Found 129 article(s) for author 'Ricardo Hausmann'

China’s Malign Secrecy

China’s Malign Secrecy. Ricardo Hausmann, January 2, 2019, Opinion, “In principle, China’s massive savings, infrastructure know-how, and willingness to lend could be great for developing economies. Alas, as many countries have learned the hard way, Chinese development finance often delivers a corruption-filled sugar high to the economy, followed by a nasty financial (and sometimes political) hangover.Link

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Machine-learned patterns suggest that diversification drives economic development

Machine-learned patterns suggest that diversification drives economic development. Ricardo Hausmann, Matthew Bonds, December 11, 2018, Paper, “We develop a machine-learning-based method, Principal Smooth-Dynamics Analysis (PriSDA), to identify patterns in economic development and to automate the development of new theory of economic dynamics. Traditionally, economic growth is modeled with a few aggregate quantities derived from simplified theoretical models. Here, PriSDA identifies important quantities. Applied to 55 years of data on countries’ exports, PriSDA finds that what most distinguishes countries’ export baskets is their diversity, with extra weight assigned to more sophisticated products. The weights are consistent with previous measures of product complexity in the literature. The second dimension of variation is a proficiency in machinery relative to agriculture. PriSDA then couples these quantities with per-capita income and infers the dynamics of the system over time. According to PriSDA, the pattern of economic development of countries is dominated by a tendency toward increased diversification. Moreover, economies appear to become richer after they diversify (i.e., diversity precedes growth). The model predicts that middle-income countries with diverse export baskets will grow the fastest in the coming decades, and that countries will converge onto intermediate levels of income and specialization. PriSDA is generalizable and may illuminate dynamics of elusive quantities such as diversity and complexity in other natural and social systems.” Link

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The workforce of pioneer plants: The role of worker mobility in the diffusion of industries

The workforce of pioneer plants: The role of worker mobility in the diffusion of industries. Ricardo Hausmann, October 2018, Paper, “Because many skills are tacit and specific to an industry, the diffusion of industries and the technologies they employ often requires that workers skilled in the use of these technologies relocate to the new region…Link

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The Albanian Miracle

The Albanian Miracle. Ricardo Hausmann, September 27, 2018, Opinion, “Once the “North Korea of Europe,” Albania now boasts an income level that is 25% that of Germany, double-digit export growth, and a strengthening currency. This suggests that the economists and multilateral institutions now being blamed for all sorts of disappointing outcomes may not be entirely useless after all.Link

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The knowhow path to Sri Lankan development

The knowhow path to Sri Lankan development. Ricardo Hausmann, September 6, 2018, Opinion, “Sri Lankans shouldn’t fear foreigners, says Ricardo Hausmann, a professor of economics at the Harvard Kennedy School. Foreigners, with their knowhow, can actually help transform the economy as other successful countries have done by integrating foreign migrants and their own diaspora into their societies, Hausman argues in this opinion piece the full text of which follows:…Link

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Place-specific Determinants of Income Gaps: New Sub-National Evidence from Chiapas, Mexico

Place-specific Determinants of Income Gaps: New Sub-National Evidence from Chiapas, Mexico. Ricardo Hausmann, 2018, Paper, “The literature on income gaps between Chiapas and the rest of Mexico revolves around individual factors, such as education and ethnicity. Yet, twenty years after the Zapatista rebellion, the schooling gap between Chiapas and the other Mexican entities has shrunk while the income gap has widened, and we find no evidence indicating that Chiapas indigenes are worse-off than their likes elsewhere in Mexico. We explore a different hypothesis. Based on census data, we calculate the economic complexity index, a measure of the knowledge agglomeration embedded in the economic activities at a municipal level in Mexico. Economic complexity explains a larger fraction of the income gap than any individual factor. Our results suggest that chiapanecos are not the problem, the problem is Chiapas. These results hold when we extend our analysis to Mexico’s thirty-one federal entities, suggesting that place-specific determinants that have been overlooked in both the literature and policy, have a key role in the determination of income gaps.Link

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The Slavery Incentive

The Slavery Incentive. Ricardo Hausmann, August 31, 2018, Opinion, “By restricting the workers’ outside options, employers may get them to accept terms that freer individuals would reject. That may be a reason why there is so little urgency in solving the problem of undocumented immigrants in the US, and why many countries protect citizens differently than foreigners.Link

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