Document Type : Research Paper

Authors

• mohaddaseh soleimani ¹
• Aliasghar Banouei ²
• Esfandiar Jahangard ³
• teymor mohamadi ⁴

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² Department of Economic Planning and Development ,Faculty of Economics , Allameh Tabatabai University

³ Department of Theoretical Economics,Faculty of Economics , Allameh Tabatabai University

⁴ Department of Theoretical Economics, Faculty of Economics. Allameh Tabatabaei University

Abstract

Innovation and technological changes spans various geographical locations over the time.The inability of Input-Output models in measuring the effects of technology changes, caused by new innovations, is known as a weakness of these models. In this article, we show how this weakness can be addressed by employing the fields of influence method. Technology changes are modeled as changes of one or more elements in the direct coefficients matrix and the impact of such changes in the Leontief matrix is measured. Here is the main question: Does the technology changes only impact a limited sector or the entire economical system? In other words, how would technology changes in one sector impact other sectors of economic system? The main goal in this paper is proposing a method which can measure how different sectors get impacted by changes at different levels such as one element, all elements, one row or one column and then evaluates the importance of different sectors. To this aim, Iran’s Input-Output tables over the period of 1365-1395 with the fixed price of Iran’s statistics center in 1390 is used. The impact of technology changes on each sector is measured using Leontief’s inverse matrix and the column field of influence approach (CFOI) approach. Our findings indicate that over this period of time, technological changes in the industry and then construction sectors have the most influence and the mining sector has the least influence on other sectors of Iran’s economy.

Keywords

• Input-Output Table
• Technological Change
• Fields of Influence

Main Subjects

• Economic Development