Ricardo Hausmann: Taking Stock of Complexity Economics 4/5

The video explores complexity economics, questioning why some countries are rich while others are poor. It introduces the Scrabble theory of production, suggesting that countries with more 'letters' (capabilities) can produce more complex products. The discussion highlights the importance of economic complexity in understanding global income disparities and growth patterns. The speaker argues that the globalization of value chains facilitates convergence, allowing countries to participate in production with fewer capabilities.

How does the speaker propose to measure a country's diversification in terms of economic letters?

What does the speaker mean by the 'chicken and egg problem' in relation to accumulating economic letters?

What implications does the speaker draw from the historical data on economic complexity?

In what way does the speaker suggest that globalization affects economic convergence?