Drivers of economic growth in advanced economies: results from a multisectorial- multiregional perspective

Abstract

Since the beginning of the crisis, determinants of economic growth have returned to the forefront of economic debates. In this context, the main objective of this paper is to analyse how the global economy has evolved in the years between 1996 and 2009, focusing our analysis on developed countries, in order to determine the factors that can explain economic growth. To do that, our work analyses the main magnitudes provided by the WIOD and the associated Multiregional input-output model. First, we study the evolution of key variables such as output, value added, trade, and capital, and the structural changes observed for these variables. On the basis of this first analysis, we go deeper into the identification of drivers of income generation by way of an MRIO-SDA. The results show a significant influence of demand, whereas components associated with technological elements appear to have a less relevant development.

Keywords

• economic growth
• World input-output tables
• Structural Decomposition Analysis