Using intercountry input-output tables and disaggregated employment data, we decompose labor productivity growth between 1975 and 1985 in six Western European countries into partial effects of six determinants including changing international trade and changing final demand. To this end, new multiplicative decomposition formulas are derived and implemented. In a similar way, we study labor productivity changes in vertically integrated industries. The effects of structural change on convergence are investigated also. We see this paper as an attempt to merge the convergence literature with earlier single-country productivity-change decompositions using input-output data. Copyright 2000 Blackwell Publishers
This paper considers the problem of deflating an input‐output table from the viewpoint of the user. In many practical cases certain margins of this table are readily available in constant prices, whereas the entire table is not. This reduces the problem to estimating the matrix of sectoral intermediate deliveries in constant prices. The traditional approach for this purpose is based on the double deflation method. Since double deflation is sensitive to aggregation, however, it typically does not provide correct answers. Therefore, a heuristic approach is proposed as an alternative. It is based on the biproportional projection method. An empirical evaluation indicates that the heuristic approach clearly performs better.
Although many methods for studying linkages between economic sectors exist, most methods only analyse the linkages between a specific sector and all other sectors, or the effects of all sectors on the economy as a whole. Cluster analysis may be helpful to analyse which sectors are strongly connected to each other, when no specific sector is given in advance. The present article reviews how cluster analysis contributes to the analysis of intersectoral linkages. Furthermore, it describes several possible identification methods of these clusters. After selecting the best method, the article provides an index that can be used to compute the degree of similarity between clusters in different regions, countries, or time periods.Clusters, Linkages, Similarity,
This paper refines, develops and applies input-output decomposition analysis. First, by putting it in an unique intercountry perspective, second, by concentrating on explaining income growth, and, third, by systematically separating the effects of trade pattern changes from the effects of technology and preference changes. The resulting matrix decomposition formula distinguishes six components, and is applied to a set of EU-intercountry input-output tables in constant prices, with 25 sectors and 6 EU-countries, for 1975 and 1985. Macro economic demand growth is found to be most important component at the aggregate country level. The other five components relate to the impacts of coefficient changes. Their sizes are smaller, but at the sector level they are quite large and different between individual sectors and countries. It is concluded that the analysis uncovers a much broader potential impact for national and EU industrial policy measures than the usual less refined decomposition analyses.
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