Patterns and sources of structural change in Taiwan: An analysis of input-output coefficients

Deskripsi

This paper intends to propose a simple method, namely, the row scaler-cum-column scaler indices to measure the structural change and to identify the sources of sectoral growth. It is performed by examining the input-output coefficient changes from both demand and supply sides of an economy. The method is applied to the case of Taiwan for the period of 1966-91 which was marked by rapid economic growth. Empirical findings based on both fixed-base and shifting-base scenarios using deflated data reveal a consistent result of using the demand-driven and supply-constrained IO models for inter industry analysis. Significant changes in the coefficients of intermediate transaction, final demand, and value added matrices for majority of industries are observed. Extensive variations in industrial patterns are also detected across various development periods.