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European Technology, Trade and Income Changes for 1975-85: An Intercountry Input-Output Decomposition

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  • Jan Oosterhaven
  • Jan Van Der Linden

Abstract

This paper refines, develops and applies input-output (IO) decomposition analysis: by providing it with a unique intercountry perspective, by concentrating on explaining income growth, and by systematically separating the effects of trade structure changes from the effects of technology and preference changes. The resulting matrix formula distinguishes six components and is applied to a set of European Community (EC) intercountry IO tables for 1975 and 1985 with 25 sectors and eight EC countries. Because GDP growth is analyzed in nominal terms, macro-economic demand growth is found to be the most important component. The other five components relate to the effects of coefficient changes. Their sizes are smaller, but significant and widely different between sectors and countries, which shows that there is clear potential for effective sector policies.

Suggested Citation

  • Jan Oosterhaven & Jan Van Der Linden, 1997. "European Technology, Trade and Income Changes for 1975-85: An Intercountry Input-Output Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 9(4), pages 393-412.
  • Handle: RePEc:taf:ecsysr:v:9:y:1997:i:4:p:393-412
    DOI: 10.1080/09535319700000033
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    Cited by:

    1. Overman, Henry G. & Puga, Diego & Turner, Matthew A., 2008. "Decomposing the growth in residential land in the United States," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 487-497, September.
    2. Kota Mori & Joe Chen & Yun Jeong Choi & Yasuyuki Sawada & Saki Sugano, 2012. "A note on the decomposition technique of economic indices," Economics Bulletin, AccessEcon, vol. 32(4), pages 2710-2715.
    3. Ana-Isabel Guerra & Ferran Sancho, 2013. "A Linear Price Model With Extractions," EcoMod2013 5113, EcoMod.
    4. Hu, Baiding & McAleer, Michael, 2004. "Input–output structure and growth in China," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 64(1), pages 193-202.
    5. George Halkos & Kyriaki Tsilika, 2015. "A Dynamic Interface for Trade Pattern Formation in Multi-regional Multi-sectoral Input-output Modeling," Computational Economics, Springer;Society for Computational Economics, vol. 46(4), pages 671-681, December.
    6. Inácio Araúgo & Randall Jackson & Amir B. Ferreira Neto & Fernando Perobelli, 2018. "Environmental Costs of European Union Membership: A Structural Decomposition Analysis," Working Papers Working Paper 2018-04, Regional Research Institute, West Virginia University.
    7. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.
    8. Huang, Yun-Hsun & Wu, Jung-Hua, 2013. "Analyzing the driving forces behind CO2 emissions and reduction strategies for energy-intensive sectors in Taiwan, 1996–2006," Energy, Elsevier, vol. 57(C), pages 402-411.
    9. Liu, Qiaoling & Wang, Qi, 2015. "Reexamine SO2 emissions embodied in China's exports using multiregional input–output analysis," Ecological Economics, Elsevier, vol. 113(C), pages 39-50.
    10. Jose Pavía & Bernardi Cabrer & Luis Vila, 2006. "Interregional Trade Linkages and the Commercial Role: The Spanish Case," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(1), pages 91-103, February.
    11. Joe Chen & Yun Jeong Choi & Kohta Mori & Yasuyuki Sawada & Saki Sugano, 2009. "The Jump, Inertia, and Juvenization of Suicides in Japan," CIRJE F-Series CIRJE-F-628, CIRJE, Faculty of Economics, University of Tokyo.
    12. Kagawa, Shigemi & Nansai, Keisuke & Kudoh, Yuki, 2009. "Does product lifetime extension increase our income at the expense of energy consumption?," Energy Economics, Elsevier, vol. 31(2), pages 197-210.
    13. Wu, Jung-Hua & Chen, Yen-Yin & Huang, Yun-Hsun, 2007. "Trade pattern change impact on industrial CO2 emissions in Taiwan," Energy Policy, Elsevier, vol. 35(11), pages 5436-5446, November.

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