Growth patterns, structural change and input-output coefficients

The Input-Output model assumes that as economic systems develops, the technical coefficient matrix changes following either of two tendencies; one, the entries of the matrix shrink due to increased efficiency on the production lines; two, they expand, while productivity gains concentrate in the use of factors (nonproduced inputs). Further, the economic structure grows more complex as industries become more tightly (vertically) integrated and the development process evolves. Both phenomena have seldom been analysed together despite the apparent connections those may have with the evolution of economic structures and the development opportunities countries may face. This paper intend to examine the implications of these tendencies on the evolution of the economic systems in regards to the dynamics the growth process may adopt.