Sectoral Linkages Research Articles

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

How the Global Burden of Animal Diseases links to the Global Burden of Crop Loss: a food systems perspective.

Food systems comprise interconnected webs of processes that together transform inputs (land, labour, water, nutrients and genetics, to mention just a few) into outputs such as nutrition and revenue for human societies. Perfect systems do not exist; rather, global food systems operate in the presence of hazards, biotic and abiotic alike, and under the constraint of limited resources to mitigate these hazards. There are, therefore, inefficiencies in these systems, which lead to losses in terms of monetary, nutritional, health and environmental values and create additional negative externalities in the health, social and environmental spaces. Health hazards in the food system do not respect arbitrary distinctions between the crop and livestock sectors, which are highly interconnected. These linkages exist where one sector provides inputs to another or through substitution effects where supply in one sector influences demand in another. The One Health approach advocates investigating the intersectoral hazards in a highly interdisciplinary manner. This article provides a conceptual framework for integrating the methodologies developed by the Global Burden of Crop Loss and Global Burden of Animal Diseases initiatives to generate burden estimates for hazards in food systems that better account for interconnectivity and foster an improved understanding of food systems that is aligned with the interdisciplinary nature of the One Health approach. A case study related to maize and poultry sector linkages in the wider context of public and environmental health is presented.

Melawi Regency Economic Pillar: Building from Tradition to Innovation

Purpose: The design of the industrialization planning pattern in Melawi Regency aims to build a strong foundation for sustainable economic growth through a series of integrated analyses. This includes analyzing the strengths of the sectors that support the local economy, identifying the industrial sectors with the greatest potential to develop the Melawi Regency economy, and evaluating industrial products that could be developed to maximize their positive impact on the economy. These objectives are designed to produce strategies that not only increase the production and competitive capacity of local industries but also ensure that growth is inclusive and provides broad benefits to the people of Melawi. Method/design/approach: This study analyzes Melawi Regency's industrial sub-sectors using Location Quotient and Shift Share Analysis to identify specialization and assess performance. It highlights growth areas, sectoral linkages, and comparative advantages for strategic development and policy guidance. Results and conclusion: This research shows that Melawi Regency has significant potential in the agriculture, forestry, and fisheries sectors, as well as the processing industry. Rubber and palm oil were identified as superior products. Development efforts should focus on increasing added value through product diversification and infrastructure upgrades. Development gaps between regions need to be addressed to improve national welfare and stability. The analysis suggests the integration of development strategies that harness local potential and strengthen key economic sectors for long-term growth. Originality/value: This research comprehensively analyzes the potential of the industrial sector in Melawi District, focusing on the identification of regional superior products and the development of strategic plans integrated with national policies and local needs. The value of this research includes providing insights for strategic decision-making in local economic development, increasing production capacity and economic diversification, and strengthening cooperation between sectors to support inclusive and environmentally friendly economic growth.

Examining the Relationship between Economic Diversification and Sectoral Linkages: Insights from the Iraqi Economy

Economic diversification is considered one of the important factors in driving economic growth, sectoral growth, and creating economic linkages between the sectors of the national economy. In Iraq, the relative importance of the oil sector in the gross domestic product is higher compared to other sectors such as agriculture and industry, where economic diversification and sectoral linkages are absent, as Iraq is considered a rent-based, one-sided country that lacks diversification of the export and production structure. This research assesses the status of economic diversification in Iraq and the role of intersectoral linkages in facilitating or hindering this process. Overall, the research followed a structured, inductive approach, utilizing secondary data sources and a combination of descriptive and analytical techniques to address the research objectives. Results showed that the relative contribution of the agricultural sector to GDP in 2010 was 5%, and for the industrial sector it was 2.3%, while the direct forward linkages of the agricultural sector were 4%, for the industrial sector 14%, and the indirect linkages were 1.59% for the industrial sector and 1.74% for the transport and communications sector. The research proposes establishing a broad-based manufacturing industry in Iraq that is driven by intersectoral linkages and dependence on domestic economic resources.

