A Structural Analysis of European Union Economy

Abstract

Based on the input-output analysis, the paper characterizes the structure of European economy in 2010 and 2011, on six main economic sectors. The sectoral structures of backward and forward linkages, and their absolute effects starting from the final demand, were compared with the real structures of sectors output, sectoral imports, sectoral value added, in 2011 face to 2010. The changes in final demand and in sectoral output can be analyzed in the propagation processes of the inter-sectoral economic flows, and allow us to know the behavior at macroeconomic level of European economy. The common economic policies at European level can be undertaken to keep the equilibrium between different sectors, to stimulate the sectors with high levels of productivity, to ensure the efficiency of using the resources, and the sustainability of economic development, which are the purposes of a smart development.

Keywords

• input-output table
• backward linkage
• forward linkage
• technological matrix
• input coefficients
• output multipliers