Intersectoral Linkages Research Articles

CO 2 emissions and intersectoral linkages. The case of Spain

This paper proposes a methodology to identify the most relevant productive transactions in terms of CO 2 emissions in the most polluting sectors of an economy and applies this methodology to the Spanish case. Emissions can be related to the CO 2 emissions intensity of sectors (CO 2 intensity factor), to the size of the economy's flows (scale factor), to the input–output productive relationships within an economy (technology-production factor) and to the structure of final demand of different sectors (demand factor). A formal analysis of these factors is carried out by means of an input–output framework combined with a sensitivity analysis. By considering key sectors and relevant transactions in terms of CO 2 emissions, the most effective policy measures aimed at reducing CO 2 emissions can be identified.

Developing Countries and GATS Negotiations: The Case of India

The Doha Round of GATS negotiations is on-going. In this context, this paper argues that developing countries such as India have created niche for themselves in particular services exports and, therefore, should actively participate in the negotiations to remove barriers in sectors/modes of their trade interest. It identified various strategies for negotiations for developing countries, such as formation of coalition on particular issues/sectors/modes with like-minded trading partners and offering binding commitments in Mode 3 in return for greater market access in Modes 1 and 4. The commitments of developing countries should take into account the inter-sectoral and intermodal linkages. Lastly, the paper stresses on the need for complementary domestic reforms which would enable developing countries to gain from multilateral liberalization.

Intersectoral Linkages and Key Sectors in China, 1987–1997

Since the pioneering work by Rasmussen and others in the 1950s, alternative measures of linkages have been developed, with the aim of examining the interdependence in production structures and in identifying key sectors in an economy. Our study proposes a comparative analysis of traditional and modern methods, by applying them to the case of China between 1987 and 1997. It finds that backward and forward linkages have generally increased in China, denoting an increase in intersectoral interdependence, with some sectors (e.g. agriculture, food, textiles and chemicals) being dominant in this process. With regard to the identification of key sectors, hypothetical extraction methods provide superior results compared with traditional methods. Agriculture, textiles, chemicals, building materials, primary metals, machinery, commerce and other services are all recognized as being the key sectors by both the total linkage and pure linkage methods.

A Typology and Assessment of Multi-sector Regional Economic Impact Models

Loveridge S. (2004) A typology and assessment of multi-sector regional economic impact models, Reg. Studies38, 305-317. This paper provides a summary and critical review of the types of multi-sector models with inter-sectoral linkages commonly used to predict the total impact of an event (plant opening, closing or policy change) on the regional economy. The following model types are included: economic base; input-output; social accounting matrix; integrated econometric/input-output; and computable general equilibrium models. Appropriate uses of the various modelling approaches are presented along with some general operating principles and ethical considerations. The paper concludes with directions for future research. Loveridge S. (2004) Une typologie et un bilan des modèles des impacts économiques régionaux multi-sectoriels, Reg. Studies38, 305-317. Cet article cherche à faire le résumé et la critique des typologies de modèles multi-sectoriels qui ont des liens intersectoriels et dont on se sert fréquemment afin de prédire l'impact global sur l'économie régionale d'un effet ponctuel (à savoir l'ouverture d'un établissement, la fermeture, le changement de politique). On inclut les typologies de modèles qui suivent: base économique, échanges interindustriels, matrice de comptabilité nationale, économétrie/échanges interindustriels intégrés, et équilibre général sur ordinateur. On présente des façons d'employer les divers modèles qui conviennent, conjointement avec des principes généraux et des considérations ethiques. Pour conclure, l'article propose la voie à suivre pour ce qui est de la recherche future. Loveridge S. (2004) Eine Typologie und Bewertung vielfach gefächerter regionalwirtschaftlicher Auswirkungsmodelle, Reg. Studies38, 305-317. Dieser Aufsatz bringt eine Zusammenfassung und kritische Besprechung der Typen mehrfach gefächerter Modelle mit intersektorellen Verknüpfungen, die weithin dazu benutzt werden, die Gesamtauswirkung eines Ereignisses, (sei es Eröffnung, Schließung oder Betriebsumstellung) auf die regionale Wirtschaft vorherzusagen. Die folgenden Modelltypen werden berücksichtigt: wirtschaftliche Grundlage, Aufwand/Ertrag, Sozialbedeutungsmatrix, integrierte ökonometrische Aufwand/ Ertrags- und berechenbare allgemeine Gleichgewichtsmodelle. Es werden geeignete Anwendungen der verschiedenartigen Modellansätze sowie allgemeine Arbeitsprinzipien und ethische Erwägungen vorgelegt. Der Aufsatz schließt mit Hinweisen auf weitere Forschungsaufgaben. Loveridge S. (2004) Una tipología y evaluación de modelos multi-sectoriales que analizan el impacto económico regional, Reg. Studies38, 305-317. Este artículo ofrece un resumen y un examen crítico de los tipos de modelos multi-sectoriales con enlaces inter-sectoriales comunmente utilizados para predecir el impacto total de un acontecimiento (apertura de una planta, cierre, o cambio de política) en la economía regional. Se incluyen los siguientes tipos de modelos: base económica, input- ouput, matriz de contabilidad social, econométrico/input-output integrado, y modelos contables de equilibrio general. Se presentan las aplicaciones apropiadas de los diversos enfoques de modelización junto con algunos principios operativos generales y consideraciones éticas. El artículo concluye con recomendaciones para futura investigación.

