Sources of structural change: an input-output decomposition analysis for Greece

Abstract

Technical change greatly contributes to the explanation of economic structural changes. The aim of this paper is to measure the extension and the direction of structural and technological change. The impact of structural and technological changes on sectoral gross output was computed by breaking down the total change into the part due to changes in input-output coefficients (technological change) and the part due to changes and composition of final demand. The decomposition of structural change is based on the following questions. What were the engines of growth? What was the role and impact of technological change and which economies experienced the most and least structural change?