Economic Complexity & Fitness Algorithm

Hidalgo-Hausmann ECI, Tacchella fitness-complexity, bipartite country-product network

Network Setup

Ranking

Top country F
Top product C
Corr(F,GDP)
Density
Converged

Revealed comp. advantage:

M_{c,p} = 1 if RCA_{c,p} ≥ 1

Fitness (Tacchella 2012):

F̃_c = Σ_p M_{c,p} · Q_p

Q̃_p = 1/(Σ_c M_{c,p}/F_c)

Normalize: F_c = F̃_c/⟨F̃⟩

ECI (Hidalgo):

ECI = (k_c − ⟨k_c⟩)/σ

Fitness = nonlinear iteration
captures nested structure of trade