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Development blocks and the second industrial revolution – Sweden 1900-1970

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Abstract

The paper explores development blocks around electrification at a 14 sector level in the Swedish economy 1900-1974. We suggest that long-run cointegration relations in combination with mutually Granger-causing short-run effects form a development block. One block centred on electricity that comprises five more sectors is found. In addition we demonstrate that increasing its electricity share makes a sector grow faster, and by testing the electricity share versus the growth rates we find another development block around electricity, party overlapping the first one.

Suggested Citation

  • Enflo, Kerstin & Kander, Astrid & Schön, Lennart, 2006. "Development blocks and the second industrial revolution – Sweden 1900-1970," Papers in Innovation Studies 2006/10, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2006_010
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    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/200610_Kerstin_et_al.pdf
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    Keywords

    development block; electricity; GPT; second industrial revolution;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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