Reposition of Forward-to-Backward Input-Output Analysis

Abstract

A common phenomenon that is met in the literature is the fallacious use of traditional quantitative backward-to-forward analysis for the construction of matrices for the forward analysis. The generated deceitful backward-to-forward direct individual indices load to erroneous total sectoral forward linkages indicators (TFLs’) and type I for-ward multipliers (t.I-FMs’). Moreover, they are used in the literature as a part for other “mixed” indicators adding correct backward to incorrect forward measurements, leading the analysts to inappropriate deductions as regards the frontloading concernment of various productive sectors in an economy. In order to be tackled this situation an “ad-justed” quantitative forward-to-backward approach must be adopted, as a necessary complementary part for a con-summate growing planning. The paper scrutinizes and concretizes this proposed adjusted approach, both in theory and in practice, via an empirical application. The adjusted forward type I multipliers are nominated and calculated, escorting this analysis.

Keywords

• i-o analysis
• adjusted forward-to-backward approach
• forward linkages’ indices
• type i forward multipliers.