Abstract
Linkage is one of the most important factors for gaining competitive advantage. Information on linkages is essential to understanding the structure of an economy, which is in turn important in formulating industry policies and business strategies. The hypothetical extraction method is used to measure the linkages by extracting a sector hypothetically from an economic system in the literature. In the previous research, however, the internal linkage (linkage within a sector) and sectoral linkages (linkage between two specific sectors) are ignored, and there is not a comprehensive framework to measure the linkages of a specific sector. Using the recently published Organisation for Economic Co‐operation and Development input‐output database at constant prices, this paper aims to resolve these two shortcomings and thereby propose a linkage measure framework to explore the linkages between the real estate sector and other sectors from a new angle. The relative and absolute linkages are termed and the total, backward, forward, internal and sectoral linkage indicators are formulated to investigate the linkages of the real estate sector from all directions. Empirical results show an increasing trend of these linkages, which confirms the increasing role of the real estate sector with economic maturity over the examined period. This framework also can be employed in other sectors.
Highlights
A sectors relationships with the rest of the economy through its direct and indirect intermediate purchases and sales are described as the sectors linkages (Miller and Lahr, 2001)
The relative total linkage indicators of the real estate sector for the seven selected countries are generated from Eq (4) and illustrated in Figure 2, which shows the changes of the total real estate linkage relative to the each national economy
The absolute linkage is a mirror image of the relative linkage and to some extent the absolute linkages just amplify the magnitude of the relative linkages
Summary
A sectors relationships with the rest of the economy through its direct and indirect intermediate purchases and sales are described as the sectors linkages (Miller and Lahr, 2001). The direction and level of such linkages present the potential capacity of each sector to stimulate other sectors. When a sector successfully enters a foreign market, it will be relatively easy for sectors that have high linkages with this sector to gain access to the foreign market (Hoen, 2002). Information on these linkages is essential to understanding the structure of an economy, which is in turn important in formulating industry policies and business strategies (Cai and Leung, 2004). The early linkage effect measures were categorized into two basic groups according to International Journal of Strategic Property Management ISSN 1648-715X http://www.vtu.lt/english/editions
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Strategic Property Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
