Sophisticated jobs matter for economic development: an empirical analysis based on input-output matrices and economic complexity

Paulo Gala, Jhean Steffan Martines de Camargo, Guilherme Magacho and Igor Rocha

No 439, Textos para discussão from FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil)

Abstract: A wide range of economic development theoreticians have discussed the manufacturing sector’s properties as an engine for economic growth. More recently, the sophisticated services sector began to share similar characteristics with the industrial sector as a driver for economic growth, particularly as a locus of technological innovation. This paper considers the symbiotic relationship between these two sectors, and assesses their importance in the technological development of countries. More precisely, this study uses economic complexity analysis and input-output matrices to assess the importance of employment creation in advanced sectors for development of countries. Results show that in the long-run, economic development depends on the effort and the ability of countries to generate employment in advanced sectors.

Date: 2017
New Economics Papers: this item is included in nep-hme and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:eesptd:439

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