Economics

Exploring the backward and forward linkages of production network in a developing country

I. Ahmad and S. Alvi

This research conducted by Imtiaz Ahmad and Shahzad Alvi delves into Pakistan's production network, revealing surprising insights about sector linkages. It highlights the significance of electricity, petroleum, and chemicals while showcasing the potential for fostering economic growth through improved sector efficiency.

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Playback language: English

Index

Abstract

This paper investigates Pakistan's production network using social network analysis (SNA) techniques applied to an input-output table. The findings reveal that sectors exhibit weaker forward linkages compared to backward linkages. Services sectors, particularly transportation and trade, demonstrate the highest out-degree (forward linkages), while manufacturing sectors show lower connectivity. Electricity, petroleum, and chemicals sectors emerge as crucial due to their widespread use as inputs, significantly impacting the economy indirectly despite moderate direct downstream absorption. Enhancing efficiency in these sectors is suggested for maximizing economy-wide impact.

Publisher

Humanities & Social Sciences Communications

Published On

Feb 22, 2024

Authors

Imtiaz Ahmad, Shahzad Alvi

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