Analysis of Structural Change for the Kyrgyz Republic Economy: Evidence from Decomposition of Output Changes and Multiplier Product Matrix

Abstract

Input-output analyses, which investigate intersectoral interdependencies and structural changes, are critical to sectoral planning by providing policymakers with significant information. This study draws on the input-output tables calculated by the Asian Development Bank for Asian and Pacific countries, specifically for the Kyrgyz Republic. The decomposition of output changes and the multiplier product matrix are employed to identify any structural changes in the country’s economy. The empirical findings indicate that a major structural change has occurred in the Kyrgyz economy, led by the financial intermediation sector.