Since some products, such as computers and jet engines, can only be produced in complex societies, but commodities such as shirts and cereals can be produced almost everywhere economic complexity is closely linked to the diversity of useful knowledge used. In other words, economic complexity is defined as the extent to which countries can produce and export knowledge goods through the knowledge formed in those countries ( Lall et al., 2006). To this end, it is necessary for individual societies to expand their activities in a network of active members, thereby enabling them to share their knowledge and common knowledge with the modern world. The criterion of the modernity of individual societies must be understood in terms of their ability to use collective and shared knowledge. Further, Hidalgo (2015) stated, It is not only the extent to which every society enjoys production knowledge at the present time, but the extent to which the modern society at large is more committed to the use of aggregated knowledge. As a result, the level of complexity of countries in commodity production can be determined by the index of economic complexity ( Hidalgo et al., 2007). Simple and publicly used goods do not require much knowledge or, if they have, are produced by countries of low complexity, so they are less competitive internationally. They examined the networks of communication between products, or "product space” and the results showed that products with higher complexity rank were more interconnected in the middle region of the product space, while products with lower complexity rank were located in less interconnected areas. The economic complexity was first discussed by Hidalgo, klinger, Barabassi and Hausmann (2007). Accordingly, the more diverse the country's export basket and the more sophisticated it is, the more powerful it is in terms of economic interactions at the international level and the more economically viable it is. However, the economic complexity of countries' production is not limited to the ability to apply knowledge to the production process rather it encompasses much broader dimensions ( Utkovsklbi et al., 2018). By economic complexity, the emphasis is on the intense application of technical knowledge in product diversification to encompass it in the domestic consumer markets on the one hand and foreign markets on the other. The concept of economic complexity in a country refers to the production of domestically-based knowledge products as well as the diversification of export goods by the country. In general, the results of this study recommend that in order to achieve a proper share of export revenues in economic growth, the Middle East countries need to strengthen the foreign trade economy through trade liberalization and experience the impact of imports of medium and final capital goods, gross capital formation, and foreign direct investment in the index of economic complexity. Immediate reaction test results show that, over a period of 10 years, economic complexity increases with positive shock from variables of trade freedom, foreign direct investment and gross fixed capital formation, but in the long run, the effect of imports of intermediate and capital goods is initially increasing and, after a short period, has a positive downward effect. The purpose of this study was to investigate the impact of trade liberalization on the economic complexity as a strategy adopted by the Middle East developing economies during the period 2002–2017 using the panel vector auto regression model (PVAR). That is why most of the countries relying on natural income sources have not been able to improve their indicators of economic complexity and high technology utilization. Economic growth and development requires greater access to global markets, while developing countries face many challenges in terms of trade liberalization.
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