The Effects of Economic Complexity on Social Welfare in Selected Developing Countries

The quality of life and social welfare levels in countries is one of the most important development criteria. Accordingly, one of the goals of economic policy makers is to increase social welfare. One of the important and influential factors on social welfare of societies is the complexity of the economy. Economic complexity is an indicator that reflects the ability of countries to produce complex goods and utilize the knowledge in the production process. The complexity of the economy, influences on the social welfare of societies, through a strong relationship that exists between the generative structure and the income level and its distribution. the present study investigates the impact of the economic complexity on social welfare in developing countries during the period of 1996-2015, using the dynamic panel model and GMM methodol. according to the results of this study, with increasing economic complexity in developing countries, while the per capita income is increased, income distribution has become more unbalance. that is, increase in inequality of income overcomes on the increase in per capita income and overall, it has led to a reduction in social welfare. Therefore, it is imperative that developing countries review in their income redistribution policies. and put reducing income inequality in the center of attention