An input-output analysis of the de-industrialisation of the U.K. economy, 1963-1973

Abstract

The present work aims to estimate output and price elasticities of sectors as well as the whole economy, and to find out the reasons why the phenomenon of de-industrialisation has been observed in advanced countries such as the U.K. in recent decades. For this purpose, the authors use input-output tables which are combined with sectoral production functions (of the Cobb-Douglas type) to represent the supply side. Personal consumption of goods and services is regarded as endogenous. The results suggest that changing consumption and final demand patterns are the principal factors affecting changes in the U.K. JEL: N14, O14

Keywords

• U.K.
• de-industrialisation
• consumption
• demand