A Typology of Propagation of Technology and Social Preferences in the Process of Economic Development: An Input-Output Approach

Eduardo Haddad, Weslem Faria and Joaquim Guilhoto

No 7-2011, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: In this paper we look at the interplay of technology and social preferences in different stages of economic development. We use a set of input-output tables for 32 different countries, published by OECD. The tables refer to the period 1996-2001 and were consolidated in 48 sectors so that structural comparisons were possible. Through the use of the fields of influence of structural change for partitioned input-output systems, we confirm that, for different levels of per capita GDP, technological progress is an important element to drive output growth. However, as an economy evolves, our dataset also confirms that the composition of final demand, which reveals social preferences in a static way, move away from agricultural and manufacturing to services activities. Such structural changes favor sectors with weaker output multipliers generating a force that helps driving income convergence among countries.

Keywords: Social preferences; Economic development; Input-output (search for similar items in EconPapers)
JEL-codes: R10 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2011
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Related works:
Working Paper: A typology of Propagation of Technology and Social Preferences in the Process of Economic Development: An Input-Output Approach (2011)
Working Paper: A typology of propagation of technology and social preferences in the process of economic development: An input-output approach (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:nereus:2011_007

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