THE INTER-INDUSTRIAL LINKAGE INDICATORS (IILI): A CONTRIBUTION FOR THE MEASUREMENT OF THE INDUSTRIAL STRUCTURE EVOLUTION IN CHINA (2002, 2007)

Chong Yin and Zhi Yuan Yang

Applied Econometrics and International Development, 2016, vol. 16, issue 1

Abstract: The period from 2002 to 2007 was an important growth stage in China’s economic cycle before the financial crisis in 2008. When the developing countries come into the acceleration cycle of economic growth, there is usually an inevitable change in their industrial structures. This article aims to contribute to this discussion by presenting an inter-industrial linkage indicators system on Industrial Complex Network (ICN) and input-output technology. This multi-level and multi-dimensional Inter-industrial Linkage Indicators (IILI) could describe the overall technical structure, the extension of industrial chains and the industrial influence in a region or a country, which are the important aspects of industrial structure evolution. On the base of IILI, the industrial structure evolution in China from 2002 to 2007 was measured and analyzed. The results show that China’ industrial structure upgrading is closely related to the inter-industrial linkage and the heavy-industrialization of industrial structure is obvious. We can further use the IILI as a wide tool to reveal the correlation between economic growth and industrial structure evolution and to support economic policies effectively.

Keywords: industrial structure evolution; Inter-industrial Linkage Indicators (IILI); inter-industrial linkage; Industry Complex Network (ICN); input-output table. (search for similar items in EconPapers)
Date: 2016
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