Interesting new research summarized by Noah Smith:
“Now, a number of
economists are working on new empirical approaches that take into account the
huge variety and complicated connections between the products and services that
get traded across international borders.
Two such economists
are Ricardo Hausmann of Harvard’s Kennedy School and Cesar Hidalgo of
Massachusetts Institute of Technology. They and their research team have a
theory that the more different products a country makes, the better positioned
it is to grow.”