An Investigation of Industry Associations, Association Loops, and Economic Complexity: Application to Canada and the United States

Chokri Dridi and Geoffrey J.D. Hewings
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Geoffrey J.D. Hewings: Regional Economics Applications Laboratory, University of Illinois at Urbana-Champaign

Urban/Regional from EconWPA

Abstract: Various methods were proposed to understand the linkages in an input- output system; however many focused only on the identification of key sectors in the economy. An alternative approach, identifying analytically importance of elements and combinations of elements was proposed as a field of influence theory (Sonis et al., 1996). The purpose of this paper is to offer a complementary approach to the field of influence and the socalled 'Matrioshka principal' (Sonis and Hewings, 1990); the objectives are to identify simple row-column associations (i.e. statistical dependence), seek hierarchical associations between supply and demand in input-output systems and the decomposition of economic complexity into finite stages. For the identification of simple dependencies between rows and columns, we use a log-linear regression and for hierarchical associations and the identification of complexity stages, we use the data analysis technique known as dual scaling. Results of both approaches will be applied to input-output tables of the US and Canada.

Keywords: Dual scaling; industry associations; loops; economic complexity (search for similar items in EconPapers)
JEL-codes: C12 C20 C67 O51 O57 R15 (search for similar items in EconPapers)
Date: 2002-10-25, Revised 2005-02-23
Note: Type of Document - pdf; prepared on IBM PC; to print on all;
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Journal Article: An Investigation of Industry Associations, Association Loops and Economic Complexity: Application to Canada and the United States (2002)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpur:0210001

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