Introduction

Abstract

Since Leontief’ s pioneering work in the 1940’s, input-output models have achieved great popularity in applied economic analysis. This has occurred largely because researchers have found the input-output approach to be useful in examining a wide range of economic problems. For example, these models in their structural form have been used to trace the flow of goods between industries not only at the regional and national levels but at the interregional and international levels as well.¹ In addition, the reduced form has found many applications in forecasting and in economic impact studies.²