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Trade and Linkages Using Input-Output Approach: An Empirical Investigation of Bangladesh

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  • Mustafa K. Mujeri

    (University of Queensland, Brisbane, Australia.)

  • Mohammad Alauddin

    (University of Queensland, Brisbane, Australia.)

Abstract

Employing a variant of the open-static Leontief model and a 53-sector input-output table, the paper identifies a variant of the key sectors in the Bangladesh economy in terms of trade linkages. The concepts of gross and net linkages are introduced and the analysis is extended to both current (flow) and capital (stock) accounts. On the gross linkage criterion, only a handful of sectors emerge as key sectors with three or more linkages. These sectors are from within the manufacturing and services categories. This is also the case with sectors having two strong linkages. Agricultural sectors do not feature at all. A transition from gross to net linkages changes the rankings quite significantly. Most agricultural sectors show two strong linkages in the flow account. The findings suggest that Bangladeshi export sector, is typically undiversified in that it relies heavily on agriculture and related industries, with jute and jute textiles accounting for over 70 percent of net export earnings. Not surprisingly, most sectors in the industrial complex are net importers and the domestic production of industrial goods is highly import-intensive.

Suggested Citation

  • Mustafa K. Mujeri & Mohammad Alauddin, 1994. "Trade and Linkages Using Input-Output Approach: An Empirical Investigation of Bangladesh," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(1), pages 75-92.
    • Handle: RePEc:pid:journl:v:33:y:1994:i:1:p:75-92
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    File URL: http://www.pide.org.pk/pdf/PDR/1994/Volume1/75-92.pdf
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    References listed on IDEAS

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    6. Jagdish Bhagwati, 1968. "The Gains From Trade Once Again," Oxford Economic Papers, Oxford University Press, vol. 20(2), pages 137-148.
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    Cited by:

    1. Quddus, Md. Abdul, 2021. "Interdependence Of Industries And Key Economic Sectors Based On Linkage Indices: Emphasis On Agriculture," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 42(2), December.

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