Economics of the input-output relations

Garabed Minassian

Economic Thought journal, 2017, issue 3, 3-29, 30-53

Abstract: The financial and economic crisis of 2008 has substantially affected the economic structures and relationships in Bulgaria. The assessment of the input-output relations reveals that failures accompany the development of micro economy,on sectors' and subsectors' level. It is shown that the structural changes correlate positively with economic development. One should differentiate between the various types of structural dynamics – purposeful or chaotic (searching). With the first type of structural dynamics (the pre-crisis one) the dependence on the economic dynamics is obvious whereas with the second type (the post-crisis one)the latter is highly diluted. The financial and economic crisis has its positive influences – it starts a process of cleansing the economy and shifting it to a higher level in the development spiral. The post-crisis period can be described by an active restructuring of the input coefficient matrix. The crisis stated a process of progressive raw materials substitution. Producers looked for alternative production options, mainly by means of raw materials restructuring and savings in order to reduce their current expenditures. The crisis leaves its imprint on the formation of the key sectors. What looms in the group of key sectors is the presence of the main industrial manufacturing sectors. This specifics is much more definite in the case of better developed economies. The well-known fact (which is often forgotten or ignored) has confirmed that a modern economy cannot develop successfully without the solid presence of industry. The other sectors (agriculture primarily, tourism and services as a whole) complete the skeleton in order to get a sound body of an efficiently functioning economy.

JEL-codes: C65 D22 D57 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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