Backward Linkages Research Articles

The impact of the transport sector on the Tunisian national economy: an input–output analysis

This paper investigates the economic impact of the Tunisian transportation sector using input–output (I–O) analysis. Our objective is to analyse the interdependencies between the transportation sector and other economic sectors, focusing on the four major modes of transportation: road, air, water and auxiliary transport services, considering them as exogenous, and then determining their impacts. Five key economic impacts are quantitatively derived over the period 2009–2017: forward linkage, backward linkage, production-inducing, supply shortage and sectorial price effects. The results show that the Tunisian transportation sector plays a crucial role in boosting other sectors of the national economy. Its robust capacity to attract and stimulate other industries makes it a key driver of economic growth and development. Road transportation has the highest production inducing effects indicating its important role in stimulating production in other sectors over the years. It also has the highest impact on employment, followed by air transport and auxiliary transport services. This underscores the importance of investing in and optimizing this mode of transportation to maximize its positive impact on the national economy.

Global value chains and disasters

We assess the disruptive potential of disasters on global value chains (GVCs) using comprehensive data on GVC trade and disasters. Analyzing 62 countries from 2007 to 2020, we find that a typical disaster reduces forward and backward linkages by at least 27% on average. Our analysis uncovers that more prolonged and intense disasters further weaken GVC linkages, with climate-related disasters being the most disruptive due to their severity and frequency. We also reveal how the positions of developing countries in GVC linkages and inadequate responses amplify these effects. Finally, we discuss policy implications for building a more resilient global production network.

IMPACT OF COMMERCIAL STRIPED CATFISH (PANGASIANODON HYPOPHTHALMUS) FARMING ON FARMERS’ LIVELIHOOD AND ENVIRONMENT IN BANGLADESH

Striped catfish, Pangasianodon hypothalamus (Sauvage, 1878), has gained popularity among the Bangladeshi commercial fish farmers because of its rapid growth and high tolerance of adverse ecological conditions. The study aims to examine the impact of farmers’ socio-economic and farming features on their livelihood outcomes of Pangas (LOP), considering the sustainable livelihood approach (SLA) and the negative impacts of commercial farming activities on the surrounding environment using a mixed-method approach. A quantitative survey was conducted using a pre-tested structured questionnaire, and qualitative data were explored through focus group discussions (FGDs), in-depth interviews (IDIs), and key informant interviews (KIIs) to assess the impact. Data were computed using descriptive statistics, rank order, correlation coefficient, and regression analysis. In terms of LOP, the highest progress was observed in human capital (87.5%), followed by physical capital (75.7%), financial capital (70%), social capital (55.7%), and natural capital (38%). The farmers’ education, experience, knowledge of fish farming, and adoption of modern farming technology correlated positively, whereas age correlated negatively with the LOP and significantly impacted the achievement of the outcomes. Farming intervention was encouraged to establish various upward and backward linkage industries and create employment opportunities, which contributed to economic progress. On the other side, rapid expansion of pangas farming impacted the surrounding environment by converting two or more croplands (37%) into a closed pond and discharging polluted water (52%) and bottom sludge (49%) into natural water bodies. Raising dikes of fish ponds caused waterlogging in the crop field during cultivation, which also hampered the navigation of aquatic animals during the breeding season. Moreover, harmful chemical discharges were blamed for the decline of aquatic animals. Therefore, it is necessary to implement sustainable aquaculture practices along with proper monitoring and evaluation processes to ensure safe aqua-food production in an environmentally friendly manner, thereby achieving sustainable development goals.

