Abstract
Living in a world where we can expand our economic wealth and the richness of human life is the core of the human development concept. Greater well-being for all can be achieved by improving people’s capabilities and more importantly, by giving individuals the ability to use their knowledge and skills. The economic complexity index (i.e., ECI) is a new indicator that defines a country’s complexity. Through a vast network, citizens can transfer an enormous quantity of relevant knowledge, leading to the creation of diversified and complex products. However, the relationship between economic complexity and human development is not that simple. Thus, this paper aimed to understand it deeper—international migration and logistics performance are used as moderators. Hierarchical linear modeling was the statistical tool used to analyze two groups of countries from 1990 to 2017. For robustness and to deal with possible endogeneity issues, different year lags were also included. The results show that international migration and logistics performance are decisive moderators as they change the relationship between economic complexity and human development.
Highlights
In the last decade, there has been a growing interest in the academic field on economic complexity and its linkage to sustainability [5,12], we contribute to the field of research by analyzing the moderating effects of international migration, and logistics performance which is an underestimated indicator that plays a key role in explaining the relationship between economic complexity and human development
The results induce that economic complexity first negatively impacts the human development level in high human development index (HDI) countries, which will become positive in the long term under certain conditions
The results suggest that immigration only plays as a moderator for high HDI countries, while logistics performance plays a moderator for both groups of countries
Summary
We believe that international migration and logistics performance may play as moderators and influence the relationship between economic complexity and human development. In the last decade, there has been a growing interest in the academic field on economic complexity and its linkage to sustainability [5,12], we contribute to the field of research by analyzing the moderating effects of international migration, and logistics performance which is an underestimated indicator that plays a key role in explaining the relationship between economic complexity and human development. This paper is structured as follows: we discuss the relationship between human development, social development, economic complexity, international migration, and logistics performance. We discuss our findings and the possibilities of future research
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