Abstract
This article applies the distinction of production/nonproduction activities in an input-output framework and examines the impact of this distinction on economic growth. More specifically, it employs Miyazawa’s method and decomposes the standard input-output (IO) matrix of technological coefficients of the United States for the period 1995–2018 into two submatrices. The first submatrix includes the matrix of technological coefficients of production sectors while the other of the nonproduction ones. In so doing, the article estimates the effect that each type of sectors exerts on the other and on economic growth. The findings suggest that the distinction is meaningful to account for economic growth and, moreover, the production sectors are the ones that support nonproduction activities and growth in general.
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