An “Extended method” for measuring intersectoral linkages: The case of the Greek tourism sector

This paper assesses the intersectoral linkages of the tourism sector of the Greek economy using an extended version of the hypothetical extraction method, which allows the intersectoral effects of the labor force reproduction process to be taken into account, and data from the symmetric input-output table for the year 2015. The findings of our analysis show that the role of tourism in the Greek economy is more as a seller of inputs in other sectors than as a buyer of inputs, a finding that can be reduced to the high participation of the tourism product in the labor force reproduction process. In other words, an increase in demand for the tourism product cannot bring about a strong growth in the economy, since the sector's dependence on inputs from other sectors for its operation is low and, therefore, the increase in the tourism product does not lead to a large increase in the production of the other sectors. On the contrary, an increase in demand for the products of other sectors will lead to a strong growth of the tourism sector, since the dependence of other sectors on inputs of the tourism sector is high. The interdependencies in the production structure of the Greek economy show that the tourism sector cannot be the basis of a growth policy (i.e. by stimulating tourism demand), but, conversely, the growth of the Greek economy will lead to a significant increase in its tourism sector.

Staphylococcus aureus as a foodborne pathogen in eggs and egg products in Indonesia: A review

Staphylococcus aureus causes foodborne disease in eggs. It is characteristic of pathogenicity and harmful to human health if contaminated eggs and products are contaminated from pre-production at the manufacturer until post-production. S. aureus is a Gram-positive bacterium normally present in the skin and mucosa of humans and other animals. Methicillin-resistant S. aureus (MRSA) is a strain of S. aureus that is resistant to several types of antibiotics, including tetracycline, amoxicillin, ampicillin, ciprofloxacin, ceftriaxone, beta-lactam, and azithromycin. Impure S. aureus infections in eggs and processed egg products have been reported in Indonesia for for 5 years. However, only a limited number of cases have been reported. Based on the Indonesian National Standard, S. aureus contamination in fresh poultry eggs is limited to <1×102 colony forming unit/g, eggs processed from salty eggs as much as <1 × 101 colonies/g, and food processed from base eggs, e.g., custard a must negative/gram. One Health is an approach to collaborative cross-recognized sector linkages between human health, animal health, and the environment, which should be managed holistically. It is expected that one health approach will be able to prevent and control the risk of S. aureus contamination in eggs and processed egg proucts. This review describes the incidence of S. aureus and MRSA in Indonesia compared with other countries. This review provides information on the One Health approach for preventing and controlling S. aureus contamination of eggs in Indonesia so that it can be adopted elsewhere. Keywords: eggs and egg products, foodborne, Indonesia, methicillin-resistant Staphylococcus aureus.

Driving forces of CO2 emissions from the transport, storage and postal sectors: A pathway to achieving carbon neutrality

In tandem with the urbanisation process, China's transport sector is currently experiencing rapid development and was ranked third out of all the industrial sectors in terms of generating CO2 emissions in 2020, which poses a huge challenge to achieving carbon neutrality. Primarily using the energy consumption data from China's transport, storage and postal sectors (TSPS) and input and output data between 2007 and 2020, this study first uses the Tapio decoupling model to evaluate the decoupling effect in the TSPS. Structural decomposition analysis is then applied to explore sectoral linkages and decompose the forces driving CO2 emissions. Additionally, we explore the main determinants of the energy structure effect and final demand in terms of energy consumption and industrial sector demand. Our results show that the target sector experienced a weak decoupling, which implies that the low-carbon transformation of this sector became increasingly apparent. Factor decomposition shows that improvements in energy intensity, energy structure and the production input and output structure have contributed significantly to reducing CO2 emissions, but these gains have been largely offset by final demand, resulting in a net reduction of 27.97 million tons from 2007 to 2020. The increased usage of low carbon forms of energy, such as natural gas, is the key driver behind the emissions reduction effect in terms of the energy structure. However, the higher final demand from the construction sector and the wholesale and retail trades are the main factors that have increased CO2 emissions. By adopting a sectoral and energy structure decomposition perspective, our study can be used to provide guidance to governments seeking to pursue carbon-reduction policies to achieve carbon peak and carbon neutrality, in the TSPS in particular.

