scholarly journals The intersectoral linkage effects in Turkish economy: an application of static Leontief model

2009 ◽  
Vol 56 (3) ◽  
pp. 301-326
Author(s):  
Yay Gürkan ◽  
Serkan Keçeli

In this study, the leading activities of Turkish Economy whose changes in their structure of production, value-added and employment are interrelated with the other activities of the economy, are found by using the input-output model which is presented and called as an 'Application of the General Equilibrium Theory' by Leontief. For this purpose; firstly theoretical foundations of the input-output model are examined. After that, 59 activities of the 2002 Input-Output Table of the Turkish Economy are aggregated at 52 sectors and classified into three categories as Ricardo Sectors, High-Technology Sectors and Heckscher-Ohlin Sectors like Dasgupta and Chakraborty did for the Indian Economy in 2005. Then, the leading, key or strong activities of the economy that are more interrelated with other activities are calculated and found by the Static Leontief Model which is used by the Traditional Methods as the techniques to calculate the linkage effects like Chenery-Watanabe and Rasmussen methods to determine the sectors having the highest priority at investment policies according to the Hirschmanian Unbalanced Growth Model. As a result of the interpretation of Leontief Model, using the traditional methods of Chenery-Watanabe and Rasmussen while calculating the linkage effects rather than the hypothesis extraction methods like Strassert's Original Extraction Method, Cella's Extraction Method, Sonis' Pure Linkage Method and Dietzenbacher and Van der Linden's Method or a SAM (Social Accounting Method) model which does not omit the income generating process (distributing income among primary factors and households as a result of production) of a sector, in Turkey, the Heckscher-Ohlin Sectors mostly seen in the manufacturing industry which Kaldor refers as the engine of growth, are stronger than the other sectors.

2020 ◽  
pp. 479-498
Author(s):  
Hilal Hurriyet ◽  
Dilupa Nakandala

This chapter analyses the evolution of lean thinking and its widening applications from its origin of the manufacturing industry towards the other industries with the emphasis on how organizations could learn from lean thinking for achieving improved performance of innovation processes. Based on the degree of novelty, uncertainty and complexity associated with innovation processes, direct adoption of lean thinking for optimization is considered to be challenging. We discuss that organizations need to realize that there are opportunities for lateral learning from lean applications that have benefited systematic repetitive processes such as manufacturing by adapting to innovation processes through identification and shedding of non-value added activities. By identifying several lean innovation approaches in practice for optimizing innovation process, we stress the need and opportunity for the adaptation of lean thinking to cater the special characteristics of innovation processes.


1997 ◽  
Vol 3 (4) ◽  
pp. 341-359 ◽  
Author(s):  
Daniel Freeman ◽  
Esther Sultan

Tourism has become one of the main export services in Israel in the last five years. The objective of this study was to estimate the comprehensive contribution of tourism to the economy of Israel and its spatial distribution. The study measured the impacts (multipliers) on three levels: direct, indirect and induced. A multi-regional input–output (MRIO) model was used in this research because of its capability to evaluate the impacts of inter-regional interdependencies simultaneously with those of sectoral ones. The results were expressed as multi-regional input–output multipliers. The authors conclude that the sum of the value-added from indirect output was 4% of GDP, and that from induced impacts was 7% of the GDP. There were differences in the impacts within and outside the regions. The analysis of multi-regional impacts through the use of MRIO enabled the authors to estimate simultaneously the magnitude of the impacts within the region, the related impacts in other regions, and the feedback impacts due to the other regions' demand.


