Identifying a Country As ¨Developed¨ Based On Their Structural Similarities

Soza-Amigo, Sergio and Aroca, Patricio (2015): Identifying a Country As ¨Developed¨ Based On Their Structural Similarities.

Abstract

This research begins with the following questions:  Is there consistency between the identification of development and the economic structure it possesses?; Are there similarities between the economies identified with differences in their levels of development?; and, are there non- developed economies with the same structure of developed economies?  To answer these questions, similarities of input-output tables obtained from the OECD (Mid90, Early00 and Mid00) are reviewed, and after, a case study is performed on the Chilean economy. The similarities and changes are investigated by using a structural similarity index, and then by comparing correlations. The results show that: traditional indicators can only be used as references and are non-categorical in their identifications of development; the economies show significant similarities according to their level of development, and there exists significant structural similarities between developed economies and the economy of Chile.

• Item Type: MPRA Paper
• Language: English
• Keywords: Analysis Input-Output, Linkage, Structural Change
• Subjects: C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C49 - Other; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis; F - International Economics > F0 - General > F02 - International Economic Order and Integration; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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