Socio-economic complexity, fractal dimension and sustainability of the regions: Baltic countries case
ENIn this work we analyze the relations between GDP growth, productive economy and complexity of relations at productive economy network. It is known that the growth of economic complexity is a key factor for the competitiveness and sustainability of the regions. Fractal dimension was used as a tool to estimate the complexity of the productive economy by evaluating relations at trade network of country. GDP evolution, mapping of productive economy and fractal dimension of trade network in Baltic countries were investigated for the period 2003 -2012. The results of Baltic countries were analyzed in comparison with the core economies of European Union. The research results demonstrate that just GDP growth is not an adequate indicator to forecast the strategic sustainability of the regions and can lead to a strategic decision making mistakes, even in the development of Smart Specialization and the KET’s (Key Enabling Technologies) Strategy for European Regions. Density and quality of productive relations, accumulation of productive knowledge and skills through productive collaboration, complexity of economy in general, stimulate productive capabilities and competitiveness of the region and is a key ingredient for the Future of Manufacturing: Industry- 4. Research results demonstrate a good matching between the fractal dimension and calculated productivity of economy. However, GDP growth and economic complexity demonstrate the divergence for some countries, raising the question about the region’s sustainability in the strategic perspective despite the current growth of GDP. GDP growth in Baltic countries during post-crisis period contradict with economy complexity growth tendencies and research show it is not supported by productive economy growth.EU Central regions demonstrate resembling results. For the Scandinavian countries the GDP growth and fractal dimension change tendency confirm the strong productive economy base and sustainability of economies. In conclusion, fractal dimension of productive economy relations network combined with GDP produce more accurate picture of the strategic sustainability of the regions.
