The paper specifies a quantitative methodology for exploring development blocks. The concept of 'development block' was a major contribution to the historical analysis of industrial transformation by the late Erik Dahmen, but development blocks have mainly been analyzed by qualitative methods and indirect indicators and not statistically identified. In this paper, development blocks are identified by means of a combination of co-integration analysis and Granger causality. Using these techniques, we are able to identify two partially overlapping development blocks in the Swedish economy, formed around the electricity generating sector: one with metal, metal goods, machinery and railways; and another with pulp and paper, chemicals, and machinery.
SAMHÄLLSVETENSKAP -- Annan samhällsvetenskap -- Tvärvetenskapliga studier (hsv//swe)
SOCIAL SCIENCES -- Other Social Sciences -- Social Sciences Interdisciplinary (hsv//eng)
SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Ekonomisk historia (hsv//swe)
SOCIAL SCIENCES -- Economics and Business -- Economic History (hsv//eng)