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

Argyrios D. Kolokontes, Achilleas Kontogeorgos, Efstratios Loizou, Fotios Chatzitheodoridis


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.


I-O analysis; backward linkages’ indices; type I multipliers; initial exogenous stimuli; “intrasectoral initial trends for impacts’ generation”.

JEL Codes

C18; C67; E61; O21.

Full Text:



Augusztinovics, M., 1970. Methods of International and Intertemporal Comparison of Structure. In P. A. Carter and A. Brody (Eds.), Contributions to Input-Output Analysis. Proceedings of the Fourth International Conference on Input-Output Techniques (Vol. 13, pp. 248-269). Amsterdam: North Holland Publishing Company.

Bayers, B. W., 1976. Empirical Identification of Key Sectors: Some Further Evidence. Environment & Planning A, 8(2), 231-236.

Bekhet, A. H., 2011. Output, Income and Employment Multipliers in Malaysian Economy: Input-Output Approach. International Business Research, 4(1), 208-223.

Bekhet, A. H., 2012. Assessing Development Efficiency in Malaysian Economy: Input-Output Approach. International Journal of Economics and Business Research, 4(3), 297-325.

Cai, J., and Leung, P., 2004. Linkage Measures: A Revisit and a Suggested Alternative. Economic Systems Research, 16(1), 65-85.

Cardenete, M. A., Lima, M. C., and Sancho, F., 2017. A Multiplier Evaluation of Primary Factors Supply-Shocks. Working Paper in History and Economics, 17(01).

Cardenete, M. A., and Sancho, F., 2012. The Role of Supply Constraints in Multiplier Analysis. Economic Systems Research, 24(1), 21-34.

Cella, G., 1984. The Input - Output Measurement of Interindustry Linkages. Oxford Bulletin of Economics and Statistics, 46(1), 73-84.

Chisari, O. O., Mastronardi, J. L., and Romero, A. C., 2019. Commodities Prices and Critical Parameters for Macroeconomic Performance: A CGE Analysis for Argentina, Brazil and Chile. Estudios Econόmicos, 36(72), 5-30.

Chuenchum, P., Puttanapong, N., Suttinon, P., and Ruangrassamme, P., 2018. Cross-Sectoral Analysis of Water Usage in Thailand Using Input-Output Model. Engineering Journal (New York), 22(6), 93-115.

Cuello, A. F., Mansouri, F., and Hewings, D. J. G., 1992. The Identification of Structure at a Sectoral Level: A Reformulation of Hirschman-Rasmussen Key-Sector Indices. Economic Systems Research, 4(4), 285-296.

de Mesnard, L., 2002. Note About the Concept of Net Multiplier. Journal of Regional Science, 42(3), 545-548.

de Mesnard, L., 2004. Understanding the Shortcomings of Commodity-Based Technology in Input-Output Models: An Economic Circuit Approach. Journal of Regional Science, 44(1), 125-141.

de Mesnard, L., 2007a. A Critical Comment on Oosterhaven-Stelder Net Multipliers. The Annals of Regional Science, 41(2), 249-271.

de Mesnard, L., 2007b. Reply to Oosterhaven: The Net Multiplier is a New Key Sector Indicator. The Annals of Regional Science, 41(2), 285-296.

Dietzenbacher, E., 2002. Interregional Multipliers: Looking Backward, Looking Forward. Regional Studies, 36(2), 125-136.

Dietzenbacher, E., 2005. More on Multipliers. Journal of Regional Science, 45(2), 421-426.

Dietzenbacher, E., and Lahr, L. M., 2004. Wassily Leontief and Input-Output Economics. New York: Cambridge University Press.

Dietzenbacher, E., Lenzen, M., Los, B., Guan, D., Lahr, L. M., Sancho, F., . . . Yang, C., 2013. Input-Output Analysis: The Next 25 Years. Economic Systems Research, 25(4), 369-389.

Freytag, A., and Fricke, S., 2017. Sectoral Linkages of Financial Services as Channels of Economic Development - An Input-Output Analysis of the Nigerian and Kenyan Economies. 7(1), 36-44.

Guang, F., and Wen, L., 2020. Growth pattern changes in China's energy consumption. Environmental Science and Pollution Research International.

