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A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse

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  • Michael Sonis
  • J. D. Hewings
  • Jiemin Guo

Abstract

This paper provides a theoretical framework for the Rasmussen-Hirschman key sector analysis based on a minimum information approach. This approach introduces a separation of information about regional economic structure into two parts. In the first part, knowledge about economic structure, extracted on the basis of minimum information included in the row and column multipliers, is extracted from the Leontief inverse matrix. The second part presents the specifics of synergetic interactions between different sectors of the economy. A corresponding intensity matrix represents the strength of the fields of influence of simultaneous multiple changes. From this formulation, a minimum information decomposition of the Leontief inverse is shown to exist and applied to Chinese input-output tables for 1987 and 1990.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 12 (2000)
Issue (Month): 3 ()
Pages: 401-423

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Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:401-423

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Related research

Keywords: Key Sectors; Minimum Information; Intensity Matrix; China;

References

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  1. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December.
  2. Round, Jeffrey I, 1985. "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 383-99, June.
  3. Sonis, Michael & Hewings, Geoffrey J.D., 1993. "Hierarchies of Regional Sub-Structures and Their Multipliers within Input-output Systems Miyazawa Revisited," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 34(1), pages 33-44, June.
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Citations

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Cited by:
  1. Pedro G. Carvalho, 2001. "Keystone sector methodology:network analysis comparative study," ERSA conference papers ersa01p128, European Regional Science Association.
  2. Ho Gim & Koonchan Kim, 2009. "A study on the building of a new “output–output model” and its usefulness: based on a comparative analysis of the input–output model," The Annals of Regional Science, Springer, vol. 43(3), pages 807-829, September.
  3. Fidel Aroche-Reyes, 2002. "Structural Transformations and Important Coefficients in the North American Economies," Economic Systems Research, Taylor & Francis Journals, vol. 14(3), pages 257-273.
  4. Lisheng Zeng, 2001. "A Property of the Leontief Inverse and its Applications to Comparative Static Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 13(3), pages 299-315.
  5. Pedro Guedes Carvalho, 2002. "Keystone sector methodology:a network comparative study," Urban/Regional 0211002, EconWPA.
  6. Gashawbeza Bekele & Randall Jackson, 2006. "Theoretical Perspectives on Industry Clusters," Working Papers 200605, Regional Research Institute, West Virginia University.
  7. Julio Sanchez-Choliz & Rosa Duarte, 2003. "Production Chains and Linkage Indicators," Economic Systems Research, Taylor & Francis Journals, vol. 15(4), pages 481-494.
  8. M. Carmen Lima & M. Alejandro Cardenete & José Vallés, 2003. "Un análisis estructural de la economía andaluza a través de matrices de contabilidad social: 1990-19991," Economic Working Papers at Centro de Estudios Andaluces E2003/20, Centro de Estudios Andaluces.
  9. Dr Guy West & Assoc Prof Richard Brown, 2003. "Structural Change, Intersectoral Linkages And Hollowing-Out in the Taiwanese Economy, 1976-1994," Discussion Papers Series 327, School of Economics, University of Queensland, Australia.
  10. Junning Cai & Pingsun Leung, 2004. "Linkage Measures: a Revisit and a Suggested Alternative," Economic Systems Research, Taylor & Francis Journals, vol. 16(1), pages 63-83.
  11. Alex Hoen, 2002. "Identifying Linkages with a Cluster-based Methodology," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 131-146.
  12. Sonis, Michael, 2002. "Complexity and complication in dynamics of linear spatial socio-economies, a synopsis," ERSA conference papers ersa02p044, European Regional Science Association.
  13. Vito Albino & Erik Dietzenbacher & Silvana Kuhtz, 2003. "Analysing Materials and Energy Flows in an Industrial District using an Enterprise Input-Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 15(4), pages 457-480.
  14. Chokri Dridi & Geoffrey J.D. Hewings, 2002. "An Investigation of Industry Associations, Association Loops, and Economic Complexity: Application to Canada and the United States," Urban/Regional 0210001, EconWPA, revised 23 Feb 2005.
  15. Michael Sonis & Maxim Shoshany & Naftali Goldschlager, 2005. "Matrix Land Use Analysis - a Case Study of Landscape Changes in Israeli Carmel Area," ERSA conference papers ersa05p19, European Regional Science Association.
  16. Jaime Bonet, . "Regional Structural Changes in Colombia: An Input-Output Approach," Borradores de Economia 341, Banco de la Republica de Colombia.
  17. García Muñiz, Ana Salomé, 2013. "Input–output research in structural equivalence: Extracting paths and similarities," Economic Modelling, Elsevier, vol. 31(C), pages 796-803.
  18. Malcolm Beynon & Max Munday, 2008. "Stochastic key sector analysis: an application to a regional input–output framework," The Annals of Regional Science, Springer, vol. 42(4), pages 863-877, December.

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