A metropolitan input-output model: Multisectoral and multispatial relations of production, income formation, and consumption

This study formulates a metropolitan input-output model (hereafter MIO) that incorporates the multispatial and multisectoral nature of an urban economic system. Two main features can be highlighted which distinguish the MIO model from other input-output models as applied to the urban context. The MIO model integrates information on intrametropolitan flows of people, commodities and services through the embedding approach within an input-output framework. Accordingly, the model has been built in one methodological framework (input-output framework) and operated by using one calculation system (inversion of input coefficient matrix), taking interspatial and intersectoral linkages into consideration. Another unique characteristic of the proposed model is that the input coefficient matrix of the MIO model consists of three partitioned matrices that have different spatial dimensions: interindustrial technical coefficients by place of production; the income coefficients by place of residence, and consumption coefficients by place of consumption. The MIO model can be applied for the impact analysis of a variety of urban policy evaluations. The main sets of results are derived as outputs from the MIO model: gross output and employment by zone, by sector, by income group, and by repercussion type.

Lessons from the margins of globalization: appreciating the Cuban health paradox.

It is widely recognized that Cuba, despite poor economic performance, has achieved and sustained health indices comparable to those in developed countries--the Cuban Paradox. There has been, however, remarkably little scholarship evaluating how this has been accomplished, especially during a period of extreme economic hardship. Cuba's exclusion from the mainstream of "globalization," moreover, allows us to gain insights into the population health impact of policies that have accompanied globalization. Cuba's experience challenges the conventional assumption that generating wealth is the fundamental precondition for improving health. As peoples around the world search for cost-effective ways to improve well-being, they might want to learn how alternative public policy approaches, such as those used in Cuba, may be effective. We therefore reviewed the literature on the health-wealth relationship in this globalizing era; then systematically examined public policy in Cuba, not only for health services (financing, vertical and horizontal integration, prevention and primary-care focus, inter-sectoral linkages, etc.) but for non-medical determinants of health as well. These included education, housing, nutrition, employment, etc. plus the community mobilization and social cohesion that the Cuban system has generated. It appears that the active implementation of public policy affecting a wide variety of health determinants explains the Cuban paradox, and that the international community can learn from Cuba's experience. The prospect for healthy public policy can thus exist within, rather than only on the margins of globalization. The importance of monitoring how Cuba sustains such policies as it faces growing challenges in this globalizing era is increasingly worth observing.

