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Input-Output Networks and Growth Performances across Countries

Author

Listed:
  • Alper Duman

    () (Department of Economics, Izmir University of Economics)

  • Gül Ertan Özgüzer

    () (Department of Economics, Izmir University of Economics)

Abstract

This paper investigates the relationship between economic growth performances of countries and their structural input-output network characteristics. We employ a new centrality measure developed by Blöchl et al. (2011) for directed networks with self-loops to determine sectoral heterogeneities in IO tables of 33 OECD countries over the period 1995-2011. Relating the gini indices of these centrality measures to output growth reveals that countries with less heterogenous IO networks tend to grow faster. Such finding implies a key role for the inter-linkages across sectors in economic growth, and underlines the importance of designation of sectoral policy measures to counteract heterogeneity of IO networks.

Suggested Citation

  • Alper Duman & Gül Ertan Özgüzer, 2015. "Input-Output Networks and Growth Performances across Countries," Working Papers 1504, Izmir University of Economics.
  • Handle: RePEc:izm:wpaper:1504
    as

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    File URL: http://eco.ieu.edu.tr/wp-content/wp1504.pdf
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    References listed on IDEAS

    as
    1. Vasco Carvalho, 2007. "Aggregate fluctuations and the network structure of intersectoral trade," Economics Working Papers 1206, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2010.
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    3. Antonio Ciccone, 2002. "Input Chains and Industrialization," Review of Economic Studies, Oxford University Press, vol. 69(3), pages 565-587.
    4. Rudolf Kubík, 2015. "What is the Real Effect of Schooling on Economic Growth?," Prague Economic Papers, University of Economics, Prague, vol. 2015(2), pages 125-135.
    5. Basu, Susanto, 1995. "Intermediate Goods and Business Cycles: Implications for Productivity and Welfare," American Economic Review, American Economic Association, vol. 85(3), pages 512-531, June.
    6. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    7. Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," American Economic Review, American Economic Association, vol. 94(4), pages 813-835, September.
    8. Dupor, Bill, 1999. "Aggregation and irrelevance in multi-sector models," Journal of Monetary Economics, Elsevier, vol. 43(2), pages 391-409, April.
    9. Charles I. Jones, 2011. "Intermediate Goods and Weak Links in the Theory of Economic Development," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(2), pages 1-28, April.
    10. Michael Horvath, 1998. "Cyclicality and Sectoral Linkages: Aggregate Fluctuations from Independent Sectoral Shocks," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(4), pages 781-808, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    input-output tables; networks; centrality; economic growth; heterogeneity;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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