Scenario-based multi-criteria evaluation of sector coupling-based technology pathways for decarbonization with varying degrees of disruption

The concept of sector coupling is gaining international attention as a means to drive further decarbonization. Our study develops and simulates 27 sector coupling technology combinations based on assumptions derived from the literature and then evaluates their efficacy in meeting Germany's CO2 emission targets for 2030, 2045, and 2050, respectively. Our findings reveal that only ambitious technological pathways involving disruptive innovations in multiple sectors offer realistic pathways for achieving the country's decarbonization targets. Using a scoring system that incorporates technical and socioeconomic indicators, we reveal the relation between reductions in CO2 emissions and multi-criteria-based scores assigned to specific sector coupling scenarios. Our results favor emission reductions from both a socio-economic perspective and a purely economic one, and they highlight the benefits of disruptive sectoral linkages in achieving emission reduction targets. Nevertheless, none of the technology combinations analyzed here meet the more ambitious German emission targets set in 2021.

Dinamika dan Daya Saing Sektor Pertanian di Kabupaten Padang Pariaman, Sumatera Barat

Regional economic development is closely related to the role of the agricultural sector. In addition to food production, agriculture also contributes to the absorption of labor. During the COVID-19 pandemic, regional economic growth in Indonesia tended to decline, as well as in Padang Pariaman. Padang Pariaman will have a negative growth rate of 10.46% in 2020, the lowest compared to the average GDP growth rate of the other region in West Sumatra. This study aims to determine the dynamics and competitiveness of the agricultural sector compared to the other sectors. The research was conducted in a quantitative and descriptive manner using time series data for the period 2016–2020 from BPS. Data analysis using Klassen typology and shift share analysis. The results showed that the agricultural sector has an average share of 21.37% of the GDP of Padang Pariaman. Based on Klassen's typology analysis, the agriculture sector was included in the potential sector category in 2017–2019 but shifted to the developed sector category in 2020. Despite experiencing slow growth, the results of shift share analysis show that the agricultural sector in Padang Pariaman is still competitive. Increasing the competitiveness of the agricultural sector can be pursued by expanding sector linkages with the other economic sectors and increasing diversification of economics activities in agricultural sector Keywords: agricultural sector; shift share analysis; tipology klassen

Cross-regional economic impact of carbon emission regulations: A quantitative spatial equilibrium model for China

We develop and quantitatively evaluate a spatial general equilibrium model that incorporates carbon emission regulations. We study the impact of emission regulation on the economies of regions within a country under climate change mitigation goals, and how the impact of emission regulation in one region influences other regions through regional‒sectoral linkages. The model is calibrated using Chinese regional and sectoral data, and several counterfactual exercises are performed. The results indicate that undifferentiated increases in emission regulation across regions have resulted in inter-regional differences in real GDP changes; however, “equity-oriented” regionally differentiated emissions regulations reduce this imbalance. Regarding interactions between regions, negative impacts on the economy are characterized by geographical proximity, whereas positive impacts are not geographically constrained. Sectoral linkages exacerbate the negative economic impacts of emission regulations and widen regional disparities. Additionally, we demonstrate the extended application of our model through two case studies.

Entrepreneurship and misallocation in production network economies

This paper investigates how sectoral linkages amplify or diminish misallocation at the intensive and extensive margins. Our analysis is based on a multisector general equilibrium model with input–output linkages, heterogeneous entrepreneurial abilities, and endogenous occupational choice. Distortions affect the intensive use of production inputs and they also impact the agents’ occupational decisions, misallocating the mass and type of entrepreneurs in different sectors of production. When the most distorted sectors are upstream (downstream), input–output linkages amplify (diminish) the loss from entreprenurial misallocation. We calibrate the model to the US and quantify the output losses from sectoral corporate taxes, decomposing the role of networks and the extensive margin decisions. We find that sectoral linkages quadruple the loss from the misallocation of entrepreneurs. We study an entry subsidy program, showing that it should target those sectors whose marginal entrepreneurs suffer larger profit losses, even if they are not necessarily the most distorted.

Empirical linkages of the construction sector, intensive energy consumption, and economic openness with chemical oxygen demand pollution.

