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Sector Potentiality and Sources of Growth. An Analysis of Structural Changes in Italy in the Nineties

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  • Andrea BONFIGLIO

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    Abstract

    The objective of this article is to analyse structural changes which occurred in Italy in the period 1992-2000. The analysis is carried out within the I-O framework by the use of multipliers, I-O elasticities, structural decomposition and causative approaches. These tools are used to assess over time the degree of sector interrelationships, the potentiality of sectors in fostering economic growth, the sources of change in the economy and contribution of sectors to growth. In particular, the structural decomposition approach is based on the use of a revised version of RAS finalised to isolate productivity and substitution effects affecting technology changes. From the analysis, there emerges that, in the nineties, the process of development has led to reinforcement of sectors more related to service supply and to an increasing reduction of the importance of agriculture and manufacturing sectors. Moreover, Italy has been interested by structural changes mainly due to the variation of the level of final demand, in particular of consumption, rather than technological changes. Finally, the Italian economy, in line with the general tendency of other industrialised countries, has been involved by the process of rising diffusion and importance of computer and communication technologies throughout the whole economy.

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    File URL: http://docs.dises.univpm.it/web/quaderni/pdf/237.pdf
    File Function: First version, 2005
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    Bibliographic Info

    Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 237.

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    Length: 38
    Date of creation: Jun 2005
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    Handle: RePEc:anc:wpaper:237

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    Keywords: I-O elasticities; decomposition analysis; input-output frameworks; left causative matrix; multipliers; structural changes;

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    1. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    2. Sikhanwita Roy & Tuhin Das & Debesh Chakraborty, 2002. "A Study on the Indian Information Sector: An Experiment with Input-Output Techniques," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 107-129.
    3. Linden, Jan A. van der & Dietzenbacher, Erik, 1995. "The determinants of structural change in the European Union : a new application of RAS," Research Report 95D36, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    4. Shigemi Kagawa & Hajime Inamura, 2004. "A Spatial Structural Decomposition Analysis of Chinese and Japanese Energy Demand: 1985-1990," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 279-299.
    5. Aying Liu & David Saal, 2001. "Structural Change in Apartheid-era South Africa: 1975-93," Economic Systems Research, Taylor & Francis Journals, vol. 13(3), pages 235-257.
    6. B. Andreosso-O'Callaghan & Guoqiang Yue, 2002. "Sources of output change in China: 1987-1997: application of a structural decomposition analysis," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2227-2237.
    7. Claudia Ciobanu & Konstadinos Mattas & Dimitris Psaltopoulos, 2004. "Structural Changes in Less Developed Areas: An Input- Output Framework," Regional Studies, Taylor & Francis Journals, vol. 38(6), pages 603-614.
    8. Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
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