Guerra, A. I., and Sancho, F., 2012. Budget-Constrained Expenditure Multipliers. Applied Economics Letters, 18(13), 1259-1262.

Haslop, F., Mastronardi, J. L., Romero, A. C., and Tarelli, P. J., 2017. Understanding Regional Tourism Impact when Data is Scarce: Dealing with the Absence of a Regional Input-Output Table. Paper presented at the 25th International Input-Output Conference of International Input-Output Association Atlantic City, New Jersey, USA.

Hazari, R. B., 1970. Empirical Identification of Key Sectors in the Indian Economy. The Review of Economics and Statistics, 52(3), 301-305.

Hellenic Statistical Authority, 2017. Sectoral Employment 2015. from

Hellenic Statistical Authority, 2019. The Symmetric Input-Output Table of Greece, 2015. from

Hirschman, O. A., 1958. The Strategy of Economic Development. New Haven: Yale University Press.

Humavindu, N. M., and Stage, J., 2013. Key Sectors of the Namibian Economy. Journal of Economic Structures, 2(1), 1-15.

Ivanova, G., 2014. The Mining Industry in Queensland, Australia: Some Regional Development Issues. Resources Policy, 39(March), 101-114.

Jensen, C. R., Mandeville, D. T., and Karunaratne, D. N., 1979. Regional Economic Planning: Generation of Regional Input-Output Analysis. London: Croom Helm Ltd.

Jones, P. L., 1976. The Measurement of Hirschmanian Linkages. The Quarterly Journal of Economics, 90(2), 323-333.

Kakderi, C., and Tasapoulou, A., 2017. Regional Economic Resilience: The role of National and Regional Policies. European Planning Studies, 25(8), 1435-1453.

Kelly, S., 2015. Estimating Economic Loss from Cascading Infrastructure Failure: A Perspective on Modelling Interdependency. 2(1), 7.

Kelly, S., Tyler, P., and Crawford-Brown, D., 2016. Exploring Vulnerability and Interdependency of UK Infrastructure Using Key-Linkages Analysis. Networks and Spatial Economics, 16(3), 865-892.

Kolokontes, D. A., and Chatzitheodoridis, F., 2008. Unemployment and Development Priorities and Prospects of Western Macedonia Region Greece: A Sectoral Approach. The Empirical Economics Letters, 7(11), 1103-1115.

Kolokontes, D. A., Karafyllis, C., and Chatzitheodoridis, F., 2008. Peculiarities and Usefulness of Multipliers, Elasticities and Location Quotients for the Regional Development Planning: Another View. 2(2), 118-133.

Kolokontes, D. A., Kontogeorgos, A., Loizou, E., and Chatzitheodoridis, F., 2018. Key-Sectors Attractiveness of the Greek Economy: An Input-Output Approach. Applied Econometrics and International Development, 18, 35-54.

Kolokontes, D. A., Kontogeorgos, A., Loizou, E., and Chatzitheodoridis, F., 2019. Input-Output Models and Derived Indicators: A Critical Review. Scientific Annals of Economics and Business, 66(3), 267 – 308.

Lahiri, S., 2000. Professor Wassily W. Leontief, 1905-1999. The Economic Journal, 110(4), 695-707.

Lenzen, M., 2003. Environmentally Important Paths, Linkages and Key Sectors in the Australian Economy. Structural Change and Economic Dynamics, 14(1), 1-34.

Leontief, W. W., 1936. Quantitative Input and Output Relations in the Economic System of the United States. The Review of Economic Statistics, 18(3), 105-125.

Leontief, W. W., 1951. Input-Output Economics. Scientific American, 185(4), 15-21.

Lopes, C. T., and Neder, D. H., 2017. Sraffa, Leontief, Lange: The Political Economy of Input-Output Economics. Economia, 18(2), 192-211.

Mariolis, T., and Soklis, G., 2020. The Contribution of Primary Inputs to Price Formation: An Input-Output Analysis of the Greek Economy. 41, 101-118.

Mastronardi, J. L., Romero, A. C., and Chisari, O. O., 2012. Building an Input-Output Model for Buenos Aires City. Munich Personal RePEc Archive, 40028.

