Measuring the Effects of Changing Structure on Employment Generation Potential

David Henderson, Peter McGregor and Iain H. McNicoll
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David Henderson: Industry Department for Scotland, Edinburgh EHJ 37A Scotland
Iain H. McNicoll: Fraser of Allander Institute, University of Strathclyde, Glasgow G4 OLN Scotland

International Regional Science Review, 1989, vol. 12, issue 1, 57-65

Abstract: This article describes a method for examining components of structural change in an open economy. A distinguishing characteristic of the method is that changes in external trade behavior are explicitly recognized as a separate component of structural change. The method is utilized to examine the effects of structural change on employment-generating potential in Scotland between 1973 and 1979. Overall, employment generation potential (employment multipliers per unit final demand) fell over the six-year period. Changes in import propensities and employment/output coefficients both led to reductions, but the negative contributions of these components were partially offset by increased use of intermediate inputs. For a number of industries, the changes in employment generation potential and the contributions of the individual components differed substantially from the Scottish average.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:sae:inrsre:v:12:y:1989:i:1:p:57-65

DOI: 10.1177/016001768901200104

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