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A typology of Propagation of Technology and Social Preferences in the Process of Economic Development: An Input-Output Approach

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  • Eduardo A. Haddad
  • Weslem R. Faria, Joaquim J. M. Guilhoto

Abstract

In this paper we look at the interplay of technology and social preferences in different stages of economic development. We use a set of input-output tables for 32 different countries, published by OECD. The tables refer to the period 1996-2001 and were consolidated in 48 sectors so that structural comparisons were possible. Through the use of the fields of influence of structural change for partitioned input-output systems, we confirm that, for different levels of per capita GDP, technological progress is an important element to drive output growth. However, as an economy evolves, our dataset also confirm that the composition of final demand, which reveals social preferences in a static way, move away from agricultural and manufacturing to services activities. Such structural changes favor sectors with weaker output multipliers generating a force that helps driving income convergence among countries.

Suggested Citation

  • Eduardo A. Haddad & Weslem R. Faria, Joaquim J. M. Guilhoto, 2011. "A typology of Propagation of Technology and Social Preferences in the Process of Economic Development: An Input-Output Approach," Working Papers, Department of Economics 2011_10, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2011wpecon10
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    References listed on IDEAS

    as
    1. Sonis, Michael & Hewings, Geoffrey J.D., 1993. "Hierarchies of Regional Sub-Structures and Their Multipliers within Input-output Systems Miyazawa Revisited," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 34(1), pages 33-44, June.
    2. Norihiko Yamano & Nadim Ahmad, 2006. "The OECD Input-Output Database: 2006 Edition," OECD Science, Technology and Industry Working Papers 2006/8, OECD Publishing.
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    More about this item

    Keywords

    social preferences; economic development; input-output;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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