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Complexity as Interdependence in Input–Output Systems

Author

Listed:
  • João Ferreira do Amaral
  • João Dias
  • João Carlos Lopes

Abstract

In this paper we propose a new index of connectedness for an input–output system which is considered useful for quantifying economic complexity as the level of interdependence between the component parts (sectors) of a national (or regional) economy. This index is empirically applied in a tentative answer to the following questions: Should we expect to find a natural shift towards greater complexity as an economy grows and develops? Is a larger economy necessarily more complex than a smaller one? The interindustry tables of several OECD countries provide the material support for making international and historical comparisons of economic complexity as a level of interrelatedness.

Suggested Citation

  • João Ferreira do Amaral & João Dias & João Carlos Lopes, 2007. "Complexity as Interdependence in Input–Output Systems," Environment and Planning A, , vol. 39(7), pages 1770-1782, July.
    • Handle: RePEc:sae:envira:v:39:y:2007:i:7:p:1770-1782
    DOI: 10.1068/a38214
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    References listed on IDEAS

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    1. Roland Lantner & Frederic Carluer, 2004. "Spatial dominance: a new approach to the estimation of interconnectedness in regional input-output tables," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(3), pages 451-467, September.
    2. Alan T. Peacock & Douglas Dosser, 1957. "Input-Output Analysis in an Underdeveloped Country: A Case Study," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(1), pages 21-24.
    3. Dietzenbacher, Erik, 1992. "The measurement of interindustry linkages : Key sectors in the Netherlands," Economic Modelling, Elsevier, vol. 9(4), pages 419-437, October.
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    Cited by:

    1. Yicheol Han & Stephan J Goetz, 2019. "Measuring network rewiring over time," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-13, July.
    2. Joao Carlos Lopes, 2012. "High Employment Generating Sectors in Portugal: an Interindustry Approach," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 2(2), pages 125-125.
    3. Deborah Roberts & David Newlands, 2010. "The Economic Integration of New Sectors in Rural Areas: A Case Study of the Shetland Economy," Environment and Planning A, , vol. 42(11), pages 2687-2704, November.
    4. Llop, Maria & Ponce-Alifonso, Xavier, 2015. "Identifying the role of final consumption in structural path analysis: An application to water uses," Ecological Economics, Elsevier, vol. 109(C), pages 203-210.
    5. Martha Alatriste-Contreras, 2015. "The relationship between the key sectors in the european union economy and the intra-European Union trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-24, December.
    6. João Do Amaral & João Dias & João Lopes, 2012. "A new kind of production and value-added multiplier for assessing the scale and structure effects of demand shocks in input–output frameworks," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 103-115, August.
    7. João C. Lopes & João Dias & João F. Amaral, 2012. "Assessing economic complexity as interindustry connectedness in nine OECD countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(6), pages 811-827, January.
    8. João Carlos Lopes, 2011. "High Employment Generating Industries in Portugal. An Input-Output Approach," Working Papers Department of Economics 2011/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

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