Difference between revisions of "Backward Linkage"
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== Definition == | == Definition == | ||
| − | '''Backward Linkage''' | + | '''Backward Linkage''' captures the interconnection of an industry to other industries from which it purchases its inputs in order to produce its output. |
It is measured as the proportion of intermediate consumption to the total output of the sector (direct backward linkage) or to the total output requirement (total backward linkage). | It is measured as the proportion of intermediate consumption to the total output of the sector (direct backward linkage) or to the total output requirement (total backward linkage). | ||
An industry has significant backward linkages when its production of output requires substantial intermediate inputs from many other industries.<ref>Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009</ref> | An industry has significant backward linkages when its production of output requires substantial intermediate inputs from many other industries.<ref>Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009</ref> | ||
| + | |||
| + | == See Also == | ||
| + | * [[Forward Linkage]] | ||
== References == | == References == | ||
Revision as of 15:22, 16 November 2023
Definition
Backward Linkage captures the interconnection of an industry to other industries from which it purchases its inputs in order to produce its output.
It is measured as the proportion of intermediate consumption to the total output of the sector (direct backward linkage) or to the total output requirement (total backward linkage).
An industry has significant backward linkages when its production of output requires substantial intermediate inputs from many other industries.[1]
See Also
References
- ↑ Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009
