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An Investigation of Industry Associations, Association Loops and Economic Complexity: Application to Canada and the United States

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  • Chokri Dridi
  • Geoffrey Hewings

Abstract

Various methods were proposed to understand the linkages in an input-output system; however, many have focused only on the identification of key sectors in the economy. An alternative approach, identifying analytically the importance of elements and combinations of elements was proposed as a field of influence theory (Sonis et al. , 1996). The purpose of this paper is to offer a complementary approach to the field of influence and the so-called 'Matrioshka principal' (Sonis & Hewings, 1990); the objectives are to identify simple row-column associations (i.e. statistical dependence), seek hierarchical associations between supply and demand in input-output systems and the decomposition of economic complexity into finite stages. For the identification of simple dependencies between rows and columns, we use a log-linear regression and for hierarchical associations and the identification of complexity stages, we use the data analysis technique known as dual scaling. Results of both approaches will be applied to input-output tables of the US and Canada.

Suggested Citation

  • Chokri Dridi & Geoffrey Hewings, 2002. "An Investigation of Industry Associations, Association Loops and Economic Complexity: Application to Canada and the United States," Economic Systems Research, Taylor & Francis Journals, vol. 14(3), pages 275-296.
    • Handle: RePEc:taf:ecsysr:v:14:y:2002:i:3:p:275-296
    DOI: 10.1080/0953531022000002512
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    1. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1995. "Linkages, key sectors and structural change: some new perspectives," MPRA Paper 54754, University Library of Munich, Germany.
    2. 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.
    3. Cella, Guido, 1984. "The Input-Output Measurement of Interindustry Linkages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(1), pages 73-84, February.
    4. Michael Sonis & J. D. Hewings & Jiemin Guo, 2000. "A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 401-423.
    5. Cella, Guido, 1986. "The Input-Output Measurement of Interindustry Linkages: A Reply," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(4), pages 379-384, November.
    6. Clements, Benedict J., 1990. "On the decomposition and normalization of interindustry linkages," Economics Letters, Elsevier, vol. 33(4), pages 337-340, August.
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    Cited by:

    1. Ezzahid, Elhadj & Chatri, Abdellatif, 2015. "Imports contents, value added generation and structural change in morocco: input output analysis," MPRA Paper 63512, University Library of Munich, Germany.
    2. Ana Muñiz & Antonio Raya & Carmen Carvajal, 2010. "Spanish and European innovation diffusion: a structural hole approach in the input–output field," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(1), pages 147-165, February.
    3. Liis LILL, 2008. "Assessing Economic Complexity in some OECD countries with Input-Output Based Measures," EcoMod2008 23800082, EcoMod.
    4. Debdas Bandyopadhyay & Prasanta Mandal, 2006. "Statistical Analysis of Complexity in Productive Structure of Indian Economy: 1984–1996," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 4(2), pages 84-102, July.
    5. João Ferreira do Amaral & João Carlos Lopes & João Dias, 2011. "External dependency, value added generation and structural change: an inter-industry approach," Notas Económicas, Faculty of Economics, University of Coimbra, issue 33, pages 06-19, June.
    6. 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.
    7. García Muñiz, Ana Salomé, 2013. "Input–output research in structural equivalence: Extracting paths and similarities," Economic Modelling, Elsevier, vol. 31(C), pages 796-803.

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    More about this item

    Keywords

    Dual Scaling; Industry Associations; Loops; Economic Complexity;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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