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Decomposition Analysis for the Comparison and the Comprehension of Conventional Input-Output Impacts’ Indicators: An Empirical Paradigm

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  • Argyrios D. Kolokontes
  • Achilleas Kontogeorgos
  • Efstratios Loizou
  • Fotios Chatzitheodoridis

Abstract

Sometimes, the priorities in the growing patterns create dubiousness, surprises and are proved unsuitable to re-form and redress the distortions of economy, magnifying them or even emerging news. When the external or the individual interferences are remained out of the planning, then the knowledge of why the various indices yield conflicting sectoral rankings can help the policy-makers to plan ameliorated strategies. In this paper a decomposition analysis for the components of conventional backward linkages’ (BLs’) indices and the corresponding type I multipliers (t.I-Ms’) has been taken place, in order to support the comparison and the comprehension of conflictions that are recorded on their derived sectoral rankings. For the empirical paradigm, data from the Greek economy have been used. The indicators’ appropriateness for the developmental planning has been scrutinized giving an emphasis on the model’s causality, the initial exogenous stimuli and the “intrasectoral initial trends for impacts’ generation†. The analysis provides a proof that the BL’s indices are strongly tendentious and the t.I-Ms’ are preferable for the medium-to-long run growing planning. JEL Codes - C18; C67; E61; O21

Suggested Citation

  • Argyrios D. Kolokontes & Achilleas Kontogeorgos & Efstratios Loizou & Fotios Chatzitheodoridis, 2020. "Decomposition Analysis for the Comparison and the Comprehension of Conventional Input-Output Impacts’ Indicators: An Empirical Paradigm," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(2), pages 193-217, June.
    • Handle: RePEc:aic:saebjn:v:67:y:2020:i:2:p:193-217:n:11
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    References listed on IDEAS

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    1. Manuel Alejandro Cardenete & Ferran Sancho, 2012. "The Role Of Supply Constraints In Multiplier Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 24(1), pages 21-34, June.
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    3. Hussain Ali Bekhet, 2012. "Assessing development efficiency in Malaysian economy: input-output approach," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(3), pages 297-325.
    4. Junning Cai & Pingsun Leung, 2004. "Linkage Measures: a Revisit and a Suggested Alternative," Economic Systems Research, Taylor & Francis Journals, vol. 16(1), pages 63-83.
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    More about this item

    Keywords

    I-O analysis; backward linkages’ indices; type I multipliers; initial exogenous stimuli; “intrasectoral initial trends for impacts’ generationâ€;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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