Input-Output Analysis: New Results From Markov Chain Theory

TL;DR

This paper introduces a novel approach to input-output analysis using Markov chain theory, providing new insights into interindustrial interactions and economic pole arrangements, demonstrated through an application to Morocco.

Contribution

It presents a new Markov chain-based framework for input-output analysis, linking spectral properties and absorption times to economic pole interactions.

Findings

Enhanced understanding of interindustrial dynamics

Application to Moroccan economy demonstrates practical utility

Spectral analysis reveals key production process characteristics

Abstract

In this work, we propose a new lecture of input-output model reconciliation Markov chain and the dominance theory, in the field of interindustrial poles interactions. A deeper lecture of Leontieff table in term of Markov chain is given, exploiting spectral properties and time to absorption to characterize production processes, then the dualities local-global/dominance- Sensitivity analysis are established, allowing a better understanding of economic poles arrangement. An application to the Moroccan economy is given.