Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Intermediate-input intensities vary systematically with economic development across countries. These cross-country differences in input–output linkages account for 74% of the curvature in the hump shape in industry’s share in value added across levels of income per capita. This is twice as much as can be accounted for by variation in the composition of final demand. Using a three-sector, open-economy model of structural change I find that this result is robust to general equilibrium effects.