PMC

A zoom in on the positioning of Hong Kong, Ireland, Singapore and South Korea in the capability space in 2010. We also show the capabilities and link the countries to the capabilities they have. For simplicity, we exclude the capabilities that are absent in all four countries.

In our theoretical framework, capabilities are crucial in explaining the economic performances of countries. As can be observed on the left, conceptually, we can visualize capabilities as an intermediate layer in a tripartite country-capability-product network. Capabilities are non-measurable entities, and information on them can be inferred by building an empirical country-product network through international trade data. As can be seen on the right, such a bipartite network can be interpreted as the projection of the tripartite network. In the country-product network, a link is established if and only if the country has a revealed comparative advantage in exporting the product [,].

Cognitive capabilities measurement model: Factor loadings and inter-factor correlation.

Distribution of capabilities and functionings according to economic capital (parental financial condition). (a): Distribution of capabilities; (b): Distribution of functings.