Author(s):  
Yuventus Effendi

In  recent  years,  there  is  a  significant  decline  of  cocoa  beans  in  terms  of exports  value  and  share  after  2010.  Several  studies  claimed  that  this  downward trend  was  caused  by  the  introduction  of  an  export  tax  on  cocoa  beans  in  2010. Nevertheless, there are limited studies on the impacts of decreasing cocoa beans exports to  the  Indonesian  economy.  Therefore,  this  study  aimed  to  simulate  the impacts  of  the  imposition  of  export  tax  on  cocoa  beans  to  the  economy  as  well as  unemployment.  Methodology  of  this  study  utilised  the  Input-Output  Table. In  particular,  this  study  calculated  the  impacts  of  export  tax  on  cocoa  beans  to the  changes  of  output,  primary  inputs,  and  unemployment  in  several  scenarios. The main result of this study was that at extreme scenario, where the cocoa beans sector’s  export  was  eliminated,  the  impacts  on  the  whole  economy  and  unemployment were  insignificant.  Moreover,  this  study  found  that  the  impacts  on  value added  such  as  decreasing  of  profit  were  relatively  higher  than  decreasing ra te  on the  output  and  others  value  added  such  as  salary  and  wages  and  indirect taxes. On  the  other  hand,  this  study  argued  that  even  though  the  introduction  of  export tax  effectively  reduced raw  cocoa  beans  exports,  there  was  an  increasing  on  the exports’  value on the  down  stream  industries.


2020 ◽  
Vol 30 (2) ◽  
pp. 703
Author(s):  
José Baños ◽  
Francesc Pujol ◽  
Plácido Rodríguez

This article looks at economic and media impact for the city of Gijon by the celebration of the World Speed Skating Championships in September 2008. To calculate the economic impact we use Input-Output tables of Asturias transforming regional coefficients into city coefficients to measure the economic impact in terms of gross value added and employment  We consider that the sports events and the cities are brands to study the media impact. With a media clipping service are handled the news appeared on the event and the city of Gijon, before, during and after the celebration of the Championships. The economic results are positive principally for the expense of not residents controlled by surveys; on the other hand the media impact was not very relevant except in the sector linked to skating.


Author(s):  
Hilal Hurriyet ◽  
Dilupa Nakandala

This chapter analyses the evolution of lean thinking and its widening applications from its origin of the manufacturing industry towards the other industries with the emphasis on how organizations could learn from lean thinking for achieving improved performance of innovation processes. Based on the degree of novelty, uncertainty and complexity associated with innovation processes, direct adoption of lean thinking for optimization is considered to be challenging. We discuss that organizations need to realize that there are opportunities for lateral learning from lean applications that have benefited systematic repetitive processes such as manufacturing by adapting to innovation processes through identification and shedding of non-value added activities. By identifying several lean innovation approaches in practice for optimizing innovation process, we stress the need and opportunity for the adaptation of lean thinking to cater the special characteristics of innovation processes.


2017 ◽  
Vol 21 (2) ◽  
pp. 145-160 ◽  
Author(s):  
Chang-Soo Lee ◽  
Inkyo Cheong

Purpose The purpose of this paper is to calculate regional contents in the exports of the major regional blocs to the world, Trans-Pacific Strategic Economic Partnership (TPP), and Regional Comprehensive Economic Partnership (RCEP), respectively, to find the backward trade linkages between them instead of normal forward linkages. Design/methodology/approach To calculate “a region” content in intermediate and value-added exports, this paper uses OECD’s inter-country input-output table (ICIOT), and tries to decompose the contents of trade. Using the information of ICIOT, Koopman et al. (2014) and Wang et al. (2013) decompose gross exports of a country’s exports. Findings TPP is a loosely tied bloc featured by openness to the Asia-Pacific region. Trade linkages between members are stronger in RCEP than those in TPP, particularly in the trade of intermediate goods. Trades in RCEP are closely connected to exports to TPP, but the opposite direction is not clear. Research limitations/implications First of all, the recent base year of the data on value added in trade is 2011, which can be regarded as a little bit out of date. Therefore, it should be cautious in interpreting the results in that it may not reflect the characteristics of current trade. Second, this paper uses ICOIT instead of world input-output table. Practical implications A large portion of trades in RCEP and TPP is triggered by a global production network (fragmentation, vertical specialization), different from traditional trade focusing on inter-industry trade or competition between countries. Thus, the formation of TPP or RCEP is predicted to stimulate trade of the other instead of discriminating nonmember countries. Social implications In particular, the authors have special concern in the backward linkages between RCEP and TPP, the distinct characteristics of the two regional blocs and, finally, major countries’ preferences of the one over the other and industrial conflicts toward TPP or RCEP even in an economy. Originality/value Although this paper uses the approach by Baldwin and Lopez-Gonzalez, this paper is the first research on the analysis of the export contents in major trading blocs in the Asia-Pacific region.