Distributive Justice: An Economist's Perspective

In Democratic Distributive Justice, Ross Zucker (2000)1 argues that a capitalist economic system constitutes a commu nity of agents with certain common aims; that the individuals who comprise this community contribute through their interde pendent activity to the promotion of those shared aims; and that the intrinsically interdependent character of most economic activity establishes a principle of distributive justice which enti tles every participant in the economy to an equal share of a part of the income and wealth created by that activity According to Zucker, the principal common aim of all agents is the preser vation and expansion of capital; for all income originates in an expanding circuit of money and production. Interruption of that circuit damages workers and capitalists, consumers and sell ers, alike. The perpetuation of this circuit depends in large part on socially organic activities. First, production is by its nature col laborative and grounded in intersectoral linkages. Second, no production process can continue unless are buyers for what that process creates. Third, con sumption patterns are themselves socially formed. And, fourth, so are the work habits upon which efficient pro duction depends. The social character of the circuit of capital, Zucker con tends, justifies egalitarianism in the dis tribution of part of the aggregate income. His argument can be read as an answer to Margaret Thatcher's famous remark, in a 1987 interview, that there is no such thing as society. There are [only] individuals] . . . and . . . families. Zucker's argument is novel and carefully developed. It is also extremely topical. Over the past two decades income and wealth inequality in the US have gone through the roof (see Bernstein, Mishel & Brocht, 2000). A similar, though less pronounced, trend is evident in Western Europe, where economic policy discussions center on whether, or how quickly, the allegedly more efficient American model should be imported. The same issues have arisen in connection with the transition to capitalism of the economies of Eastern Europe and the former Soviet Union. Recent financial scandals in the US have cast a discomfiting light on the ethical ramifications of exploding inequality, and some observers have begun to worry that the re-emergence of Gilded Age disparities in economic well-being will have profoundly destabilizing social consequences (see Krugman, 2002). Economists are notoriously self-conscious about the scien tific pedigree of their discipline. Most of us would rather talk about efficiency than about justice, and questions of distributive justice concern precisely the sort of normative issues that econ omists prefer to avoid. The conventional neo-liberal wisdom maintains that is a trade-off between efficiency and equal ity?that the latter can be enhanced only at the expense of the former. But this view is a distortion of the orthodox neoclassi cal position, which is agnostic on the desirability of alternative distributive regimes. Indeed the reluctance of orthodox economics to engage the problem of distributive justice is reflected in the ultimately vacuous criterion by which it evaluates economic out comes?Pareto optimality. A particular allocation of resources is said to be Pareto optimal if no agent's well-being can be improved without reducing the well-being of some other agent. Leaving aside the fact that the condi tions required to generate Pareto opti mal outcomes are so restrictive that they can never obtain in actual market economies, the Pareto criterion is an extremely weak prescriptive device. It says only what is obvious: that if resources can be reallocated so as to make someone better off without caus

Developing a Euro Area Accounting Matrix: Issues and Applications

An important part of external or policy shocks is transmitted throughout the economy via various channels of transactions. To analyse such channels and to predict the impact of shocks, it is expedient to know who recently exchanged what with whom and for what purpose. The most appropriate format for presenting intersectoral linkages at the national level is in a National Accounting Matrix (NAM). A NAM is defined as the presentation of a sequence of integrated accounts and balancing items in a matrix that elaborates the linkages between a supply and use table and institutional sector accounts. This paper compiles the first pilot Euro Area Accounting Matrix (EAAM) and considers its usefulness for the euro area's economic analysis. It also reports on the solution of a number of aggregation and consolidation issues that arise when constructing a multi-country accounting matrix.

New Zealand primary health care policy and the role of a non-government organisation

I was asked to make the presentation this paper is based on1 following the collaboration between La Trobe University and Health Care Aotearoa over several years. La Trobe is the home of the Quality Improvement Council, of which Health Care Aotearoa is a member. That Council has been one of the international partners who have given validation and inspiration for us in Aotearoa/New Zealand in the field of community-based primary health care. My own background, as a Methodist minister for 20 years, followed a life-transforming year as an 18-year-old volunteer in Sarawak in 1969, and exposure internationally to struggles for social justice. In recent years I have become more directly involved in political engagement, at both the local body and national level, as an expression of my understanding of community development and health. I am Chairman of one of New Zealand?s 21 District Health Boards and am relishing the opportunity to lead a regional health organisation as it builds intersectoral linkages, embraces excellence in the delivery of health services, and addresses issues of disparities in health outcomes. I continue to be involved in national leadership of a number of non-government organisations (NGOs), and am taking a leading role in building a new national entity that can encompass the whole non-government organisation sector in New Zealand. All this work arises directly from the experiences and insights described in this paper.

