Reposition of Forward-to-Backward Input-Output Analysis

A common phenomenon that is met in the literature is the fallacious use of traditional quantitative backward-to-forward analysis for the construction of matrices for the forward analysis. The generated deceitful backward-to-forward direct individual indices load to erroneous total sectoral forward linkages indicators (TFLs’) and type I for-ward multipliers (t.I-FMs’). Moreover, they are used in the literature as a part for other “mixed” indicators adding correct backward to incorrect forward measurements, leading the analysts to inappropriate deductions as regards the frontloading concernment of various productive sectors in an economy. In order to be tackled this situation an “ad-justed” quantitative forward-to-backward approach must be adopted, as a necessary complementary part for a con-summate growing planning. The paper scrutinizes and concretizes this proposed adjusted approach, both in theory and in practice, via an empirical application. The adjusted forward type I multipliers are nominated and calculated, escorting this analysis.JEL Codes - C18; C51; C52; C67; O2

PECULIARITIES AND USEFULNESS OF MULTIPLIERS, ELASTICITIES AND LOCATION QUOTIENTS FOR THE REGIONAL DEVELOPMENT PLANNING: AN OTHER VIEW

In this paper, the peculiarities of type I multipliers and elasticities and their differences on the generated results for the proposed developmental priorities are examined. Moreover the influences of the used non-survey techniques (Simple Location Quotient, Cross Industry Location Quotient and Flegg’s Location Quotient) among the sectoral rankings from the type I multipliers and elasticities are scrutinized. For the target of the paper, the economy of Western Macedonia region in Greece has been used as an example for the secondary simulation. The results show that the type I multipliers and elasticities are not end up to same sectoral rankings due to their different definition and are not the same suitable indicators for short-term and long-term developmental planning. Nevertheless, their coexistence could improve the economic prosperity both on short and long period of time. As for the used location quotient, the FLQ technique improves the proximity of the sectoral rankings that are generated from all the used indicators and also reduces the magnitudes of type I multipliers and elasticities.Input-output analysis, regional planning, multipliers, elasticities, non-survey techniques

Input-Output Models and Derived Indicators: A Critical Review

Input-Output literature can be characterized as complicated and chaotic. The complications concern the nomenclature of concepts for the derived indices from the multipliers’ models, their mathematical expressions and computable applications. The terminologies’ inconsistencies often end up to a deviation between the description for these indices and their actual computation, or/and to a misunderstanding as for their usefulness and outcomes. The aim of the paper is to help the readers to face the weaknesses in the literature. In this way, the paper provide an overview with a critical look to the constructed multipliers’ matrices and their derived indicators from the I-O models, and elaborate the causes for the scrutinized confusions. The paper proposes both terminological and computational adjustments and differentiated approaches for the models and their indices, in order to ameliorate their capabilities and to exploit their peculiarities for the developmental patterns. Alternative interpretative ways and applicable expansions are suggested.JEL Codes - C18, C31, C67, F43, O2

Decomposition Analysis for the Comparison and the Comprehension of Conventional Input-Output Impacts’ Indicators: An Empirical Paradigm

Sometimes, the priorities in the growing patterns create dubiousness, surprises and are proved unsuitable to re-form and redress the distortions of economy, magnifying them or even emerging news. When the external or the individual interferences are remained out of the planning, then the knowledge of why the various indices yield conflicting sectoral rankings can help the policy-makers to plan ameliorated strategies. In this paper a decomposition analysis for the components of conventional backward linkages’ (BLs’) indices and the corresponding type I multipliers (t.I-Ms’) has been taken place, in order to support the comparison and the comprehension of conflictions that are recorded on their derived sectoral rankings. For the empirical paradigm, data from the Greek economy have been used. The indicators’ appropriateness for the developmental planning has been scrutinized giving an emphasis on the model’s causality, the initial exogenous stimuli and the “intrasectoral initial trends for impacts’ generation”. The analysis provides a proof that the BL’s indices are strongly tendentious and the t.I-Ms’ are preferable for the medium-to-long run growing planning.JEL Codes - C18; C67; E61; O2