Indonesia's Position and Participation in The Global Value Chain of The Agriculture Sector

Background: The agricultural sector in Indonesia, contributing 13.7% to GDP and employing 30% of the workforce, is critical to the nation's economy. Despite its importance, the country's participation in the agricultural global value chain (GVC) faces persistent challenges, particularly in advancing agro-processing and integrating into high-value production. Purpose: This study analyzes Indonesia's GVC position and participation from 2007 to 2021, using the UIBE GVC Index and ADB ICIO data.Design/Methodology/Approach: Descriptive statistics and linear regression methods are used to assess Indonesia's forward and backward GVC participation compared to that of 62 other countries worldwide.Findings/Result: Findings reveal significant declines in Indonesia's backward participation, reflecting progress toward self-sufficiency, yet limited participation in complex forward and backward linkages underscores deficiencies in technological infrastructure and value-added exports. Moderate engagement in simple forward linkages highlights the need for targeted investments to boost competitiveness. Strategic interventions in infrastructure, advanced inputs, capacity-building, and global collaborations are essential for strengthening Indonesia's agricultural GVC role. Conclusion: To enhance GVC participation, Indonesia must address technological, infrastructure, and policy gaps. Strategic investments in agro-processing, advanced inputs, supply chain modernization, and international partnerships are critical to boosting competitiveness and export performance. Originality/Value (State of the Art): This study provides comprehensive insights for policymakers and stakeholders, emphasizing innovative strategies to enhance Indonesia’s global agricultural presence and achieve sustainable growth. Keywords: Agriculture, GVC Position, GVC Participation, Global Value Chain (GVC), UIBE GVC Index.

Development challenges and potentials in the periphery of a rapidly developing core region of Sri Lanka: A case study from the <em>Pathigoda Grama Niladhari Division</em> (GND) of Gampaha District

The purpose of a country’s national development is to take necessary measures to reduce regional development disparities within the core-periphery structure, even in districts located within rapidly developing core regions, such as the Western Province of Sri Lanka. The present study investigated whether there is a development gap between the core and the peripheral areas of the Western Province. Accordingly, the main objective of the study was to discover the development gap between the core and periphery of the relatively developed Western Province and to find out what are the development challenges in the rural periphery of a rapidly developing district. For this, the Pathigoda Grama Niladhari Division (GND) of the Divulapitiya Divisional Secretary’s Division (DSD) located at the periphery of Gampaha District, which is one of the three districts of the Western Province of Sri Lanka was selected. Under the deductive approach and mixed method, a random sampling method was applied to collect primary data. The samples were collected from 30 households in Pathigoda GND. Spatial data was analyzed and maps were developed by ArcGIS software. Descriptive and narrative methods were applied to analyze the qualitative data where descriptive analysis included percentage and mean score measures, simple regression, and correlation coefficients using SPSS software. This research verified that there are drastic differences between the center and peripheral areas of the Western core area of Sri Lanka in terms of key development related parameters and environmental issues by taking the Pathigoda GND as an example. The peripheral areas of the Gampaha district, a highly developed district and the most populous district of Sri Lanka are highly backward, and communities are marginalized due to the exclusion of the development process in the core. Lower education levels, drug addiction people, and early adolescent marriages, chronic and absolute poverty, are common issues among people in the periphery Engaging in micro-level work and obtaining micro-finance loans can be identified as the economic challenges. The entire development process of the periphery has been drastically politicized. The major environmental issues are deforestation, lack of safe drinking water, and illegal environmental activities. Lack of infrastructure and historical background in the periphery has resulted this outcome. Accordingly, the peripheral development processes should be linked with the core's development process and the forward and backward linkages of the industries should be strengthened with the periphery. Moreover, human resource development in the studied peripheral region is needed.

