THE EFFECTS OF ECONOMIC COMPLEXITY, EXPORT AND FIXED CAPITAL INVESTMENTS ON INCOME PER CAPITA: THE CASE OF G-20 COUNTRIES

In today's world economy, where the composition of exports has gained importance rather than the size of export volumes of countries, how sophisticated products a country produces and exports indicates the complexity level of that country. In this study, the effects of economic complexity index, export and gross fixed capital formation variables on per capita income are analyzed for 18 countries in the G-20 community. The findings of the study reveals positive impact of economic complexity index on per capita income for Brazil, China, Germany, Indonesia, Japan, Mexico, South Korea, Turkey and the US while revealing negative impact for Argentina, Australia, Canada, Saudi Arabia and the United Kingdom. Brazil is the only country differentiates from the other countries in the sense of having the increasing export share of primary products (raw materials and intermediate goods) while having decreasing export share of manufactured products and also in the sense of having positive significant relationship between the economic complexity level and per capita income.