Sources of Structural Change in the Washington Economy: An Input-Output Perspective
This paper analyzes changes in the structure of the Washington economy from 1963 to 1982. The empirical model utilizes data from the Washington state input-output tables for 1963 and for 1982. The model accounts for output change from a demand side perspective. Special attention is given to market diversification and the role of markets at the state, national, and international levels in explaining real growth in a given sector. Taking the service-producing sectors in Washington as an example, 48 percent of the real output change in the service sectors was associated with demand change from foreign and rest of the U.S. sources, while 52 percent of service output change was associated with Washington intermediate and final demand variables. The implication is that important elements of Washington service-producing sectors are driven by demand exogenous to Washington and should properly be considered a part of Washington's economic base.
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Volume (Year): 26 (1992)
Issue (Month): 2 (June)
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