The Effect of the Technology Foreign Spillover and Entrepreneurship on Economic Complexity

Economic complexity is one of the main factors of economic growth and development. Hence, studying the factors affecting economic complexity is one of the most important studies in the field of economics. The economic complexity indicator is to measure the characteristics of products produced by economic systems in the countries. It is aimed at explaining the accumulated knowledge of the population of a country (the networks formed by people), resulting in visible industrial composition of countries. The fundamental goal of the present study is to examine the effect of Technology Foreign Spillover and entrepreneurship on economic complexity. To this end, a sample of The Organization of Islamic Cooperation (OIC) member countries during 2008-2016 has been employed using the Two-Step Generalized Method of Moments (GMM). The results of estimation of the model suggest that the Technology Foreign Spillover has a positive and insignificant effect and entrepreneurship has a positive and significant effect on the economic complexity. According to the research results, the economic freedom and global competitiveness index positively and significantly affect the economic complexity of the selected member countries of the Organization of Islamic Cooperation.
JEL Classification: O32, O34, P45