Input-output research in structural equivalence: Extracting paths and similarities

The systematic study of the way in which intersectoral transactions are organized is an interesting source of information about the pattern of existing economic relationships in one country that allows comparison of its structural features with those of another economy of reference. A new tool in the input-output context that allows us to reveal the functioning economic structure by determining the structural equivalent sectoral groups is proposed. The aim is to outline a new approach to clustering sectors based on similarities between sector linkages profiles. The obtained set of structurally equivalent sectors defines a reduced model which provides additional information about the main paths of influence and the degree of complexity. The structural equivalent sectors of Spain in 2000 and 2005 are determined. The Spanish economy has evolved to a more connected and oriented-service economy.

► Economic positions formed by structural equivalent sectors ► Clustering sectors based on similarities of sales and purchase profiles ► Essential economic diffusion paths observed in a simplified way ► The change toward a more knowledge-intensive economy is showed.