A typology of propagation of changes on the structure of a multiregional economic system: the case of the European Union, 1975-1985

The effects of structural change in all sectors of some regions in multiregional input-output systems are explored in this paper. For each region, the changes in direct inputs are decomposed into a matrix of intraregional changes and a matrix of interregional backward linkage changes. This distinction provides for a decomposition of changes in the Leontief inverse into a sum of matrices representing the matrices of intraregional and interregional fields of influence of changes. In turn, this process facilitates the identification of changes in gross outputs that may be traced to changes in intra- and interregional structural changes. The analysis is applied to the European input-output tables for 1975 and 1985.