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The main purpose of this study is to investigate the relationship between economic complexity and competitiveness using panel data in a sample of 39 emerging countries from 2002 to 2018. The results of the causality test of Dmitresco and Horlin Granger (2012) show a two-way cause between economic complexity and competitiveness. This indicates that the higher complexity of the economy helps countries to improve their average level of competitiveness, and vice versa. At the same time, the results of the model estimation using the system generalized method of moments (GMM) estimators confirm that economic complexity is a determining factor in the competitiveness of countries. This shows that economic integration with the creation of new sectors and new products creates significant opportunities for new jobs, which in turn leads to greater competition and a more dynamic environment. At the same time, the impact of variables on GDP growth, good governance, real exchange rates, human capital, and R&D costs on the competition of countries is also positive. Therefore, in order to increase competitiveness and develop a knowledge-based economy, emerging countries need to consider policies to increase economic complexity along with other factors affecting competitiveness.

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The theory of economic complexity has recently been developed by two groups of scientists at Harvard University and MIT. According to this theory, the productive capabilities accumulated in each country determine its structural changes and economic growth. The Economic Complexity Index is calculated annually for more than 120 countries to measure the volume of accumulated capabilities. In this research, for the first time, an index of economic complexity for the provinces of the country during the period 2000-2018 has been calculated. The results show that (a) the degree of economic complexity of all provinces of the country during the period under review has been negative. (B) Kohgiluyeh and Boyer-Ahmad provinces, Khuzestan, Ilam and Bushehr in most years had the lowest degree of complexity and in contrast to Qom, Tehran, Isfahan, Qazvin, Central and East Azerbaijan provinces in most years had the highest degree of economic complexity among the provinces. (C) Implementation of provincial and national industrial and commercial policies in order to develop the field of activities for manufacturing other non-metallic mineral products, manufacturing products from rubber and plastic, manufacturing metal fabric products other than machinery and equipment, manufacturing medical instruments, optical instruments, Precision instruments and watches, manufacture of machinery and equipment not elsewhere classified, manufacture of machinery and electrical appliances not elsewhere classified, manufacture of basic metals and manufacture of motor vehicles, trailers and semi-trailers maybe Help effectively increase the degree of economic complexity of a wide range of provinces.