IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v28y2014icp60-74.html
   My bibliography  Save this article

Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU

Author

Listed:
  • Garbellini, Nadia
  • Wirkierman, Ariel Luis

Abstract

Clusters and subsystems are two frequently used tools in inter-industry analysis, the former clarifying structure while the latter summarising circularity. Since industry blocks with crucial direct linkages will probably have strong indirect ties as well, localised intra-cluster feedback effects may play a prominent role in explaining total labour requirements. In this paper, we first quantify the labour redistribution taking place between industries and subsystems within and between clusters. Next, we extend the standard notion of vertically integrated labour to account for intra- and extra-cluster circularity, quantifying the extent to which overall productivity growth in every subsystem originates from intra-cluster industries. Both issues are illustrated for the consolidated European Union (EU27) economy between 2000 and 2007.

Suggested Citation

  • Garbellini, Nadia & Wirkierman, Ariel Luis, 2014. "Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU," Structural Change and Economic Dynamics, Elsevier, vol. 28(C), pages 60-74.
  • Handle: RePEc:eee:streco:v:28:y:2014:i:c:p:60-74 DOI: 10.1016/j.strueco.2014.01.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X14000034
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sandro Montresor & Giuseppe Vittucci Marzetti, 2011. "The deindustrialisation/tertiarisation hypothesis reconsidered: a subsystem application to the OECD7," Cambridge Journal of Economics, Oxford University Press, vol. 35(2), pages 401-421.
    2. 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.
    3. Hicks, Diana, 2011. "Structural change and industrial classification," Structural Change and Economic Dynamics, Elsevier, vol. 22(2), pages 93-105, June.
    4. Miyazawa, Kenichi, 1966. "Internal and External Matrix Multipliers in the Input-Output Model," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 7(1), pages 38-55, June.
    5. Michael Peneder, 2003. "Industry Classifications: Aim, Scope and Techniques," Journal of Industry, Competition and Trade, Springer, vol. 3(1), pages 109-129, March.
    6. Lamel, Joachim & Richter, Josef & Teufelsbauer, Werner, 1972. "Patterns of industrial structure and economic development : Triangulation of input-output tables of ECE countries," European Economic Review, Elsevier, vol. 3(1), pages 47-63.
    7. Alex R. Hoen, 2002. "Identifying Linkages with a Cluster-based Methodology," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 131-146, June.
    8. Leontief, Wassily, 1991. "The economy as a circular flow," Structural Change and Economic Dynamics, Elsevier, vol. 2(1), pages 181-212, June.
    9. Dalziel, Margaret, 2007. "A systems-based approach to industry classification," Research Policy, Elsevier, vol. 36(10), pages 1559-1574, December.
    10. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    11. Blin, Jean-Marie & Cohen, Claude, 1977. "Technological Similarity and Aggregation in Input-Output Systems: A Cluster-Analytic Approach," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 82-91, February.
    12. Pasinetti, Luigi L, 1988. "Growing Subsystems, Vertically Hyper-integrated Sectors and the Labour Theory of Value," Cambridge Journal of Economics, Oxford University Press, vol. 12(1), pages 125-134, March.
    13. Slater, Paul B, 1977. "The Determination of Groups of Functionally Integrated Industries in the United States Using a 1967 Interindustry Flow Table," Empirical Economics, Springer, vol. 2(1), pages 1-9.
    14. Sanjeev Bhojraj & Charles M. C. Lee & Derek K. Oler, 2003. "What's My Line? A Comparison of Industry Classification Schemes for Capital Market Research," Journal of Accounting Research, Wiley Blackwell, vol. 41(5), pages 745-774, December.
    15. Jacques Pelkmans, 2006. "European Industrial Policy," Bruges European Economic Policy Briefings 15, European Economic Studies Department, College of Europe.
    16. Heimler, Alberto, 1991. "Linkages and Vertical Integration in the Chinese Economy," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 261-267, May.
    17. Guccione, Antonio, 1986. "The Input-Output Measurement of Interindustry Linkages: A Comment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(4), pages 373-377, November.
    18. Maria Savona & André Lorentz, 2005. "Demand and Technology Determinants of Structural Change and Tertiarisation: An Input-Output Structural Decomposition Analysis for four OECD Countries," LEM Papers Series 2005/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    19. Abadir,Karim M. & Magnus,Jan R., 2005. "Matrix Algebra," Cambridge Books, Cambridge University Press, number 9780521537469, March.
    20. Guccione, Antonio & Gillen, William J., 1995. "Input-output reduction by Leontief's double inversion method: A note," Structural Change and Economic Dynamics, Elsevier, vol. 6(1), pages 133-137, March.
    21. repec:cup:cbooks:9780521822893 is not listed on IDEAS
    22. Jose Rueda-Cantuche & Thijs Ten Raa, 2009. "The Choice Of Model In The Construction Of Industry Coefficients Matrices," Economic Systems Research, Taylor & Francis Journals, vol. 21(4), pages 363-376.
    23. Miyazawa, Kenichi, 1971. "An Analysis of the Interdependence between Service and Goods-Producing Sectors," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 12(1), pages 10-21, June.
    24. Diamond, J, 1976. "Key Sectors in Some Underdeveloped Countries: A Comment," Kyklos, Wiley Blackwell, vol. 29(4), pages 762-764.
    25. Kerstin Enflo & Astrid Kander & Lennart Schön, 2008. "Identifying development blocks—a new methodology," Journal of Evolutionary Economics, Springer, vol. 18(1), pages 57-76, February.
    26. Jan Oosterhaven & Gerard Eding & Dirk Stelder, 2001. "Clusters, Linkages and Interregional Spillovers: Methodology and Policy Implications for the Two Dutch Mainports and the Rural North," Regional Studies, Taylor & Francis Journals, vol. 35(9), pages 809-822.
    27. Erik Dietzenbacher, 2005. "More on multipliers," Journal of Regional Science, Wiley Blackwell, vol. 45(2), pages 421-426.
    28. Arnold Tukker & Erik Dietzenbacher, 2013. "Global Multiregional Input-Output Frameworks: An Introduction And Outlook," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 1-19, March.
    29. Gupta, S & Steedman, Ian, 1971. "An Input-Output Study of Labour Productivity in the British Economy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 33(1), pages 21-34, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julián VILLAMIL S & Gustavo HERNÁNDEZ, 2015. "Encadenamientos, Clústeres y Flujos de Trabajo en Economía Colombiana," ARCHIVOS DE ECONOMÍA 012649, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    2. Taalbi, Josef, 2015. "Development Blocks in Innovation Networks. The Swedish Manufacturing Industry, 1970-2007," MPRA Paper 64549, University Library of Munich, Germany, revised 23 May 2015.
    3. Julián VILLAMIL SANCHEZ, 2016. "Cálculo de la Productividad Sectorial en Colombia con Herramientas Insumo-Producto," ARCHIVOS DE ECONOMÍA 014585, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    4. Julián VILLAMIL S & Gustavo HERNANDEZ, 2015. "Encadenamientos, Clústeres y Flujos de Trabajo en la Economía Colombiana," ARCHIVOS DE ECONOMÍA 012647, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    5. repec:spr:joevec:v:27:y:2017:i:3:d:10.1007_s00191-017-0491-y is not listed on IDEAS

    More about this item

    Keywords

    Industry clustering; Subsystem; Vertically integrated sector; Total labour productivity;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:28:y:2014:i:c:p:60-74. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.