Difference between revisions of "Forward Linkage"

From Open Risk Manual
Line 2: Line 2:
 
'''Forward Linkage'''. The interconnection of an industry to other industries to which it sells its outputs.  
 
'''Forward Linkage'''. The interconnection of an industry to other industries to which it sells its outputs.  
  
It is measured as the row sum of the direct requirements table (direct forward linkage) or as the row sum of the total requirements table (total forward linkage). An industry has significant forward linkages when a substantial amount of its output is used by other industries as intermediate inputs to their production.<ref>Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009</ref>
+
In the simplest forms forward linkages are measured as summations of the appropriate [[Ghosh Model]] matrix<ref>R.E. Miller and P.D. Blair, Input-Output Analysis: Foundations and Extensions, Second Edition, Cambridge University Press, 2009</ref>
 +
 
 +
An industry has significant forward linkages when a substantial amount of its output is used by other industries as intermediate inputs to their production.<ref>Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009</ref>
  
 
== References ==
 
== References ==

Revision as of 15:50, 16 November 2023

Definition

Forward Linkage. The interconnection of an industry to other industries to which it sells its outputs.

In the simplest forms forward linkages are measured as summations of the appropriate Ghosh Model matrix[1]

An industry has significant forward linkages when a substantial amount of its output is used by other industries as intermediate inputs to their production.[2]

References

  1. R.E. Miller and P.D. Blair, Input-Output Analysis: Foundations and Extensions, Second Edition, Cambridge University Press, 2009
  2. Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009