Economic Complexity
#permalink to sectionThe Economic Complexity (EC) methodology uses high-resolution data on the activities that are present in a given geography to predict the development dynamics of countries, cities and regions. The EC theoretical framework can use different data sources can be used to calculate EC (employment, production, exports, patents). In general, the rule is to use the data with the best resolution and manifestation of economic activities.
The complexity is related to the capacities, resources, technologies, human capital and infrastructure required for its development. One measure of such complexity is the Economic Complexity Index (ECI), which captures how complex an economy is by identifying both the activities it can successfully carry out and where else those activities are present. CE can be applied using data on the manufacture, sales or export of products, in which case we speak of Economic Complexity of Products (PCI) and can also be calculated using data on employment or production of economic activities through the Index of Complexity of Activities Economics (ACI).
According to the Observatory of Economic Complexity, in 2022 Mexico was the 11th economy in total exports, the 13th in total imports, and the 22 most complex economy in terms of the ECI.
In the second half of 2022, the most complex states in Mexico with respect to the accumulation of capabilities measured by the size of the labor force were Nuevo León (1.78), Querétaro (1.64), and Baja California (1.28). The most complex metropolitan areas based on the criteria as above were Juárez (2.27), Monterrey (2.16), and Querétaro (2.16).
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Geographical
Industries
ProductsGeographical Economic Complexity
#permalink to sectionEconomic Complexity Evolution
#permalink to sectionArgentina
Brazil
Canada
Spain
United States
Over the past 10 years, Mexico's economy has become relatively more complex globally, rising from position 26 in 2012 to position 22 in 2022.
Source: Observatory of Economic Complexity (OEC).
Territorial Economic Complexity
#permalink to sectionThe map shows the difference in Economic Complexity Index (ECI) between the different geographic areas. Colors closer to blue indicate greater economic complexity and values closer to red refer to less complexity.
A higher ECI value is commonly related to the presence of comparative advantages in more complex industries that are generally developed in a small number of territories.
The ECI is calculated from a proxy metric of the number of workers by industry group.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Most Complex Industries
#permalink to sectionThe chart shows the industries with the highest Industry Complexity Index (ACI) in Nuevo León, calculated from a proxy metric of the number of workers by industry, according to the year and the industrial level defined by the user.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Industry Specialization
#permalink to sectionThe chart shows the industries with the greatest comparative advantage(especialization) in Nuevo León, calculated from a proxy metric of the number of workers by industry, according to the year and the level of industry defined by the user.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Industry Space
#permalink to sectionThe industry space corresponds to the relationship between the economic activities that make up the productive structure of a locality The existence of links between the graphed industries represent a high level of co-occurrence in the generation of employment in said industries at the national level.
The densest zones of the industry space represent those areas where the industries with the highest correlation with each other are concentrated.
The colored nodes in the visualization represent industries developed by by geographic location of interest, according to the year and the comparative advantage (RCA) defined by the user.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Industry Diversification Frontier
#permalink to sectionThe graph of Relatedness-Complexity by industrial activity compares the risk and the strategic value of the opportunities to develop an industrial activity in a territory. High relatedness is a good indicator of a high probability that a state will increase market size in an industry.
In the graph, each circle represents an industry and its size is associated with a proxy for the number of employees. The larger the circle, the greater the number of people employed in that industry.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Product Diversification Frontier
#permalink to sectionThe Relatedness-Complexity graph by product compares the risk and the strategic value of the opportunities of developing a certain product in a territory. A high relatedness is a good indicator of a high probability that a state will increase the size of the market in said product.
In the graph, each circle represents a product and its size is associated with the value of exports. The larger the circle, the greater the value of exports of that product.
Source: Prepared by DataMéxico with information from the Merchandise Trade Balance of Mexico.
Industry Economic Complexity
#permalink to sectionEconomic Activity Complexity Index
#permalink to sectionThe table represents the Economic Activity Complexity Index (ACI) calculated for the selected industrial level, considering industries that have at least 300 people employed in the selected year.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Most Complex Geographies by Industry
#permalink to sectionThe graph shows the states with greater complexity for Insurance and Surety Companies, calculated from a proxy metric of the number of workers by industry in the year defined by the user.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Effective territories
#permalink to sectionThe map shows the specialization of territories for Insurance and Surety Companies.
Specialization is measured by means of the Revealed Comparative Advantage Index (RCA) and indicates whether the territories present a comparative advantage for the development of the activity.
By selecting the dichotomous scale, you can easily distinguish the territories where the industry of interest has comparative advantages, coloring in green those regions where specialization exists (implying a RCA > 1).
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Industry proximity
#permalink to sectionThe ring chart shows the industries that are most closely related to Insurance and Surety Companies, located in the center of the visualization.
The industries shown on the periphery have some degree of similarity in terms of the productive skills and knowledge required for their operation compared to the industry of interest.
Source: Prepared by DataMéxico with information from the National Statistical Directory of Economic Units (DENUE).
Product Economic Complexity
#permalink to sectionProduct Complexity Index
#permalink to sectionThe table presents the Product Complexity Index (PCI) calculated for 4-digit products according to the Harmonized System (HS4) in the selected year and that are exported by Mexico.
Source: Prepared by DataMéxico with information from BACI - HS6 REV. 2012 (2012 - 2020)
Product Space
#permalink to sectionThe product space corresponds to the relationship between the products that make up the productive structure of a locality. The existence of links between the graphed products represent a high level of co-export worldwide (when a country exports one of these products, it is likely that it also exports the product that is connected) (Hidalgo, et.al. 2007).
The densest zones of the product space represent those areas where the products with the highest correlation with each other are concentrated, that is, those products that have similar requirements for their development.
The colored nodes in the visualization represent the products exported by the territory and their size is associated with the value of exports according to the year defined by the user in the selectors. The length of the bonds is associated with the proximity or co-occurrence of the products.
Source: Prepared by DataMéxico with information from BACI - HS6 REV. 2012 (2012 - 2020)
Product Diversification Frontier for Mexico
#permalink to sectionThe Relatedness-Complexity graph by product compares the risk and the strategic value of the opportunities of developing a certain product in a territory. A high relatedness is a good indicator of a high probability that a state will increase the size of the market in said product.
In the graph, each circle represents a product and its size is associated with the value of exports. The larger the circle, the greater the value of exports of that product.
Source: Prepared by DataMéxico with information from the Merchandise Trade Balance of Mexico.