Identifying development blocks - A new methodology Implemented on Swedish industry 1900–1974

Summary, in English

The paper specifies a quantitative methodology for exploring development blocks. The concept of 'development block' was a major contribution to the historical analysis of industrial transformation by the late Erik Dahmen, but development blocks have mainly been analyzed by qualitative methods and indirect indicators and not statistically identified. In this paper, development blocks are identified by means of a combination of co-integration analysis and Granger causality. Using these techniques, we are able to identify two partially overlapping development blocks in the Swedish economy, formed around the electricity generating sector: one with metal, metal goods, machinery and railways; and another with pulp and paper, chemicals, and machinery.

• Author: Kerstin Enflo; Astrid Kander; Lennart Schön
• Department/s: Department of Economic History; CIRCLE
• Publishing year: 2008
• Language: English
• Pages: 57-76
• Publication/Series: Journal of Evolutionary Economics
• Volume: 18
• Issue: 1
• Links: http://dx.doi.org/10.1007/s00191-007-0070-8
• Document type: Journal article
• Publisher: Springer
• Topic: Other Social Sciences; Economic History
• Keywords: electricity; development block; Granger causality; co-integration
• Status: Published
• ISBN/ISSN/Other: ISSN: 0936-9937