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Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU

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  • Garbellini, Nadia
  • Wirkierman, Ariel Luis

Abstract

Clusters and subsystems are two frequently used tools in inter-industry analysis, the former clarifying structure while the latter summarising circularity. Since industry blocks with crucial direct linkages will probably have strong indirect ties as well, localised intra-cluster feedback effects may play a prominent role in explaining total labour requirements. In this paper, we first quantify the labour redistribution taking place between industries and subsystems within and between clusters. Next, we extend the standard notion of vertically integrated labour to account for intra- and extra-cluster circularity, quantifying the extent to which overall productivity growth in every subsystem originates from intra-cluster industries. Both issues are illustrated for the consolidated European Union (EU27) economy between 2000 and 2007.

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  • Garbellini, Nadia & Wirkierman, Ariel Luis, 2014. "Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU," Structural Change and Economic Dynamics, Elsevier, vol. 28(C), pages 60-74.
    • Handle: RePEc:eee:streco:v:28:y:2014:i:c:p:60-74
    DOI: 10.1016/j.strueco.2014.01.002
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    Cited by:

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    2. Taalbi, Josef, 2015. "Development Blocks in Innovation Networks. The Swedish Manufacturing Industry, 1970-2007," MPRA Paper 64549, University Library of Munich, Germany, revised 23 May 2015.
    3. Lorenzo Cresti & Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2023. "Italy and the Trap of GVC Downgrading: Labour Dependence in the European Geography of Production," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(3), pages 869-906, November.
    4. Julián VILLAMIL S & Gustavo HERNANDEZ, 2015. "Encadenamientos, Clústeres y Flujos de Trabajo en la Economía Colombiana," Archivos de Economía 12647, Departamento Nacional de Planeación.
    5. Josef Taalbi, 2017. "Development blocks in innovation networks," Journal of Evolutionary Economics, Springer, vol. 27(3), pages 461-501, July.
    6. Wirkierman, Ariel Luis, 2023. "Structural economic dynamics in actual industrial economies," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 245-262.
    7. Julian Andres VILLAMIL & Luis Felipe QUINTERO & Gustavo Adolfo HERNANDEZ-DIAZ, 2019. "La estructura sectorial de Colombia: Un análisis insumo-producto," Archivos de Economía 17505, Departamento Nacional de Planeación.
    8. Raffaele Giammetti & Luca Papi & Désirée Teobaldelli & Davide Ticchi, 2020. "The Italian value chain in the pandemic: the input–output impact of Covid-19 lockdown," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 483-497, September.
    9. Julian Andres VILLAMIL & Luis Felipe QUINTERO & Gustavo Adolfo HERNANDEZ-DIAZ, 2019. "Generación de empleos y clústeres," Archivos de Economía 17506, Departamento Nacional de Planeación.
    10. Julián VILLAMIL SANCHEZ, 2016. "Cálculo de la Productividad Sectorial en Colombia con Herramientas Insumo-Producto," Archivos de Economía 14585, Departamento Nacional de Planeación.
    11. Lorenzo Cresti & Maria Enrica Virgillito, 2023. "Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs," LEM Papers Series 2023/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    More about this item

    Keywords

    Industry clustering; Subsystem; Vertically integrated sector; Total labour productivity;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian

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