Inter-Industry Linkages in Economy of Himachal Pradesh: Study of Backward and Forward Linkages Using Input-Output Analysis

The industrial sector in Himachal Pradesh has become a powerhouse, contributing significantly to the state's economic growth, with MSMEs playing a dominant role. The state's commendable performance in business rankings and its leadership in the startup ecosystem underscore the crucial significance of its industrial sector in fostering innovation and creating a conducive environment for business growth and development. Understanding inter industry linkages among different sectors is critical for economic growth. Therefore, this research paper investigates the interconnectedness and interdependency among various sectors within the economy of Himachal Pradesh. Drawing upon input-output analysis methodologies, the study explores backward and forward linkages to identify key sectors driving economic development in the region. Utilizing the input-output table from the fiscal year 2017-18, the study employs both Leontief and Ghosh models to assess sectoral connections. The determination of backward and forward linkages was conducted through the application of Rasmussen and Chenery-Watanabe methods, while the identification of key sectors was accomplished using the Hirschman criteria. Findings revealed that significant interconnections are lacking in several primary activities. Industries with predominantly strong backward and forward linkages are mainly concentrated within the manufacturing sector. Examination of inter-industry connections reveals that the forward linkages of services typically demonstrate greater strength compared to their backward linkages.

Wheat in Kenya: toward self-sufficiency or toward broader development goals

The conflict between Russia and Ukraine, and the associated disruptions in global wheat supply has resulted in concern for food security throughout sub-Saharan Africa. In Kenya, which depends heavily on wheat imports to meet demand, this concern has intensified calls for self-sufficiency in wheat production. Wheat shortages have led to price hikes that hit all consumers but the urban poor in particular. To decrease reliance on imports, for both food security and for nutrition, Kenya has implemented policy measures to spur increased wheat production. This paper explores the context for increasing wheat production in Kenya to respond to increasing demand, and for addressing the needs of the stakeholders in the sector. Findings suggest that wheat self-sufficiency is unlikely to be achieved soon. Major public and private investments would be required to build the infrastructure, systems, and institutions required to support smallholders to expand and intensify their production. Millers have relied on cheap wheat imports for decades and show limited signs of willingness to support backward linkages with farmers. Critical public infrastructure (e.g., wheat seed systems, extension systems) is ill-equipped to support the growth of the wheat sector. Researchers and policy makers would better serve the interests of smallholder wheat growers by identifying feasible objectives for sustainable and equitable industry growth. We conclude with recommendations for targeted investment and interventions.

Backward and Forward Linkage Effects on Firm Survival: Evidence from East Java Large and Medium Manufacturing Survey

Firm survival in dynamic business environments is significantly influenced by the strength of a firm’s intersectoral linkages. While the impact of backward linkages on firm performance has been widely studied, their effect on firm survival remains unclear, especially in emerging economies like Indonesia. This study investigates the effects of both backward and forward linkages on the survival of manufacturing firms in East Java, Indonesia, using a survival analysis approach coupled with Survival-time inverse-probability-weighted regression adjustment (STIPWRA). Analysis of enterprise- level large and medium industry survey data from 1995 to 2015 (published by the Central Bureau of Statistics (BPS)), complemented by Input-Output tables for 2000, 2005, 2010, and 2015, revealed that while backward linkages did not significantly impact survival, forward linkages had a positive and significant impact. Firms with strong forward linkages demonstrated greater resilience and longer survival times. These findings highlight the crucial role of forward-looking strategies, like cultivating strong customer relationships and market positioning, for the long-term sustainability of manufacturing firms. Policy implications center on fostering robust forward linkages through strategic investments in infrastructure, R&D, and workforce training to enhance the competitiveness of East Javan manufacturing enterprises.

