On Input-Output Linkage Measures
17 Pages Posted: 6 Dec 2010
Date Written: November 17, 2010
We consider six widely used input-output (IO) linkage measures in both traditional and (less used) generalized IO settings. We derive closed-form expressions for the so-called hypothetical extraction linkages, which identify the exact driving forces behind these measures. Next, we propose a net forward linkage indicator as a "counterpart" of the Oosterhaven and Stelder’s (2002) net backward linkage. It is shown that all the linkage measures are closely interrelated. Finally, we make an empirical assessment of similarity of all seven IO linkage measures.
Keywords: Backward linkages, forward linkages, net linkages, factor worth, generalized linkages
JEL Classification: C67, D57, R11
Suggested Citation: Suggested Citation