Research paperDynamic intersectoral models with power-law memory

•Intersectoral dynamic models with power-law memory are proposed.•Solutions of equations of open and closed intersectoral models are derived.•Examples of two-sectoral dynamics with power-law memory are suggested.•Principle of changing of technological growth rates is proposed.•Principle of domination change is suggested.

Intersectoral dynamic models with power-law memory are proposed. The equations of open and closed intersectoral models, in which the memory effects are described by the Caputo derivatives of non-integer orders, are derived. We suggest solutions of these equations, which have the form of linear combinations of the Mittag-Leffler functions and which are characterized by different effective growth rates. Examples of intersectoral dynamics with power-law memory are suggested for two sectoral cases. We formulate two principles of intersectoral dynamics with memory: the principle of changing of technological growth rates and the principle of domination change. It has been shown that in the input-output economic dynamics the effects of fading memory can change the economic growth rate and dominant behavior of economic sectors.