THE IMPACT OF THE TOURISM SECTOR ON THE ECONOMY OF BANTEN USING THE INPUT-OUTPUT MODEL

This study aims to analyze the role and impact of the tourism sector on the Banten economy. The analytical method used is the 2016 Banten Province Input-Output analysis, for the classification of 52 industrial sectors and 17 business fields. The approach used,; analyzing backward and forward linkages which are key and superior sectors in the Banten economy, multipliers (output, income and employment), describing the priority scale for developing tourism sectors in Banten, describing shock analysis of government policy, if there is an increase in the tourism budget and its impact on Banten economy. The results of the study show that the backward and forward linkage analysis of all tourism-related sectors is very strong with IKBL (backward linkage index) and IKDN (forward linkage index) values ​​above 1, the highest forward linkage value is 2.6 in the air transport sector. The highest value of backward linkage is 1.55 in the rail transport sector. Business fields related to the tourism sector in Banten are a key and superior sector in the Banten economy, as is the electricity sector. The highest value of the multiplier lies in income, namely; information and communication sector with a value of 5.06. The next highest multiplier value lies in the output and labor multiplier in the transportation sector. If an additional budget is given, the highest multiplier value (output, income and employment) lies in the accommodation and food and drink provision sector. So, the most appropriate policy is, if government spending and private investment, focus on opening new businesses in sectors related to tourism through prioritizing the provision of accommodation and food and drink, transportation (air transportation, rail transportation, warehousing and supporting services). transportation, postal and courier, land transportation, sea transportation, river, lake and ferry transportation), information and communication sector, corporate services and other services.

Evolving Trends in Haryana's Food Processing Sector: Growth, Structure, and Linkages

The present piece of study tries to highlight the status and structure of the food manufacturing industry of the state Haryana. The status of the industry has been analyzed in terms of its structure, growth and contribution in the total manufacturing sector of Haryana. The study utilizes ASI data (2008-22) and NIC classification to evaluate sub-sector performance. The food manufacturing sector is dominated by the grain milling industry followed by manufacturing of other food products units including bakery products, confectionary, prepared foods and many more. Fruit and Vegetables processing units, prepared animal feed manufacturing units and meat processing units remains few, limiting their contribution in the sector. Moreover, the industry has shown a very inconsistent growth trend when compared to the manufacturing sector. Higher working capital intensity of the industry in comparison to raw material intensity indicates creation of more forward linkages by the sector in terms of technological advancements and have revealed comparatively lesser backward linkages.

Forward and Backward Linkages of Wagyu Beef Production in the Local Economy

Forward and Backward Linkages of Wagyu Beef Production in the Local Economy

Morocco’s Economic Prospects: A Dynamic ARDL Simulation on Global Value Chain Integration

Abstract This paper examines how Morocco’s integration into global value chains (GVCs) impacts its economic development, addressing a critical gap in the literature on developing economies. While GVCs have transformed international trade over the past two decades and created new industrialisation opportunities, their developmental impact varies significantly across countries. Building on previous research, our study fills a significant gap by conducting a comprehensive analysis of Morocco’s GVC participation using a dynamic autoregressive distributed lag (ARDL) simulation methodology from 1990 to 2018, examining the relationship between various GVC integration measures and GDP per capita. The empirical analysis reveals three key findings : backward linkages through foreign value added in exports drive long-term economic development ; domestic value added in exports generates significant positive long-run growth effects ; and forward linkages through indirect value added in exports produce both short-run and long-run economic benefits. These results demonstrate that Morocco’s strategic GVC integration has been fundamental to its economic development. In light of these findings, policy implications are drawn to enhance Morocco’s global competitiveness and optimize development benefits through targeted GVC participation strategies. The research emphasizes how balanced integration across different value chain linkages promotes sustainable economic growth in developing countries.

Perbandingan Sektor Potensial Perekonomian Kabupaten Tanah Bumbu: Analisis Input-Output Tahun 2010 dan 2016

This research aims to identify potential sectors based on linkage analysis, dispersion effect analysis, multiplier analysis and comparison of potential sectors in Tanah Bumbu Regency economy. It is quantitative research using Input-Output analysis with support IOW. Data used is from Badan Pusat Statistik of South Kalimantan Province and Badan Pusat Statistik of Tanah Bumbu Regency. Forward linkage electricity, gases and fresh water sector, backward linkage construction shifted to manufacturing idustry sector. Disparsion effect electricity, gases and fresh water sector. Multiplier manufacturing industri sector. The results showed that 2010 and 2016 saw shifts in potential sectors Tanah Bumbu Regency economy.

