THE ECONOMIC COMPLEXITY INDEX AS AN EVALUATION TOOL OF THE DEVELOPMENT LEVEL AND ECONOMIC POTENTIAL OF THE COUNTRY

Abstract

Goal. Determining the essence of the index of economic complexity and the feasibility of its use as a tool for assessing the level of development and economic potential of the country. Method. A systematic approach, a deductive method, comparison, grouping, generalization were applied in order to solve these tasks. Results. In this paper, the essence of the economic complexity index and the expediency of its use as evaluation tool of the development level and economic potential of the country are investigated. It is determined that it is the most complex and accurate indicator, that characterize the level of manufacturability and diversification of a particular national economy. It is found out that the index can be considered not only as a descriptive indicator, but also as a tool for predicting the growth of the country's economy. The ability of the index to predict changes in gross national income per capita more accurately than traditional management tools, such as the human development index or the global competitiveness index, is estimated. The nature and stability level of the correlation between the level of gross national income per capita and the value of economic complexity index are characterized. It has been found that the index also provides a statistically more accurate explanation of interstate variations in income inequality than the Kuznets curve. In particular, a negative correlation with the Gini coefficient was analyzed, which allowed to suggest that the distribution of income in complex economies is more uniform than in simple ones. Practical importance. The relationship between the effectiveness of the education system in the country and its economic complexity is considered. It has been established that one of the most important priorities for any country is the creation of high-quality and available education as a process of transferring accumulated knowledge and skills. It is determined that the main factors of a successful economy are a developed manufacturing sector, a network of technological knowledge between universities and enterprises, as well as a high quality of human capital