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R&D and wholesale trade are critical to the economy: Identifying dominant sectors from economic networks

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  • Dungey, Mardi
  • Volkov, Vladimir

Abstract

Using a network approach we identify critical sectors for 49 economies. Wholesale trade is dominant for over half the countries, but increasingly R&D activities have an equivalent importance. Recognizing R&D as critical urges caution against disinvesting in this sector.

Suggested Citation

  • Dungey, Mardi & Volkov, Vladimir, 2018. "R&D and wholesale trade are critical to the economy: Identifying dominant sectors from economic networks," Economics Letters, Elsevier, vol. 162(C), pages 81-85.
    • Handle: RePEc:eee:ecolet:v:162:y:2018:i:c:p:81-85
    DOI: 10.1016/j.econlet.2017.11.007
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    Cited by:

    1. Pesaran, M. Hashem & Yang, Cynthia Fan, 2020. "Econometric analysis of production networks with dominant units," Journal of Econometrics, Elsevier, vol. 219(2), pages 507-541.
    2. Hamill, Philip A. & Hutchinson, Mark & Nguyen, Quang Minh Nhi & Mulcahy, Mark, 2018. "FDA approval announcements: Attention-grabbing or event-day misspecification?," Economics Letters, Elsevier, vol. 170(C), pages 171-174.
    3. Pesaran, M. Hashem & Yang, Cynthia Fan, 2021. "Estimation and inference in spatial models with dominant units," Journal of Econometrics, Elsevier, vol. 221(2), pages 591-615.
    4. George Kapetanios & M. Hashem Pesaran & Simon Reese, 2018. "A Residual-based Threshold Method for Detection of Units that are Too Big to Fail in Large Factor Models," CESifo Working Paper Series 7401, CESifo.
    5. Jorge Miranda Pinto, 2021. "Production Network Structure, Service Share, and Aggregate Volatility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 146-173, January.

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    More about this item

    Keywords

    Networks; Input–output tables; Sectors; Research and development;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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