Identification of Leading Industries in the Growth of Bangladesh & Other South Asian Lower Income Developing Countries: A Novel Structural Decomposition Approach Using Input–Output Tables

Prospective Accelerating Sectors to Attain Sustainable Development in Bangladesh Economy: Findings from a Sectoral Approach Using Input-Output Analysis

“…Similar to direct increment, previous increment will show the oldest year's influence. As we discussed in our previous research [39], ∆ 2 x t could be positive if both ∆ 2 L t & ∆ 2 f t are positive. These two terms indicate the 2nd order difference of technology and final demand change between the two adjacent time periods.…”

“…In this regard we use 2nd order difference ∆ 2 x t , which will take the difference between ∆x t & ∆x t−1 . According to our previous research Huq and Ichihashi [39], if the 2nd order difference is positive, there is high possibility the sector is constantly growing over the both time periods. After calculating 2nd order difference, we could able to identify some top sectors which are not present in the top sectors of 1st order difference.…”

“…If we analyze the equation of DOD decomposition, we will see the acceleration part contains the new information which could not be found from traditional SDA's 1st order difference decomposition. In our previous research [39], we showed acceleration part is very important to determine whether a sector is accelerating or decelerating. Regarding the approach to a solution for the growth pattern, traditional SDA shows us the linear solution with two points of time.…”

“…The components of the DOD decomposition are proposed to capture, when applied to study the process of change in an economy, features that are not considered in a traditional SDA. For the DOD decomposition methodology, we mainly followed the methodology part from our previous research [39] in which we described the methodology part in more details. We implemented a simple technique modifying classic decomposition method where we take the difference of two periods of output change.…”

“…We implemented a simple technique modifying classic decomposition method where we take the difference of two periods of output change. The basic equation of DOD decomposition following our method from Huq and Ichihashi [39] is as follows:…”