Agricultural economic complexity and regional inequalities: a new approach using census data from Brazil

The paper presents an original application of economic complexity to the agricultural sector aiming to determine its suitability to measure and depict regional structural inequalities across Brazilian regions. Using census data, we calculate agricultural complexity indexes for products (PCI-Agro) and regions (ECI-Agro) and the agricultural product space. We show that higher PCI-Agro is associated with higher levels of productivity, education, income and human development. Also, we found that ECI-Agro is associated with higher productivity in agriculture. The econometric evidence points to an inverted ‘U’-shape curve relationship between ECI-Agro and agricultural productivity, which has significant policy implications.