Complexity-Based Economic Growth: Integrating Productivity, Industrial Structure, and National Competitiveness
DOI:
https://doi.org/10.62872/tdabdg04Keywords:
Economic Complexity, Productivity, Industrial Structure, National Competitiveness, Economic GrowthAbstract
Economic growth is increasingly understood as a complexity-based process that integrates productivity, industrial structure, and national competitiveness within a unified system. This study aims to analyze how complexity-driven economic growth emerges through the interaction of these key dimensions. The research employs a qualitative approach with a descriptive-analytical design using a literature-based method. Data were collected from reputable scholarly journals and international reports and analyzed using content and thematic analysis to identify patterns related to economic complexity, productivity dynamics, and structural transformation. The findings reveal that economic complexity significantly enhances productivity by fostering diversified, interconnected, and knowledge-intensive industrial structures. Structural transformation from low-productivity sectors to advanced manufacturing and services plays a crucial role in increasing total factor productivity and strengthening global competitiveness. In addition, innovation, institutional quality, and industrial linkages are identified as key drivers of sustainable growth. However, challenges such as limited technological capacity, structural rigidity, and policy misalignment remain critical, particularly in developing economies. The discussion highlights the importance of integrated and capability-based industrial strategies to overcome these constraints. In conclusion, complexity-based economic growth provides a comprehensive framework for achieving sustainable and competitive development when supported by innovation, institutional strength, and strategic policy alignment.
Downloads
References
Adebayo, T. (2023). Towards unlocking the chain of sustainable development in the BRICS economies: Analysing the role of economic complexity and financial risk. Geological Journal, 58, 1810–1821. https://doi.org/10.1002/gj.4694
Ahmed, Z., Can, M., Sinha, A., Ahmad, M., Alvarado, R., & Rjoub, H. (2022). Investigating the role of economic complexity in sustainable development and environmental sustainability. International Journal of Sustainable Development & World Ecology, 29, 771–783. https://doi.org/10.1080/13504509.2022.2097330
Balland, P., Broekel, T., Diodato, D., Giuliani, E., Hausmann, R., O’Clery, N., & Rigby, D. (2022). The new paradigm of economic complexity. Research Policy, 51. https://doi.org/10.1016/j.respol.2021.104450
Balland, P., Broekel, T., Diodato, D., Giuliani, E., Hausmann, R., O’Clery, N., & Rigby, D. (2022). Reprint of the new paradigm of economic complexity. Research Policy. https://doi.org/10.1016/j.respol.2022.104568
D’Ingiullo, D., Odoardi, I., Quaglione, D., & Di Berardino, C. (2024). Exploring the nexus between exports’ economic complexity and institutional quality: Insights from Italian provinces. Regional Studies, Regional Science, 11, 667–695. https://doi.org/10.1080/21681376.2024.2405580
De Cunzo, F., Petri, A., Zaccaria, A., & Sbardella, A. (2022). The trickle down from environmental innovation to productive complexity. Scientific Reports, 12. https://doi.org/10.1038/s41598-022-25940-6
Ferraz, D., Falguera, F., Mariano, E., & Hartmann, D. (2021). Linking economic complexity, diversification, and industrial policy with sustainable development: A structured literature review. Sustainability, 13, 1265. https://doi.org/10.3390/su13031265
Harahap, M., Wurarah, R., Fathurohman, A., Suroso, A., & Iskandar, Y. (2023). Globalization substance and industrial revolution 4.0 and the role of technological innovation for economic development towards entrepreneurship. Jurnal Bisnisman: Riset Bisnis dan Manajemen. https://doi.org/10.52005/bisnisman.v4i3.122
Hartmann, D., & Pinheiro, F. (2022). Economic complexity and inequality at the national and regional level. **
Hassan, S., Basumatary, J., & Mishra, B. (2025). Role of governance, resource rents, and economic complexity in economic growth: A BRICS analysis. Journal of Public Affairs. https://doi.org/10.1002/pa.70058
Hidalgo, C. (2021). Economic complexity theory and applications. Nature Reviews Physics, 3, 92–113. https://doi.org/10.1038/s42254-020-00275-1
Hoeriyah, L., Nuryartono, N., & Pasaribu, S. (2022). Economic complexity and sustainable growth in developing countries. Economics Development Analysis Journal. https://doi.org/10.15294/edaj.v11i1.47294
Hou, J., Yu, D., & Song, H. (2025). Evolution of industrial structure and economic growth in Hebei Province, China. Sustainability. https://doi.org/10.3390/su17177756
Kang, D., Heo, P., & Lee, D. (2022). Global trade of South Korea in competitive products and their impact on regional dependence. PLoS ONE, 17. https://doi.org/10.1371/journal.pone.0267695
Kudrov, A. (2023). The impact of economic complexity and industry specialization on the gross regional product of Russian regions. Business Informatics. https://doi.org/10.17323/2587-814x.2023.4.25.40
Markaki, M., & Economakis, G. (2022). International structural competitiveness and the hierarchy in the world economy. World Review of Political Economy. https://doi.org/10.13169/worlrevipoliecon.12.2.0195
Maulidar, P., Yulfianti, C., & Prasetyo, F. (2025). Economic complexity as a driver of economic growth in Indonesia: A multidimensional analysis of trade, technology, and research. Ekonomikalia Journal of Economics. https://doi.org/10.60084/eje.v3i2.346
Ngqoleka, S., Ncanywa, T., Mpongwana, Z., & Asaleye, A. (2025). Industrial diversification in emerging economies: The role of human capital, technological investment, and institutional quality in promoting economic complexity. Sustainability. https://doi.org/10.3390/su17157021
Pankratova, O. (2021). Increasing the role of competitiveness of the national economy as a factor of economic growth in the conditions of globalization. Market Infrastructure. https://doi.org/10.32843/infrastruct52-6
Pintar, N., & Scherngell, T. (2021). The complex nature of regional knowledge production: Evidence on European regions. Research Policy, 104170. https://doi.org/10.1016/j.respol.2020.104170
Shao, C., Dong, H., & Gao, Y. (2024). New quality productivity and industrial structure in China: The moderating effect of environmental regulation. Sustainability. https://doi.org/10.3390/su16166796
Stojanović, V. (2021). Knowledge in the concept of national competitiveness in the era of the fourth industrial revolution. KNOWLEDGE - International Journal. https://doi.org/10.35120/kij4701045s
Sun, J., Tang, D., Kong, H., & Boamah, V. (2022). Impact of industrial structure upgrading on green total factor productivity in the Yangtze River economic belt. International Journal of Environmental Research and Public Health, 19. https://doi.org/10.3390/ijerph19063718
Thomas, J., & Chakraborty, A. (2026). Economic complexity and regional development in India: Insights from a state-industry bipartite network. **
Tian, X., & Zhang, H. (2024). Analysis of the impact factors of industrial structure upgrading on green total factor productivity from the perspective of spatial spillover effects. Heliyon, 10. https://doi.org/10.1016/j.heliyon.2024.e28660
Xue, R., Li, K., Wang, F., & Baron, C. (2023). Research progress and hot-spot analysis of the economic complexity research based on CiteSpace. Advances in Management and Applied Economics. https://doi.org/10.47260/amae/14110
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Moh Zaini (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
