A qualitative input-output method to find basic economic structures

Structural analysis deals with economic systems as defined by the set of industries and the relationships between them. However, multi-sectoral models are often limited: when studying economic systems empirically it is difficult to distinguish a priori the subset of basic or important relationships between industries. This research note presents a method to find the core of a productive structure by employing the qualitative approach and avoiding exogenous criteria. Results are presented in a graph of relationships that characterise the productive structure as a whole. In effect, the figure provides information concerning the main paths of influence between sectors in the structure, as well as information regarding the complexity of the economic system. Copyright Springer-Verlag Berlin/Heidelberg 2003