structural transformation

World map showing a network of industries as economies shift from agriculture to manufacturing and advanced technology, illustrating economic structural change.

Economies don’t just “grow” — they learn. They change what they’re good at, one step at a time.

Economies don’t just grow; they learn. A new Nature Communications paper builds a dynamic model where countries expand into industries related to what they already do, then shows that this simple rule explains decades of global structural change — and quietly reinterprets popular economic complexity metrics like ECI and Fitness as summaries of long-run development paths, not magic measures of hidden capabilities.

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