Backward Linkage
From Open Risk Manual
Definition
Backward Linkage. 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]
References
- ↑ Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009
