Abstract
In this paper we introduce a novel algorithm, called Exogenous Fitness,
to calculate the Fitness of subnational entities and we apply it to the
states of Brazil. In the last decade, several indices were introduced to
measure the competitiveness of countries by looking at the complexity of
their export basket. Tacchella et al (2012) developed a non-monetary
metric called Fitness. In this paper, after an overview about Brazil as
a whole and the comparison with the other BRIC countries, we introduce a
new methodology based on the Fitness algorithm, called Exogenous
Fitness. Combining the results with the Gross Domestic Product per
capita (GDP(p)), we look at the dynamics of the Brazilian states in the
Fitness-Income plane. Two regimes are distinguishable: one with high
predictability and the other with low predictability, showing a deep
analogy with the heterogeneous dynamics of the World countries.
Furthermore, we compare the ranking of the Brazilian states according to
the Exogenous Fitness with the ranking obtained through two other
techniques, namely Endogenous Fitness and Economic Complexity Index.
Users
Please
log in to take part in the discussion (add own reviews or comments).