Rethinking Input-Output Analysis pp 93-112 | Cite as
Other IO Applications with Complications
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Abstract
This chapter deals with two other types of applications of IO analysis that regularly appear in the literature without consideration of their limitations. Regional and interregional, forward and backward linkage analysis, also known as key sector analysis, only looks at the benefits while ignoring the policy cost of stimulating the sector chosen. Structural decomposition analysis of national and interregional economic growth only looks at demand-side explanations of growth, while ignoring the supply side, which is especially a problem when analysing longer-run economic growth. Hence, in both cases, policy makers are presented only half of the truth.
Keywords
Forward and backward linkages Key sector analysis Dutch mainport regions Net multipliers Shift and share analysis Structural decomposition analysis Processing exports Growth accountingReferences
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