Economic Fitness Ranking (1 = high, 149 = low)

Limitations and exceptions: The trade data are necessary to define a coherent network for all countries and all products. This may have some limitations for countries in which the exported products are not a good proxy of its industrial competitiveness. Also export refers generally to manufacturing. Services can be included but the corresponding database trade in services are less granular. In principle the approach could use other data like the labor statistics which automatically include all services. A basic concept of the algorithm is the importance of diversification. This is correct at the level of countries but it becomes gradually problematic if one moves to smaller scales like regions, cities up to individual firms where specialization becomes dominant. In these cases suitable modifications should be considered. The COMTRADE dataset comes at different levels of granularity. Each level has advantages and disadvantages which should be considered in relation to the problem addressed. Statistical concept and methodology: The new literature of Economic Fitness uses techniques which, differently from traditional index construction approaches, do not try to average out the complexity of the system, but embraces it by explicitly building on the heterogeneity of individual actors, activities and interactions to extract relevant parameters to characterize the system.  In this way, information about production capabilities may be extracted from trade in goods.  The interaction among products traded, and the relatively unique combinations are a precursor to future competitiveness and long-term growth.  A basic characteristic of Economic Fitness is being parameter free. The standard methods of analysis consider many elements and sum them up in some suitable way. This sum of incommensurate elements leads to a major problem of controlling noise while increasing signal. The Fitness approach starts by considering a single dataset to control noise problems.  Other data can then be added later in a controlled hierarchical framework 9e.g, services, technologies). The algorithm is designed on simple and transparent economical concepts which have a clear meaning and have been extensively tested. The evolution of each country is defined in the GDP-Fitness space which shows a strong heterogeneity in the dynamics. There is zone characterized by regular flow and another one which is more chaotic. This implies that growth forecasting should consider this heterogeneity and go beyond standard regressions. This novel approach to the analysis and long-term forecasting has been shown to outperform the standard methods even if it requires much less data.
Publisher
The World Bank
Origin
Global
Records
3129
Source
Economic Fitness Ranking (1 = high, 149 = low)
country_code year value
AFG 1995 99
AGO 1995 147
ALB 1995 75
AND 1995 51
ARE 1995 86
ARG 1995 46
ARM 1995 118
AUS 1995 36
AUT 1995 11
AZE 1995 109
BDI 1995 128
BEL 1995 8
BEN 1995 108
BFA 1995 116
BGD 1995 85
BGR 1995 35
BHR 1995 102
BIH 1995 64
BLR 1995 58
BLZ 1995 103
BOL 1995 95
BRA 1995 25
BRN 1995 142
BTN 1995 123
CAF 1995 113
CAN 1995 29
CHE 1995 7
CHL 1995 66
CHN 1995 13
CIV 1995 94
CMR 1995 115
COD 1995 130
COG 1995 136
COL 1995 57
CRI 1995 74
CYP 1995 54
CZE 1995 10
DEU 1995 1
DNK 1995 15
DZA 1995 110
ECU 1995 91
EGY 1995 59
ERI 1995 100
ESP 1995 12
EST 1995 33
ETH 1995 125
FIN 1995 24
FRA 1995 6
GAB 1995 145
GBR 1995 4
GEO 1995 70
GHA 1995 124
GIN 1995 127
GMB 1995 88
GNB 1995 143
GRC 1995 41
GRL 1995 133
GTM 1995 61
GUY 1995 132
HND 1995 77
HRV 1995 31
HUN 1995 18
IDN 1995 40
IND 1995 16
IRL 1995 28
IRN 1995 122
IRQ 1995 146
ISL 1995 82
ISR 1995 20
ITA 1995 5
JOR 1995 65
JPN 1995 3
KAZ 1995 78
KEN 1995 73
KGZ 1995 76
KHM 1995 117
KOR 1995 17
KWT 1995 141
LAO 1995 111
LBN 1995 55
LBR 1995 131
LBY 1995 138
LTU 1995 45
LVA 1995 53
MAR 1995 60
MDG 1995 90
MEX 1995 21
MKD 1995 42
MLI 1995 105
MLT 1995 68
MMR 1995 107
MNE 1995
MNG 1995 119
MOZ 1995 112
MRT 1995 139
MWI 1995 89
MYS 1995 39
NER 1995 87
NGA 1995 134
NIC 1995 79

Economic Fitness Ranking (1 = high, 149 = low)

Limitations and exceptions: The trade data are necessary to define a coherent network for all countries and all products. This may have some limitations for countries in which the exported products are not a good proxy of its industrial competitiveness. Also export refers generally to manufacturing. Services can be included but the corresponding database trade in services are less granular. In principle the approach could use other data like the labor statistics which automatically include all services. A basic concept of the algorithm is the importance of diversification. This is correct at the level of countries but it becomes gradually problematic if one moves to smaller scales like regions, cities up to individual firms where specialization becomes dominant. In these cases suitable modifications should be considered. The COMTRADE dataset comes at different levels of granularity. Each level has advantages and disadvantages which should be considered in relation to the problem addressed. Statistical concept and methodology: The new literature of Economic Fitness uses techniques which, differently from traditional index construction approaches, do not try to average out the complexity of the system, but embraces it by explicitly building on the heterogeneity of individual actors, activities and interactions to extract relevant parameters to characterize the system.  In this way, information about production capabilities may be extracted from trade in goods.  The interaction among products traded, and the relatively unique combinations are a precursor to future competitiveness and long-term growth.  A basic characteristic of Economic Fitness is being parameter free. The standard methods of analysis consider many elements and sum them up in some suitable way. This sum of incommensurate elements leads to a major problem of controlling noise while increasing signal. The Fitness approach starts by considering a single dataset to control noise problems.  Other data can then be added later in a controlled hierarchical framework 9e.g, services, technologies). The algorithm is designed on simple and transparent economical concepts which have a clear meaning and have been extensively tested. The evolution of each country is defined in the GDP-Fitness space which shows a strong heterogeneity in the dynamics. There is zone characterized by regular flow and another one which is more chaotic. This implies that growth forecasting should consider this heterogeneity and go beyond standard regressions. This novel approach to the analysis and long-term forecasting has been shown to outperform the standard methods even if it requires much less data.
Publisher
The World Bank
Origin
Global
Records
3129
Source