Analysis of the Forward and Backward Linkages of Agriculture, Forestry and Fisheries Sectors in Central Java Province

This study aims to analyze the linkages forward and backward sectors of Agriculture, Forestry and fisheries in the economic development of Central Java province. This study uses data Input Output table of Central Java in 2016. The method of data analysis used in this study is Input-Output Analysis. The results showed that the subsector in the Agriculture, Forestry and fisheries sector that has the highest value of direct and indirect backward linkage is the livestock subsector. This means that the livestock subsector means that each increase in final demand in the livestock subsector by 1 unit will increase the output of other economic sectors that are used directly or indirectly as inputs to the livestock subsector by 1.5330 units. On the other hand, the value of direct and indirect future linkages in the agricultural, forestry and fisheries sectors is the highest, namely the food crop subsector with a value of 1.3903. This means that every increase in output in all sectors of the economy by 1 unit will increase the output of the food crop subsector by 1.3903 which is used directly as input for all sectors of the economy. Keywords: Backward Linkage, Forward Linkage, Economic Development, Agriculture, Forestry And Fisheries Sectors

Projected Economic Impact of Sediment Removal Programs at Priority Locations

Removing marine sediment is a Ministry of Marine Affairs and Fisheries program regulated by Government Regulation No. 26 of 2023. Five priority locations have been designated for the removal of marine sediment: Riau Islands Province, West Java Province, East Kalimantan Province, Central Java Province, and East Java Province. This study uses input-output analysis to measure and compare the economic impacts of sediment removal activities on the economies of these five provinces. The input-output table results show that the highest output multiplier for sediment removal activities is in East Kalimantan Province with a value of 1.48, while the lowest is in the Riau Islands Province with a value of 1.22. The highest income multiplier is also found in East Kalimantan Province with a value of 0.3710, followed by Riau Islands Province with a value of 0.3513. In East Kalimantan and Riau Islands, sediment removal is a key sector with strong forward linkages to other sectors but weak backward linkages. One strategy to enhance the economic impact of sediment removal is for the government to spend non-tax state revenue (PNBP) from this activity on key sectors in each province.

Building Upon “Foundationalism” to Achieve the Objectives of Contemporary Science: How this can Lead to Faster Scientific Progress and Inclusive Science

This paper is one of our most important ones in the core philosophy of science, and one that we expect to stand science in extremely good stead as well. We believe this can move the needle and push the envelope as well, and lead us to what we have always called “scientific progress at the speed of light”. We naturally commence this paper by tracing the history of the term “foundationalism” itself, right from the time of the Ancient Greeks, renaissance and enlightenment thinkers, and finally to the modern and contemporary ones. Types of foundationalism such as strong and weak foundationalism, modest foundationalism, and then finally anti-foundationalism, internalism and externalism are also discussed and dissected threadbare along with allied and related concepts such as circular logic and reasoning, regress and infinite regress, all of which form a part of epistemology. The core concepts forming a part of this paper such as forward linkages, backward linkages, and traceability matrices are also discussed. We follow this up with the core principles of this paper, and discuss the ideal and recommended direction of research, including the ideal nature of research, primary research, secondary research, basic and applied research, and cross-cultural collaboration including vertical and horizontal collaboration as well. This paper is also much more importantly linked to our papers on sociocultural change, pedagogy, scientific methods, and other papers in the social sciences for maximum impact and efficacy. It is therefore an important part and parcel of our globalization of science movement, and one that will help realize our overall goals and mission greatly.