Inter-Sectoral Linkages in Haryana's Income: A Temporal Analysis

Based upon secondary time-series data for 29 years since 1970-71, an attempt was made to examine the nature of structural changes in Output and employment along with inter-sectoral linkages in the income of lhe Haryana state. Out of the two indexes (viz θ due to Moore (1978) and ξ (based upon Entropy measure)} adopted for measuring the pace of structural change, the latter turned out to be relatively superior because of its higher sensitivity to temporal changes. Value of the index pointed towards voluminous changes to have occurred in the Structure of Haryana's income. But, commensurate changes have not taken place in the structure of employment; through-out the study period, the share of secondary' sector in employment has remained virtually static. An index of structural imbalance obtained through, indicated that the latest four years' periad (1995-1998) under liberalisation regime has undergone structural distortions to a severe extent. Further, the nature of inter-sectoral linkages was gauged by subjecting trend-statianory series on income from each of the major aggregates to distributed logged modelling. The analysis revealed the presence of strong inter-linkages of income from each of primary and teritary sectors with the aggregated income. However, the all-important secondary sector has failed to exhibit perceptible forward and backward linkages with income from other sectors. Agro-processing industrialisation, especially in rural pockets, may act not only as a booster for the secondary sector but also assist in curbing the severity of structural distortions in the state's economy.

The Structure of the Sri Lankan Economy

Sri Lanka is a small island economy without much of natural resources. In spite of a troubled domestic environment in recent times, the country has recorded an impressive peiformance in the areas of Average Life Expectancy, Adult Literacy rates, Infant Mortality Rates and similar indices of develapment. However, economic growth, sustained employment generation, reasonable price stability, balance in the external sector, and reduction in income inequality have not been adequate though to proper economy into the league of Developed Nations. The objective of this paper is to study the inter-sectoral linkages of this economy using Multiplier Analysis to understand his structure by measuring the degree of interconnectedness of its different sectors, since the effectiveness of policy measures is expected to depend on the degree of interconnectedness of an economy. For this purpose, the Extended Input-Output Methodology combining the Leontief (1941) and Ghosh (1958) Models has been used. The results show that the various sectors of the economy are weakly integrated, which is perhaps the reason why the effects of growth and development oriented policies have not percolated down throughout the economy. The development of strong inter-sectoral linkages is therefore a necessary prerequisite for the country's overall economic development.

Total Factor Productivity and Processed Food Trade: A Cross-Country Analysis

Processed food products account for a growing share of global agricultural trade. Growth in total factor productivity and intersectoral linkages between the agricultural and processed food sectors are hypothesized as factors explaining this phenomenon. Estimating the neoclassical trade model using an internationally comparable database, we find evidence of (a) Hecksher-Ohlin (factor endowments) and Ricardian-type (technology) effects in agricultural and processed food trade, and (b) transfer of comparative advantage from the primary agricultural sector to the processed food sector. Thus, public policies protecting primary agriculture can adversely affect processed food sectors, while those supporting R&D efforts can bring about dynamic comparative advantage.

Broad‐based Agricultural Development versus Food Self‐sufficiency: A General Equilibrium Analysis in India

Intersectoral linkages are analysed using a CGE model based on a SAM constructed from Indian national accounts data for 1988–89. The model includes the rural non‐farm sector, public sector production and aspects of public policy. Evidence supports the arguments of Chakravarty (1987) and Ahluwalia (1986) regarding the importance of broad‐based agricultural development as opposed to increased production in the food sector alone aimed at achieving food self‐sufficiency.

The land-use effects of a forest carbon policy in the US

The inclusion of forest sinks as a carbon dioxide (CO 2) mitigation strategy at the climate negotiations in Marakech (November, 2001) is expected to lead to increased investments in forest establishment and management by many developed countries. Previous studies in this area have typically focused on market impacts in the forestry sector, such as changes in production, consumption, prices, and trade, as a result of sinks. Here, we consider their inter-sectoral linkages and examine the potential economy-wide impacts of a forest carbon policy for the US over the next 20 years. Specifically, we employ a dynamic computable general equilibrium (CGE) model to simulate the scenario of a global forest carbon policy with and without US participation, and analyze their impacts on national economic welfare and land use distribution among the different sectors in the US. Our findings suggest that the establishment of carbon plantations in the US will have a small and favorable impact on the overall economy and particularly, on the farm and forest sectors. Alternatively, US inaction with regards to ratifying the Kyoto Protocol is likely to have adverse consequences for the economy as a whole, particularly when taking into consideration the loss of benefits foregone.

