Forward Linkage

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Definition

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.[1]

References

  1. Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009