Meng, B., Xiao, H., Ye, J., and Li, S., 2019. Are Global Value Chains Truly Global? A New Perspective Based on the Measure of trade in Value-Added. Institute of Developing Economies (IDE), Discussion Paper, 736.

Milana, C., 1985. Direct and Indirect Requirements for Gross Output in Input-Output Analysis. Metroeconomica, 37(3), 283-291.

Miller, E. R., and Blair, D. P., 2009. Input-Output Analysis: Foundations and Extensions. New York: Cambridge University Press.

Muller-Hansen, F., Schluter, M., Mas, M., Hegselmann, R., Donges, F. J., Kolb, J. J., . . . Heitzig, J., 2017. How to Represent Human Behavior and Decision Making in Earth System Models? A Guide to Techniques and Approaches. 18(4), 977-1007.

Nguyen, T. H., Aviso, B. K., Le, Q. D., and Tokai, A., 2018. Main Drivers of Carbon Dioxide Emissions in Vietnam Trajectory 2000-2011: An Input-Output Structural Decomposition Analysis. Journal of Sustainable Development, 11(4), 129-147.

Nguyen, T. Q., Bui, T., and Vu, A. T., 2019. Vietnam Economic Structure and Greenhouse Gas Emission based on Input-Output Analysis. Journal of Economics and Business, 2(3), 941-950.

Oosterhaven, J., 2004. On the Definition of Key Sectors and the Stability of Net versus Gross Multipliers. SOM Research Report, No.04C01. Groningen: University of Groningen, SOM research school.

Oosterhaven, J., 2007. The Net Multiplier is a New Key Sector Indicator: Reply to De Mesnard's Comment. The Annals of Regional Science, 41(2), 273-283.

Oosterhaven, J., and Stelder, D., 2002. Net Multipliers Avoid Exaggerating Impacts: With a Bi-regional Illustration for the Dutch Transportation Sector. Journal of Regional Science, 42(3), 533-543.

Rasmussen, P. N., 1956. Studies in Intersectoral Relations. Amsterdam: North Holland Publishing Company.

Robinson, S., 2006. Macro Models and Multipliers: Leontief, Stone, Keynes, and CGE Models. In A. de Janvry and R. Kanbur (Eds.), Poverty, Inequality and Development: Essays in Honor of Erik Thorbecke (pp. 205-232). Boston, MA: Springer US.

Romero, A. C., Mastronardi, J. L., Tarelli, P. J., and Haslop, F., 2019. The Regional Impact of Tourism When Data is Scarce. An Application to the Province of Salta. Tourism Planning & Development, 1-17.

Romero, I., Dietzenbacher, E., and Hewings, D. J. G., 2009. Fragmentation and Complexity: Analyzing Structural Change in the Chicago Regional Economy. Revista de Economia Mundial, 23, 263-282.

Sancho, F., 2012. Straightening Out the Concept of Direct and Indirect Input Requirements. Economic Bulletin, 32(1), 502-509.

Sancho, F., 2013. Some Conceptual Difficulties Regarding "Net" Multipliers. The Annals of Regional Science, 51(2), 537-552.

Sonis, M., Guilhoto, M. J. J., Hewings, D. J. G., and Martins, B. E., 1995. Linkages, Key Sectors and Structural Change: Some New Perspectives. The Developing Economies, 33(3), 233-270.

Tadayuki, H., 2008. Quantitative Tourism Industry Analysis: Introduction to Input-Output, Social Accounting Matrix Modeling and Tourism Satellite Accounts. Canada: Charon Tec Ltd., A Macmillan Company, Elsevier Inc.

Thomassin, J. P., 2018. The Evolution of I-O Analysis. In K. Mukhopadhyay (Ed.), Applications of the Input-Output Framework. Mumbai, India: Springer Nature Singapore Pte Ltd. .

West, R. G., and Jensen, C. R., 1980. Some Reflections on Input-Output Multipliers. The Annals of Regional Science, 14(2), 77-89.

Yotopoulos, A. P., and Nugent, B. J., 1973. A Balanced - Growth Version of the Linkage Hypothesis: A Test. The Quarterly Journal of Economics, 87(2), 157-171.



  • There are currently no refbacks.