Though construction sector development and economic openness contribute to regional economic development, they have also been debated to pose some environmental challenges. Along these lines, we explored the long- and short-term connections of intensive energy consumption, economic openness, and construction sector development with the chemical oxygen demand throughout the scales of regional development of China's 30 provincial units over the 2004-2021 period. Theoretically, we contribute to the existing knowledge by incorporating chemical oxygen demand pollution, construction sector development, and economic openness to the Kaya identity's baseline framework. Empirically, we apply a series of advanced methods of panel data econometrics for robust results. Our key findings are as follows: First, we revealed a long-term stable cointegrating association among our variables of interest. Second, using the common correlated effect mean group estimator, we unfolded that the intensive energy consumption showed a chemical oxygen demand pollution reduction influence in both the long and short term, demonstrating the most substantial influence in the high regional development panel while expressing the least powerful influence the least regional development setting. Third, we unveiled that economic openness and construction sector development showed a linear chemical oxygen demand pollution enhancement influence in moderately and least developed regions. Nevertheless, both established an inverted U-shaped linkage with chemical oxygen demand pollution for the whole country as well as for high regional development data samples. Eventually, we found consistent estimates across long- and short-term investigations regarding signs of relationships; however, long-term effects remained more powerful than short-term ones. These findings would serve as factual scientific knowledge to help local as well as national governments create the optimal environmental regulations for the construction sector to achieve the sustainable development goals (SDGs), especially the Climate Action Plan (i.e., SDG-13).

Sectoral Linkages and Key Sectors of the Georgian Economy

Sectoral Linkages and Key Sectors of the Georgian Economy

Inter-regional economic-environmental correlation effects of power sector in China

Power sector is the pillar industry to promote China's rapid economic growth. It is also one of the sectors with the largest carbon emissions and water consumption. The green transformation of the power sector has become the focus of China's provincial economic and environmental policies. However, due to the complex inter-provincial power sector linkage, provincial power policies have spillover and overlapping effects, making it difficult for policies to coordinate and complement each other. Here, we quantify the value-added, CO2 emissions and water consumption driven by inter-provincial power sector linkage in China, and proposes differentiated policies at provincial and sectoral levels for green transformation of power sector. By quantifying the economic and environmental correlation effects among China's provincial power sectors, we found that low-carbon transformation of power sector in industrial provinces have higher economic costs. East and North China's policies committed to emission reduction in power sector can save more water.

RCEP, global value chains and welfare effects: a quantitative analysis based on the distinction between intermediates and final goods

ABSTRACT We quantify the trade and welfare effects of RCEP. Using a quantitative multi-country and multi-sector trade model that distinguishes key characteristics between intermediates and final goods, we illustrate the heterogeneous impacts of RCEP on trade and welfare. RCEP has trade creation effects within members but has trade diversion effects for non-members. There are substantial welfare gains within RCEP, but the decomposition results indicate that the sources of welfare gains differ, with China and ASEAN countries mainly originating from growth in the volume of trade, but at the cost of the deterioration in terms of trade. Trade liberalization in service also contributes to welfare gains, mainly from intermediates trade. India’s accession to RCEP improves the welfare of itself and its members, while its terms of trade deteriorate. We also find that with distinctions between intermediates and final goods, the heterogeneous effects of the two can be captured. Moreover, our model predicts more significant welfare gains than a model without input-output networks and sectoral linkages.

Robust sensitivity analysis to uncertainties in environmental and socio-economic scenarios: A perspective from a global socio-ecological system model

Uncertainties exist in modelling and simulating complex socio-ecological systems due to unknown, unmeasurable, and uncontrollable occurrence probabilities of future conditions, which are often expressed through multiple representative future scenarios. The sensitivities of uncertain scenario parameters that comprise these scenarios may be different under different scenarios. To largely reduce unnecessary efforts of refining insensitive parameters, it is helpful to identify scenario parameters that remain sensitive in all plausible future scenarios. Based on a well-established global socio-ecological system model—Functional Enviro-economic Linkages Integrated neXus (FeliX), this study conducted robust sensitivity analyses of the scenario parameters that defined five representative environmental and socio-economic scenarios. The study explored their sensitivities on eco-environmental carrying capacity represented by six planetary boundary (PB) indicators. A three-step method was proposed for these analyses. First, an uncertainty analysis was adopted to explore the impacts of uncertain scenario parameters on PB indicators in each scenario using the Latin hypercube sampling and nonparametric Kruskal-Wallis test. Second, a sensitivity analysis was utilized to quantify the global sensitivity of each parameter using the Extended Fourier Transform Sensitivity Test (eFAST). Third, we conducted a robust sensitivity analysis and identified 12 common sensitive parameters that remained sensitive under all five scenarios by combining the eFAST's results according to four decision criteria representing different decision preferences. This study provides a better understanding of the sensitivity of scenario parameters on PB indicators influenced by future uncertainties across five representative scenarios in a complex socio-ecological system modelled by FeliX. The findings make it easier to improve and apply FeliX or other socio-ecological system models by focusing on key parameters and understanding important linkages of sectors in socio-ecological systems.

