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Identification of industrial complexes from the input-output tables of Canada and the USA: Some empirical tests

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Abstract

In large disaggregated input-output tables the conventional practice of triangularizied hierarchy of industries may not always work. Very often there are sets of industries which are mutually related by backward and forward linkages such that they represent coherent groups that are unrelated to the remaining industries in terms of transactions taking place in the input-output tables. To identify such coherent sets or blocks of industries which we call ‘industrial complexes’ in the input-output tables has been the major objective of this paper. An algorithm is designed to meet this objective that also avoids the irrelevance and complications of the multivariate analyses that are usually applied to such a search.Some empirical tests are then performed to discover the industrial complexes from the input-output tables of Canada, 1961 and 1966, and the US, 1963.

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Authors and Affiliations

  1. Economic Council of Canada, P.O. Box 527, KIP 5V6, Ottawa, Ontario

    B. K. Lodh

  2. Statistics Canada, Coats Bldg., Tunney's Pasture, KIA 0T6, Ottawa, Ontario

    J. S. Lewis

Authors
  1. B. K. Lodh
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  2. J. S. Lewis
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The authors are the Research Officers of the Economic Council of Canada, Ottawa and the Statistics Canada, Ottawa, respectively. The views expressed in this paper are those of the authors and do not purport to represent the official views. Garteful acknowledgement is due to the Input-Output Division of the Statistics Canada and the Department of Regional Economic Expansion, Ottawa (where the first author was initially employed) for providing the essential data base as well as the financial resources for computer use. The authors are also much thankful to ProfessorsJ. Tinbergen andL. Johansen for their incisive comments although as usual the authors alone bear the whole responsibility for any errors that may persist.

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Lodh, B.K., Lewis, J.S. Identification of industrial complexes from the input-output tables of Canada and the USA: Some empirical tests. Empirical Economics 1, 53–80 (1976). https://doi.org/10.1007/BF01764293

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  • DOI: https://doi.org/10.1007/BF01764293

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