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A new method of identifying key industries: a principal component analysis

Author

Listed:
  • Lefteris Tsoulfidis

    (University of Macedonia)

  • Ioannis Athanasiadis

    (University of Macedonia)

Abstract

This article using the principal components analysis identifies key industries and groups them into particular clusters. The data come from the US benchmark input–output tables of the years 2002, 2007, 2012 and the most recently published input–output table of the year 2019. We observe some intertemporal switches of industries both between and within the top clusters. The findings further suggest that structural change is a slow-moving process and it takes time for some industries to move from one cluster to the other. This information may be proved important in the designation of effective economic policies by targeting key industries and also for the stability properties of the economic system.

Suggested Citation

  • Lefteris Tsoulfidis & Ioannis Athanasiadis, 2022. "A new method of identifying key industries: a principal component analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-23, December.
    • Handle: RePEc:spr:jecstr:v:11:y:2022:i:1:d:10.1186_s40008-022-00261-z
    DOI: 10.1186/s40008-022-00261-z
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    References listed on IDEAS

    as
    1. Bienenfeld, Mel, 1988. "Regularity in Price Changes as an Effect of Changes in Distribution," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 12(2), pages 247-255, June.
    2. Theodore Mariolis & Lefteris Tsoulfidis, 2018. "Less Is More: Capital Theory And Almost Irregular-Uncontrollable Actual Economies," Contributions to Political Economy, Cambridge Political Economy Society, vol. 37(1), pages 65-88.
    3. Paul A. Samuelson, 1962. "Parable and Realism in Capital Theory: The Surrogate Production Function," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(3), pages 193-206.
    4. Fotoula Iliadi & Theodore Mariolis & George Soklis & Lefteris Tsoulfidis, 2014. "Bienenfeld's Approximation of Production Prices and Eigenvalue Distribution: Further Evidence from Five European Economies," Contributions to Political Economy, Cambridge Political Economy Society, vol. 33(1), pages 35-54.
    5. Hamparsum Bozdogan, 1987. "Model selection and Akaike's Information Criterion (AIC): The general theory and its analytical extensions," Psychometrika, Springer;The Psychometric Society, vol. 52(3), pages 345-370, September.
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    Cited by:

    1. Tsoulfidis, Lefteris, 2022. "Effective Rank and Dimensionality Reduction: from Complex Disaggregation Back to a Simple World," Centro Sraffa Working Papers CSWP57, Centro di Ricerche e Documentazione "Piero Sraffa".
    2. Floyd Mwansa, 2023. "Measuring Distribution of Wealth in Zambia Using Census Micro Data: An Application of Principal Component Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 126-140, May.

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    More about this item

    Keywords

    Principal components; Structural change; Dimensionality reduction; Clusters; Networks;
    All these keywords.

    JEL classification:

    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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