Forward Linkage

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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