Analyzing the production structure by the subsystem approach to the input-output model: A cross-country perspective

The structure of the international productive system has changed a lot over the last few decades. The principal aspects are two: a great growth of the services sector and an increase of the integration and the interdependence among the different sectors. These aspects have contributed to overcoming the traditional distinction of sectors. The different economic activities can indeed be complementary rather than substitutable. It follows that in most economies, two specific trends can be observed, such as the tertiarization of manufacturing and the industrialization of services. This paper aims to provide new empirical evidences through the analysis of structural change within six major developed countries (Germany, Italy, France, Spain, UK and US). By using the World Input-Output Database, the paper adopts an Input-Output subsystem approach during the time period 1995-2011.