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R&D and wholesale trade are critical to the economy: Identifying dominant sectors from economic networks

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Abstract

Using a network approach we empirically identify the most critical sectors for 49 different economies. Wholesale trade is dominant for over half the countries, but increasingly R&D activities are taking on an equivalent importance. Recognizing R&D as a critical sector as countries develop urges caution against disinvesting in this sector.

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  • Dungey, Mardi & Volkov, Vladimir, 2017. "R&D and wholesale trade are critical to the economy: Identifying dominant sectors from economic networks," Working Papers 2017-12, University of Tasmania, Tasmanian School of Business and Economics.
    • Handle: RePEc:tas:wpaper:23733
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    Cited by:

    1. Pesaran, M. Hashem & Yang, Cynthia Fan, 2020. "Econometric analysis of production networks with dominant units," Journal of Econometrics, Elsevier, vol. 219(2), pages 507-541.
    2. Hamill, Philip A. & Hutchinson, Mark & Nguyen, Quang Minh Nhi & Mulcahy, Mark, 2018. "FDA approval announcements: Attention-grabbing or event-day misspecification?," Economics Letters, Elsevier, vol. 170(C), pages 171-174.
    3. Pesaran, M. Hashem & Yang, Cynthia Fan, 2021. "Estimation and inference in spatial models with dominant units," Journal of Econometrics, Elsevier, vol. 221(2), pages 591-615.
    4. George Kapetanios & M. Hashem Pesaran & Simon Reese, 2018. "A Residual-based Threshold Method for Detection of Units that are Too Big to Fail in Large Factor Models," CESifo Working Paper Series 7401, CESifo.
    5. Jorge Miranda Pinto, 2021. "Production Network Structure, Service Share, and Aggregate Volatility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 146-173, January.

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    More about this item

    Keywords

    Networks; input-output tables; sectors; research and development;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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