Typology of structural change in a regional economy: A temporal inverse analysis

Earlier studies have investigated the hollowing-out phenomenon of the Chicago economy, in which the manufacturing sectors in Chicago have decreased their intermediate dependency within the region while the service sectors have increased their dependency. In this paper, a series of annual input-output tables for the Chicago metropolitan economy during the period of 1980-1997 was again employed for a further investigation of the structural change using an alternative tool, the temporal Leontief inverse analysis, that can assist in exploring trends and uncovering tendencies in individual sectors or groups of sectors within the context of an economy-wide system of accounts. The results are compared with the earlier studies for examining the nature and details of the hollowing-out phenomenon.