2019 ◽  
Vol 3 (1) ◽  
pp. 26
Author(s):  
An Lu ◽  
Jian Wu ◽  
Liang Liu ◽  
Min Zhang ◽  
Shuai Li

Based on the latest 2012 input-output data of Jiangsu Province, this paper uses MATLAB-assisted calculation to quantitatively analyze the industrial ripple effect and industry type of textile manufacturing industry in Jiangsu Province. The research results show that the textile manufacturing industry in Jiangsu Province is a type III final demand industrial sector; the current value added of textile manufacturing in Jiangsu Province is low; the textile manufacturing industry’s influence coefficient  and induction coefficient  are higher than the social average.


2020 ◽  
Vol 2020 (3) ◽  
pp. 06-21
Author(s):  
М.M. Kulyk ◽  

The current Ghosh model is based on the use of value-added forecast data. The forecasts of gross domestic product and value added have long and regularly been developed by different national and international economic and financial structures, including governmental ones. The level of methods and accuracy of such forecasts is quite high as compared with the final demand forecasts on which the Leontief model is based. Therefore, from the econometric point of view, the accuracy of predictions of output made by using the Ghosh model should be at least not worse than that provided by the classical Leontief model. The modified Ghosh model formally differs from its current model by the presence of a new matrix. However, this difference is only a structural feature, and in mathematical terms these models are identical. At the same time, the modified Ghosh model is more attractive and promising than the current one due to the following factors. It uses one matrix instead of two matrices that appear in the current model. The modified model has a structure (unlike the current one) similar to the structure of the classical Leontief model. Due to this, the modified model is more understandable and easy to use. However, the most important feature lies in the fact that the use of a new matrix significantly expands the possibilities of theoretical research within the input-output structures. Due to constructing a new matrix in the modified Ghosh model, new relations between the vectors of final demand and value added were discovered, which can be efficiently used in balancing the system of input-output matrices. It was also established that the corresponding matrices of the classical Leontief model and the modified Ghosh model have identical diagonal elements in pairs, and this is useful in various analytical studies. Keywords: modified Ghosh model, input-output, Leontief model, value added, final demand


2006 ◽  
Vol 56 (1) ◽  
pp. 1-43
Author(s):  
Sándor Richter

The order and modalities of cross-member state redistribution as well as the net financial position of the member states are one of the most widely discussed aspects of European integration. The paper addresses selected issues in the current debate on the EU budget for the period 2007 to 2013 and introduces four scenarios. The first is identical to the European Commission's proposal; the second is based on reducing the budget to 1% of the EU's GNI, as proposed by the six net-payer countries, while maintaining the expenditure structure of the Commission's proposal. The next two scenarios represent radical reforms: one of them also features a '1% EU GNI'; however, the expenditures for providing 'EU-wide value-added' are left unchanged and it is envisaged that the requisite cuts will be made in the expenditures earmarked for cohesion. The other reform scenario is different from the former one in that the cohesion-related expenditures are left unchanged and the expenditures for providing 'EU-wide value-added' are reduced. After the comparison of the various scenarios, the allocation of transfers to the new member states in terms of the conditions prevailing in the different scenarios is analysed.


1980 ◽  
Vol 19 (3) ◽  
pp. 247-249
Author(s):  
A. R. Kemal

Input -output analysis is being widely used in developing countries for planning purposes. For a given level of final demand, input-output analysis allows us to project the required level of gross output to ensure consistency of plan. These projections are made on the assumption that the existing production structure is optimal and it implies that an increase in demand will be met through the expansion of domestic output even when it can be satisfied through an increase in imports. On the other hand, according to the semi-input-output method, we do not have to increase the output of international sectors in order to meet the increase in demand because the level and composition of these activities should be determined by comparative- cost considerations. These are the only national sectors in which output must increase in order to avoid shortage. The semi-input -output method has been such a useful and important contribution, yet, regrettably, its influence on the planning models had been rather limited.


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