The latent structure of diversification from relatedness and network embeddings

Entity clusters in the embedding space, comparing firms and countries.

Abstract

Graph embeddings complement relatedness measures in models of economic diversification. Analyses of international trade and public procurement show that their predictive contribution varies by scale and target: relatedness is especially informative about entry, while embeddings add information about specialization magnitude.

Publication
PLOS ONE, 21(10), e0344958

Figure: Entity clusters in the embedding space, comparing firms and countries. Sturm, Candia, Damásio and Pinheiro (2026), Figure 2. CC BY 4.0. Original figure.

Cristian Candia
Cristian Candia
Associate Professor, Data Science Institute, School of Engineering, Universidad del Desarrollo, Chile. Director of CRiSS-LAB.

Cristian Candia is a computational social scientist studying human and collective behavior with large-scale data, network science, experiments, and AI.

Flavio Pinheiro
Flavio Pinheiro
NOVA IMS, Universidade Nova de Lisboa