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The Determinants of Structural Change in the European Union: A New Application of RAS

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  • Jan A van der Linden

    (Policy Research Corporation NV, Jan Moorkensstraat 68, B-2600 Antwerp, Belgium)

  • Erik Dietzenbacher

    (Department of Economics, University of Groningen, PO Box 800, NL-9700 AV Groningen, The Netherlands)

Abstract

In economic theory and practice, technological developments and changes in relative prices lead to changes in the input mix of one or more industries. Via intersectoral and interregional relations, this affects the entire production structure. In analysing the structural changes in an economy, changes in the input coefficients are a major determinant. Typically, however, this determinant is not unravelled further into its underlying sources. In the present paper we apply the RAS method to decompose the input coefficient changes into column-specific, row-specific, and cell-specific changes. They indicate the change in the intermediate input intensity of a sector, the average substitution of the intermediate goods and services provided by a sector, and the sector-specific substitutions, respectively. The method is applied to input–output tables of European Union member states, as issued every five years between 1965 and 1985. The usefulness of the RAS method as a descriptive tool is established.

Suggested Citation

  • Jan A van der Linden & Erik Dietzenbacher, 2000. "The Determinants of Structural Change in the European Union: A New Application of RAS," Environment and Planning A, , vol. 32(12), pages 2205-2229, December.
    • Handle: RePEc:sae:envira:v:32:y:2000:i:12:p:2205-2229
    DOI: 10.1068/a32105
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    2. Bernadette Andreosso-O'Callaghan & Guoqiang Yue, 2000. "An Analysis of Structural Change in China using Biproportional Methods," Economic Systems Research, Taylor & Francis Journals, vol. 12(1), pages 99-111.
    3. Jun Wan & Jae Hong Kim & Geoffrey J D Hewings, 2013. "Inspecting Regional Economic Structural Changes through Linking Occupations and Industries," Environment and Planning A, , vol. 45(3), pages 614-633, March.
    4. Oliveira, Maria Aparecida Silva & Persona, Helena Loiola, 2016. "Structural changes in Brazilian industry (1995-2009)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    5. Selin Gundes, 2011. "Input structure of the construction industry: a cross-country analysis, 1968-90," Construction Management and Economics, Taylor & Francis Journals, vol. 29(6), pages 613-621.
    6. Xiangzheng Deng & Fan Zhang & Zhan Wang & Xing Li & Tao Zhang, 2014. "An Extended Input Output Table Compiled for Analyzing Water Demand and Consumption at County Level in China," Sustainability, MDPI, vol. 6(6), pages 1-20, May.
    7. Erik Dietzenbacher & Bart Los, 2000. "Structural Decomposition Analyses with Dependent Determinants," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 497-514.
    8. Ryoko Morioka & Keisuke Nansai & Koji Tsuda, 2018. "Role of linkage structures in supply chain for managing greenhouse gas emissions," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-21, December.
    9. Andrea BONFIGLIO, 2005. "Sector Potentiality and Sources of Growth. An Analysis of Structural Changes in Italy in the Nineties," Working Papers 237, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Uduak Akpan & Ovunda Green & Subhes Bhattacharyya & Salisu Isihak, 2015. "Effect of Technology Change on $$\hbox {CO}_{2}$$ CO 2 Emissions in Japan’s Industrial Sectors in the Period 1995–2005: An Input–Output Structural Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(2), pages 165-189, June.
    11. Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
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