Dominick Bartelme, Yuriy Gorodnichenko, 26 June 2015

Specialisation has been extensively researched at the micro and macro levels, but the middle one has received little attention. This column argues that the middle level – linkages across firms and industries within a country – can be important in economic development. Having built a database of input-output tables for a broad spectrum of countries and times, the authors show that countries with stronger linkages have indeed higher productivity.  

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