3min chapter

Odd Lots cover image

How Economic Complexity Explains Which Countries Become Rich

Odd Lots

CHAPTER

The Importance of a Dense Product Space

In order to make garments and export them competitively right you need an industrial zone where materials can go in and out. It has taken 15 years for Ethiopia to get into it and their billion. They had to build these industrial zones they had to provide electricity to these industrial zones, they had to build a railway to Djibouti. But once you have that ecosystem, well in the same industrial zone, maybe with the same port and the same electricity and the same water and maybe even the same workers you could assemble electronics or auto parts. Diversifying in an industrial kind of manufactured to another kind of manufactured is much easier.

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