The productivity spillover effect of foreign divestment: Evidence from Chinese industrial enterprises

The productivity spillover effect of foreign divestment: Evidence from Chinese industrial enterprises

Horizontal and vertical foreign direct investment linkages, absorptive capacity and domestic investment: evidence from Indonesian plant-level data

PurposeThis study examines the effect of horizontal and vertical foreign direct investment (FDI) linkages on the investment decisions of domestic plants. It explores this link for plants in a developing country, where the dynamics of FDI spillovers on domestic investment choices are distinct from those in developed countries. It also adds to the literature by examining the role the absorptive capacity of plants plays in this nexus, enriching our understanding of the interaction between FDI and the investment choices of domestic plants and providing insights for policymakers and managers seeking to maximize the positive effects of FDI spillovers.Design/methodology/approachThis study specifies the dynamic investment equation using the Euler and Q models. This equation is estimated using the first-difference and system generalized method of moments GMM estimators, which allow us to address persistency, endogeneity and unobserved plant-specific effects. FDI exposure proxy, calculated by weighing the FDI engagement variable by firm size, captures the strength of foreign equity participation in an industry and time. Input–output (IO) tables are used to calculate the proxies for horizontal and vertical (backward and forward) FDI. Total factor productivity is calculated using a method advocated by Olley and Pakes (1996) that allows us to control for selection and simultaneity.FindingsWe find that FDI inflows into both the domestic plants’ own industry and the input-supplying industry significantly boost the capital accumulation of the average domestic plants. Differentiating plants based on their absorptive capacities reveals that the presence of foreign firms significantly increases capital deepening for domestic plants with high absorptive capacity within their own industry (horizontal linkage) and in industries that supply inputs to the FDI-exposed industry (backward linkage). However, it leads to a decrease in capital deepening for high absorptive capacity domestic plants in industries using inputs produced by the industry exposed to FDI (forward linkage).Research limitations/implicationsThese findings have implications for policymakers and managers who aim to design incentives to maximize the positive spillover effect of horizontal and vertical FDI linkages on the capital deepening of domestic plants. Exploring additional mechanisms that could play a role in this nexus, separately for plants in different industries (such as the industries in which the country has a comparative advantage), may be fruitful.Originality/valueTo our knowledge, the relationship between the investment behavior of the domestic plants and FDI linkages has not been examined for a developing country. It is useful to explore this link in developing countries, as the investment choices of plants in these nations may be impacted differently by FDI spillovers than those in advanced nations. This study further contributes to the literature by investigating whether the plants’ absorptive capacity affects the nexus between FDI linkages and investment decisions of the domestic plants. The findings are valuable for policymakers and managers who aim to increase plants’ capital accumulation in developing countries.

Understanding export-generated employment in India

International trade can play a catalytic role in economic development and employment enhancement. To understand the employment impact of India’s pattern of trade, we use a structural decomposition analysis utilising the World Input – Output Database. Distinguishing between final and intermediate exports from India, we quantify the domestic employment effect during 2000–14. We show that a shift in final exports’ composition towards sectors and sub-sectors with lower employment generation potential led to a negative employment effect. However, changes in international production sharing have largely had a positive impact on employment in India. Our structural decomposition analysis is complemented with a panel regression that tracks the employment effect of exports through backward linkages. We find significant differential impacts in India’s bilateral trade with middle-income versus high-income countries. While bilateral backward linkages from exports to middle-income countries enhanced employment in India, exports to high-income countries did not yield a positive employment effect.

How does participation in Global Value Chains affect embodied carbon emissions in international trade? New insights from cross-country panel data analysis.

Global Value Chains (GVCs) significantly influence international trade and environmental outcomes. Despite the economic benefits of GVCs, their impact on the environment remains under-examined. This study analyzes the effects of GVC participation (considering forward and backward positions) on total carbon emissions embodied in exports (TEEE) and imports (TEEI). Utilizing panel data from 65 economies spanning 1995 to 2018, we apply input-output matrices and the system generalized method of moments (GMM-SYS) approach. Our results indicate that GVC participation generally is associated with reductions in TEEI and increases in TEEE, with backward participation exerting a more substantial impact. Furthermore, we observed asymmetrical impacts of GVC participation between developed and developing countries. Developed nations tend to reap greater benefits from GVC in terms of diminished CO2 emissions associated with imports, as well as notable CO2 reductions in both exports and imports, particularly when forward participation is the focal point. Conversely, developing countries grapple with heightened environmental burdens stemming from their engagement in backward linkages.