Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU

Garbellini, Nadia and Wirkierman, Ariel Luis (2014) Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU. Structural Change and Economic Dynamics, 28. pp. 60-74. ISSN 0954-349X

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Abstract

Clusters and subsystems are two frequently used tools in inter-industry analysis, the former clarifying structure while the latter summarising circularity. Since industry blocks with crucial direct linkages will probably have strong indirect ties as well, localised intra-cluster feedback effects may play a prominent role in explaining total labour requirements. In this paper, we first quantify the labour redistribution taking place between industries and subsystems within and between clusters. Next, we extend the standard notion of vertically integrated labour to account for intra- and extra-cluster circularity, quantifying the extent to which overall productivity growth in every subsystem originates from intra-cluster industries. Both issues are illustrated for the consolidated European Union (EU27) economy between 2000 and 2007.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Subjects: H Social Sciences > HB Economic theory. Demography > HB0075 History of economics. History of economic theory Including special economic schools
H Social Sciences > HB Economic theory. Demography > HB0131 Methodology > HB0135 Mathematical economics. Quantitative methods Including econometrics, input-output analysis, game theory
H Social Sciences > HB Economic theory. Demography > HB0241 Production. Theory of the firm. Supply-side economics
Depositing User: Ariel Wirkierman
Date Deposited: 04 Jul 2016 16:00
Last Modified: 04 Jul 2016 16:00
URI: http://sro.sussex.ac.uk/id/eprint/61875
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