore, many authors have prioritized studies to measure the Human Development Index. However, these indexes do not analyze how Economic Complexity can increase Human Development. This paper aimed to determine how efficiently nations from Latin America and Asia measure a country’s performance in converting Economic Complexity into Human Development, between 2010 and 2014. We used Data Envelopment Analysis (DEA), through the Variable Returns of Scale (VRS) Model and Window Analysis. Results showed that in 2014, all Asian countries, except China and the Philippines, were efficient; on the other hand Cuba was the benchmark for inefficient countries. Window Analysis showed Japan, South Korea and Singapore were efficient over time. This result confirms the initial hypothesis of this article: the more complex countries are the more efficiently they create Human Development.