Chiapas Economic Complexity

Mexico is the second largest spanish speaking country in regards to the amount of area the country has under its control and the largest group people who speak the Spanish language. The country is composed of a federal republic with thirty-one states and one federal district. The country has a developing market economy with strong links to the United States of America, long a major trading partner, although the United States of American president has pledged to change the terms of the relationship in coming years. Out of the thirty-one states, Chiapas has the most fertile land and is one of the most indigenously populated with its people are very connected with their indigenous ancestral origins. Chiapas is richest state in regards to natural
“If a country is able to make many products (high diversity) which few countries on average are able to make (low ubiquity), we assume it has a broad range of productive capacities” (WHY IS CHIAPAS POOR?, 2016). For example, if one were to measure the economic complexity of Chiapas based on its exports, it has the third least complex state in Mexico. This means that Chiapas has a productive ecosystem with very little diversity and scant knowledge, that is barely adequate to export a small set of primary goods, such as coffee, bananas, and rubber which are its primary exports, because many other regions, like Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, are capable of producing these products. Much of the commodity produced in Chiapas can be replicated by other states in Mexico meaning that the state cannot present the product to the market at a high value or else the buyer will go with a more affordable seller restricting the state from placing the sale price high enough to make a profit. Since Chiapas is one of the states that has the least economic complexities, their income level tend to grow more slowly or stay fixed than those where the relation between complexity and income is stronger. Chiapas is the least diversified state, and the few things it’s able to do with comparative advantage, meaning the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity, versus Mexico are things that many other states can also do on average. Having a low economic complexity places the state at a great disadvantage when looking at the