Business Intelligence

As You Sow So Shall You Reap: From Capabilities To Opportunities

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Executive Summary

The authors develop an Index of Opportunities for 130 countries based on their capabilities to undergo structural transformation. The Index of Opportunities has four dimensions, all of them characteristic of a country's export basket: sophistication; diversification; standardness; and possibilities for exporting with comparative advantage over other products. The rationale underlying the index is that, in the long run, a country's income is determined by the variety and sophistication of the products it makes and exports, which reflect its accumulated capabilities.

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