Backward & Forward Linkages in Chinese Steel Industry Using Input Output Analysis

This paper measures the direct and indirect contribution made by iron and steel industry in the economy of China and assess the differences between China and other steel producing countries. With this aim in view, the input-output modelling is used to detect the industrial linkages known as backward and forward linkages of eight iron and steel producing countries, including China, USA, Japan, Germany, Italy, Brazil, Korea, and India. The induction effect of export demand on steel industry in China is shown to be less than several OECD countries, such as Japan.