The German Marshall Fund of the United States
1744 R Street, NW
Washington, D.C. 20009

 

 

 

 

Recent research  conducted at Harvard University’s Center for International Development as well as the Massachusetts Institute of Technology has shown empirically that the productive structures of countries at different levels of development vary significantly, and that these differences explain income and future economic growth. Countries’ level of development hinges largely on what they are able to make, but making new products can be extremely challenging. What kinds of policies may help countries with underdeveloped productive capabilities move towards a more diversified economy?  How might U.S. and European trade and development policies help in this effort?

 

Answers to the first question can be found using the tools of Network Science—specifically the Product Space, a network summarizing empirical similarities between products.   Join Dr. Cesar Hidalgo of MIT as he explains this innovative model and its implications as applied in east and southern Africa.  GMF Resident Fellow Katrin Kuhlmann will then discuss possible policy connotations of Dr. Hidalgo’s findings and the ways in which the transatlantic policy community may be able to better target its trade and development efforts based on this exciting new research.