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CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University

No 2006/10:
Development blocks and the second industrial revolution – Sweden 1900-1970

Kerstin Enflo (), Astrid Kander () and Lennart Schön ()

Abstract: The paper explores development blocks around electrification at a 14 sector level in the Swedish economy 1900-1974. We suggest that long-run cointegration relations in combination with mutually Granger-causing short-run effects form a development block. One block centred on electricity that comprises five more sectors is found. In addition we demonstrate that increasing its electricity share makes a sector grow faster, and by testing the electricity share versus the growth rates we find another development block around electricity, party overlapping the first one.

Keywords: development block; electricity; GPT; second industrial revolution; (follow links to similar papers)

JEL-Codes: O30; (follow links to similar papers)

32 pages, October 1, 2006

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