Multi-path Combination Analysis of Economic Development: Based on the Fuzzy Set Comparison of Multinational Data

In the context of the slowdown in global economic development, it is imperative to find a new path to promote economic development sustainedly. Previous studies have mostly discussed the net effect of a single factor on the economy, but it is more important to explore the combined effect of the combination of factors than that. The study uses fuzzy set qualitative comparison analysis (fsQCA) to test the multi-configuration relationship among innovative capability of technology, local market size, specialization of international division of labor and institutional context in 103 countries. The results prove that the scale of local market or innovative ability of technology can promote the development of developing countries’ economy. Small countries with developed economies mostly develop their economy relying on science and technological innovation or institutional environment. Only large countries with strong comprehensive national strength and major economically developed countries often have both advantages of local market size and the innovative capability of technology. Based on the multi-path combination analysis, this article puts forward several suggestions for optimizing the path selection of economic development.