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Income circular flow and its impact on sustainable agricultural productivity

Author

Listed:
  • Irfan Ahmed

    (Jazan University)

  • Mohammad Arif Riaz

    (Jazan University)

  • Ibrahim Abdou Alamir

    (Jazan University)

  • Abdulwahab Mujalli

    (Jazan University)

  • Alhussein Nasser Alayadh

    (Jazan University)

  • Mohammad Jibran Gul Wani

    (Jazan University)

Abstract

This study empirically investigates the pivotal role of the institutional sectors’ disposable income in shaping economic productivity, explicitly focusing on agricultural productivity within Saudi Arabia. Utilizing a social accounting matrix as a data framework, we employ an extended multisector model that integrates income generation and distribution with production structures. Through dispersion analysis, we meticulously explore production sectors' forward and backward linkages within the broader economic system. Our findings reveal that while the agriculture sector exhibits strong backward linkages, its forward linkages remain comparatively weaker in both exogenous and endogenous setups. Moreover, including the income-expenditure phenomenon significantly alters the structural links of several other sectors. The current study provides valuable insights into integrating income-expenditure dynamics within production structures, explicitly focusing on institutional sectors. Notably, the incorporation of the income-expenditure phenomenon emerges as a transformative factor, influencing the structural interconnections of numerous other sectors. The findings highlight the pivotal role of the agriculture sector in shaping broader economic relationships and emphasize the need for nuanced policy considerations to optimize the overall economic structure.

Suggested Citation

  • Irfan Ahmed & Mohammad Arif Riaz & Ibrahim Abdou Alamir & Abdulwahab Mujalli & Alhussein Nasser Alayadh & Mohammad Jibran Gul Wani, 2024. "Income circular flow and its impact on sustainable agricultural productivity," SN Business & Economics, Springer, vol. 4(8), pages 1-20, August.
    • Handle: RePEc:spr:snbeco:v:4:y:2024:i:8:d:10.1007_s43546-024-00695-6
    DOI: 10.1007/s43546-024-00695-6
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    More about this item

    Keywords

    Agriculture; Sustainable productivity; Social accounting matrix; Extended model; Linkage analysis;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications

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