Economic Development and the Structure of Production

Abstract

Significant changes in economic structure take place during the process of development. In this paper we concentrate on changes in the nature of interdependence in production summarized in input–output tables. The analysis is based on a sample of 83 input–output tables from 30 countries over the period 1950–75. We first compare measures of sectoral interdependence across countries and over time, and then estimate the average pattern of change in the structure of intermediate use of output with the level of development. Changes in intermediate use are traced back to changes in technology and compositional effects.