Indra-Industry Trade, Endogenous Technical Change, Wage Inequality and Welfare

By using alternative intra-industry trade models (1. New goods cannot be introduced into the economy; 2. The possibility for a set of capital goods available in the economy to vary; the models consider the existence of intersectoral linkages), I show by means of Applied General Equilibrium (AGE) analysis that trade rises wage inequality between skilled and unskilled workers; but the impact on wage inequality is far larger, when countries are assumed to exchange differentiated capital goods. The latter result has been obtained by using an imperfect competitive model, which embodies a sector bias technological change that arises from trade. In addition, the gains from trade, insignificant under the standard trade hypotheses, are extraordinarily large when endogenous technological change is taken into account. The main policy conclusion is that if policy makers of flexible wage economies introduce trade barriers to reduce wage inequality, these protective measures, by affecting the diffusion of technology, would cause a large welfare loss. [D58, f12, F43, J3, O3]

Towards a Better Public Housing Service for People with Mental Illness: The Importance of Intersectoral Linkage

Objective: To discuss issues relevant to the equitable delivery of public housing services to people with mental illness. Strategies adopted by Queensland Department of Housing to address these issues and to improve services are described, and matters of particular relevance to mental health professionals are highlighted. Conclusions: Formal interagency service agreements between the Departments of Health, Housing and Disability Services, appropriate training programs, and case conferencing strategies can enhance the delivery of appropriate housing services to people with mental illness. Promotion of active interagency collaboration by mental health professionals will facilitate these strategies.

Identifying Linkages with a Cluster-based Methodology

Although many methods for studying linkages between economic sectors exist, most methods only analyse the linkages between a specific sector and all other sectors, or the effects of all sectors on the economy as a whole. Cluster analysis may be helpful to analyse which sectors are strongly connected to each other, when no specific sector is given in advance. The present article reviews how cluster analysis contributes to the analysis of intersectoral linkages. Furthermore, it describes several possible identification methods of these clusters. After selecting the best method, the article provides an index that can be used to compute the degree of similarity between clusters in different regions, countries, or time periods.

Agriculture and Rural Development: Need for Reforms

There has been a significant slowdown in agricultural growth and decline in poverty in the 90's. The reasons include stagnating yield levels in irrigated pockets, non-realisation of potential growth in non-irrigated regions, lack of sufficient buoyancy in the non-farm sector, decline in rural non-agricultural employment, casualisalion of labour, rising relative cereal prices etc. In this scenario, major new initiatives are needed to spur growth in agriculture and thereby induce growth in other sectors through inter-sectoral linkages. Reforms are needed in pricing policy, trade policy and land relations. The major pre-requisite for agricul1ural growth is investment in irrigation, rural infrastructure, R&D in unirrigated regions. Due to significant gestation lags in these sectors, private investment is unlikely to flow in and public sector investment is a must. Resources for public investment should be raised by curtailing and diverting resources from current expenditure like food, fertiliser and power subsidies through better targeting and rationalisation of tariffs. To this end, reforms on pricing of inputs and outputs (supported procurement prices) are needed. The needed trade policy reforms include export emphasis on non-food crops like milk and milk products and fruits and vegetables and continuation of self-sufficiency policy in case of basic food crops. These reforms need to be supplemented by rigorous land reforms to realise the full potential of benefits from trade liberalisation.

Modeling the Regional Economy: A Regional Econometric Input-Output Approach

In an attempt to model the regional economic system of Styria, an integrated approach was pursued which combines econometric and input-output modelling techniques. Applications of the model in impact analysis and forecasting thus take into account both intersectoral linkages as well as the dynamic behaviour of the variables. The paper first compares different strategies to integrate econometric and input-output modules and then outlines the basic characteristics of the model, including a short description of its extensive regional data base. Examples for model applications and suggestions for further improvements and extensions of the model are also presented.

Community participation in health: perpetual allure, persistent challenge.

The concept of community participation continues to capture the attention of international health policymakers and analysts nearly a quarter of a century after it was formally introduced at the Alma Ata Conference. This paper reviews trends in the participation literature of the 1990s, drawing examples primarily from Latin America. The following topics are discussed: sustainability, new methods for operationalizing and evaluating participation, the significance of local and cultural variability in determining outcomes, participatory self-determination as raised in the social movements literature, the increasing importance of intersectoral linkages, and continuing impediments posed by biomedical ideologies and systems. While the rhetoric and practice of participation have become fully integrated into mainstream health and development discourses, the paper concludes that ideological and political disagreements continue to divide pragmatists, who favour utilitarian models of participation, from activists, who prefer empowerment models.