Using Input-Output Analysis to Measure U.S. Economic Structural
Change Over a 24 Year Period
by Jiemin Guo and Mark A. Planting
Presented at the 13th International Conference on Input-Output Techniques,
Macerata, Italy, August 21-25, 2000.
Many studies have been prepared on structural change in the U.S. economy
using input-output analysis. These include, among others, Carter's examination
of U.S. economic technological change over the 1939-1963 period and, more
recently, Sonis new decomposition approaches to visually display
structural change with application to U.S. input-output tables from 1947-1977./1/
This paper, using Sonis techniques of displaying structural change,
evaluates changes in the U.S. economy over the 1972 to 1996 period, focusing
on interindustry linkages and the effect of international trade on those
linkages. The study shows that the relative impact of manufacturing on
the economy has declined in the United States from 1972 to 1996 and that
import penetration has been a major factor in this decline. The graphical
presentation of interindustry relationships through the Multiplier
Product Matrix (MPM) and its associated economic landscape
provides a visualization of the U.S. economic structure for selected years
and how it has changed over time.
1. Ann Carter, Structural Change in the American Economy.
Cambridge: Harvard University Press, 1970. Michael Sonis, G.J.D.
Hewings, and J. Guo, Sources of Structural Change in Input-Output
Systems: A Field of Influence Approach, Economic Systems Research,
1996, Vol. 8, No. 1.
Last changed: October 26, 2000