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Mapping industrial patterns and structural change in exports

Author

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  • Guillard, Charlotte

    (UNU-MERIT, BETA, Universite de Strasbourg, and Institute for Innovation and Public Purpose, UCL.)

Abstract

This paper proposes a new methodology for identifying patterns in the organisation of industries and their evolution over time, based on the temporal network structure of the product space. To do this, I apply a community detection algorithm on 5-year snapshots of the product space from 1975 to 2000. This exercise enables us to identify different clusters of related products and to follow their evolution over time. I find that the product space is highly modular, that is it contains well delimited clusters of products. The community structure and its evolution show that the factors explaining industrial patterns and structural change are more complex than the traditional divide between low, medium and high-tech industries. Several common drivers can be identified to explain the emergence and evolution of different communities including the experience in a technological domain, factor abundance, scale economies as well as global value chains and vertical integration. Moreover, I find that technological domains and boundaries between industries are not always clear-cut and can evolve over time.

Suggested Citation

  • Guillard, Charlotte, 2020. "Mapping industrial patterns and structural change in exports," MERIT Working Papers 2020-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2020005
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    File URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-005.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Structural change; Capabilities; Economic Complexity; Networks; Community Structure; Exports;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional

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