Does economic complexity lead to global carbon emissions convergence?

This study examines how economic complexity, along with human capital, total factor productivity, foreign direct investment, and trade openness, leads to per capita CO emissions (PCOEs) convergence at club level in the case of 42 countries for the period of 1998-2019. To do so, first, this study implements the Phillips and Sul novel club convergence approach, and results show the existence of three clubs implying the distinct transition paths. Secondly, to examine how the economic complexity affects the PCOEs in each club, this study applies a panel data model.