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Using Input-output Links to Measure the Potential for Service-Led Development in Formerly Transition Economies

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  • Mercer-Blackman, Valerie
  • Mariasingham, Joseph
  • Garay, Krizia

Abstract

Many countries of the Former Soviet Union have not diversified their economies according to traditional indicators, leading policy analysts to suggest that the objective should be to increase the share of manufacturing employment in the economy to levels similar to East Asian countries. This paper uses input-output analysis to develop a better measure of diversification that accounts for global production links and suggests that the key to development for these primary product exporting economies is business and professional services, even if they are not directly exported. The paper also looks at measures of comparative advantage and diversification and explains why worries of premature deindustrialization are unwarranted if value-added contribution is properly measured.

Suggested Citation

  • Mercer-Blackman, Valerie & Mariasingham, Joseph & Garay, Krizia, 2018. "Using Input-output Links to Measure the Potential for Service-Led Development in Formerly Transition Economies," Conference papers 332983, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332983
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    File URL: https://ageconsearch.umn.edu/record/332983/files/9655.pdf
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    References listed on IDEAS

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