Abstract

Economic complexity is a crucial indicator reflecting the diversity and knowledge intensity of a country's productive structure. Measured by considering the complexity of products within export baskets and the extent to which these products can be produced globally, this concept reveals the sophistication of the production structure and, consequently, its competitiveness. Financial development, on the other hand, is associated with the depth, accessibility, and efficiency of financial institutions and markets, supporting investment and economic growth processes by ensuring the allocation of resources to productive areas. These two elements are regarded as complementary structural factors that influence economic growth through different channels while interacting with each other. In this study, the effects of economic complexity and financial development on economic growth are analyzed for 36 OECD countries during the 2001–2021 period using the dynamic system GMM method. To account for the dynamic nature of growth, a lagged dependent variable is included in the model, and household consumption and gross fixed capital formation are utilized as control variables. The findings indicate that economic complexity and financial development have statistically significant and positive effects on economic growth. The results demonstrate that the increasing complexity of the production structure and the enhanced efficiency of the financial system are complementary mechanisms supporting economic growth. These findings highlight the importance of integrated policies that both increase the efficiency of the financial system and support the transition to high value-added and knowledge-intensive production structures to ensure sustainable growth.

Key words: Economic Complexity, Financial Development, Economic Growth, System GMM, OECD Countries. Jel Codes: O11, O16, O47, F14.

Article Language: EnglishTurkish