Analysis of Inter-Industry Relations in Pakistan for 1975 -76

Aftab Ali Syed


Input-Output tables provide a detailed accounting of the goods
and services that individual industries buy from and sell to each other,
and , therefore, constitute a useful medium for an analysis of the
interdependent nature of the various sectors of an economy. The PIDE's
release of input-output (I-D) tables of Pakistan's economy for the year
1975 -76 [9] is an important contribution in this respect. An 'open'
output determination of model of the Leontief type is applied to the
said data base to delineate the structural interdependence of Pakistan's
economy. Some salient features of the economy such as sectoral
distribution of the value added, cost composition of the value of
sectoral outputs, output and income multipliers are discussed in Section
l. The notion of interdependence arising through technological
interconnections between various sectors implies structural linkages -
both “backward” and “forward”. Quantification of these linkages provides
an effective way of identifying "key sectors" of the economy. Section II
discusses the methodology used and the empirical results obtained
pertaining to key sectors of the Pakistan's economy. Some concluding
remarks are offered in Section Ill.

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