The socioeconomic impact of the seafood sector at Ireland’s main ports

The seafood sector in Ireland is an important economic and social driver for communities around the coastline of the island. Many coastal communities in Ireland are situated far from regional urban centres with lower levels of infrastructure making these locations less attractive to industry. In order to capture detailed information on seafood supply chains in Ireland and how these evolve over time, a programme of periodical assessments of the top ten fishing ports was developed. While many studies have assessed the links of seafood sectors with the wider economy at the national level or for a specific port, no studies have been found that assess the sector at numerous ports across multiple regions of a country. The assessment detailed here will be carried out every five years utilizing the same methodology where linkages of the seafood sector with other parts of the local, regional and national economies will be assessed by surveying producers and adapting national input-output tables with the survey results. The survey was carried out in 2019 and the data collected referred to production in 2018. The main findings were that for every four direct employees in the seafood sector, three were employed in the wider economy. Significant variance in multipliers was found across ports and subsectors highlighting the importance of assessing multiple ports and regions when assessing the national seafood sector. In this paper the methodology used to carry out this assessment will be detailed with an overview of the results across the main ports.

POTENTIAL LEADING SECTOR TO DRIVE ECONOMIC GROWTH IN WEST NUSA TENGGARA PROVINCE

West Nusa Tenggara Province (NTB) has a small economy with a concentration of output to meet needs within its region and has a small proportion of trade outside the NTB region. Leading sectors are needed for faster economic growth. This study aims to describe how the structure of trade and the leading sectors drive economic growth. This research uses the descriptive quantitative method by utilizing interregional input and output data. The results indicate that the output trade structure is mostly traded within the NTB area and the majority is used for final demand. The sector with the largest output value in NTB is still the agricultural sector. However, based on sectoral linkages, the Electricity and Gas Procurement sector has the greatest capacity to encourage the progress of its upstream and downstream sectors. This means that the sector has the potential as a leading sector with the highest economic multiplier and should this sector be encouraged and continued to be spurred to boost economic growth.

Tracing water use by sectors in Morocco: An input–output modeling approach

AbstractIn recent decades, Morocco has experienced a strong and rapid increase in water demand due to many challenges such as population growth, urbanization sprawl, and economic development. Besides, climate change and its negative impact on natural water resources availability have put the supply–demand balance in jeopardy. This imperative has created a priority need to analyze the demand structure and identify how economic sector linkages mitigate or exacerbate water shortage. In this paper, a methodological framework based on an input–output model has been proposed to capture not only sectors with a large drag effect on water consumption of the whole economy but also the propagation of water use from both diffusion and absorption effects. The results show that the responsibility for water stress is attributed to different sectors and depends on the exogenous final demand shocks. This highlights the significance of consumers' decisions in the determination of ecological impact assessment.

Coordination of sectoral climate policies and life cycle emissions

Drastically reducing greenhouse gas emissions involves numerous specific actions in each sector of the economy. The costs and abatement potential of these measures are interdependent because of sectoral linkages. For instance, the carbon footprint of electric vehicles depends on the electricity mix. This issue has received large attention in the literature on Life Cycle Assessments (LCA). This paper analyzes how life cycle considerations should be integrated into policy design. We model a partial equilibrium with two vertically connected sectors, an upstream (e.g. electricity) and a downstream (e.g. transportation) one. In each sector, a dirty and a clean technology are available. The clean downstream technology consumes the upstream good and may thus shift emissions to the upstream sector. Our main contribution is to detail how optimal subsidies on clean technologies should incorporate life cycle emissions when carbon pricing is limited. The optimal downstream subsidy should be corrected for all external costs generated in the upstream sector, not only unpriced pollution but also the fiscal externality due to the subsidy to the clean upstream technology. We also analyze the joint optimization of upstream and downstream policies. The upstream subsidy should not incorporate features of the downstream sector, whereas the downstream optimal subsidy depends upon the upstream sector characteristics. All results are illustrated using a calibrated example of the electrification of passenger cars.