Multiplier effects by sector: an input-output analysis of the Greek economy

This study presents sectoral output, gross value added and employment multipliers for the Greek economy based on the most recent Input-Output tables of 2015, which were compiled according to the European System of Accounts (ESA) 2010. Our analysis utilises the Leontief model, in both the “open” and “closed” variations with respect to households’ consumption, which allows to assess, at a disaggregated sectoral level, the direct and indirect production effects, as well as the induced consumption effects caused by exogenous changes in the final demand of each sector. The multipliers offer an up-to-date and systematic ranking of sectors according to their economy-wide potential impact owing to their technological features and inter-sectoral linkages.

Ocean Economic Linkage in Economic Development of Island Province

The importance of the ocean economy in island regional development requires the local government to formulate relevant policies according to the potential of its ocean economic activities. Based on the 2012 North Maluku Province I-O table updated to 2016, this study was conducted by aggregating 20 ocean subsectors to measure inter-sectoral linkages, output multipliers, income multipliers, and labor multipliers in the ocean economic sector. The I-O analysis results show that the leading sectors of the ocean economy of North Maluku Province are fisheries, ore mining, and construction. The marine sector which has excellent development potential in the economic development of North Maluku Province is based on the output multiplier, namely the metal ore mining sector, the food, and beverage industry, marine transportation, and the provision of food and beverage. Based on the number of labor multipliers, the education service, construction, and ore mining sectors can absorb high labor compared to other sectors.

United States

The U.S. financial system is very large, well-diversified, and home to numerous financial institutions which are significant at a global scale. Eight Global Systemically Important Banks (G-SIBs) are incorporated in the U.S., as well as several other large financial institutions, such as asset managers, insurers, and money market funds. Assets of the financial system amounted to about US$100 trillion at end-2019 and accounted for 500 percent of GDP. While the eight G-SIBs dominate the U.S. banking landscape, banking system assets represent only about 22 percent of total financial system assets. The systemic risk assessment (including stress testing) of this FSAP reflect the highly diversified nature of the U.S. financial system and focuses on banks, mutual and money market funds, insurance companies as well as cross-institutional and cross-sectoral linkages and exposures.

Rural Farm and Non-farm Linkages in a Predominantly Manufacturing Region: The Case of Semarang Regency, Indonesia

This paper aimed to explore the correlation between the agricultural and non-agricultural sectors in the rural area affected by the manufacturing industry agglomeration of Semarang. Data on agricultural commodities, non-agricultural labor, and economic service facilities were reduced using factor analysis to form the typology of agricultural commodity areas and typology of rural diversification respectively. The two groups of score factors were correlated to predict the magnitude, direction, and significance of the inter-sectoral linkages. Data interpretation was made with the help of agricultural commodity flow data from the selected market. The study confirms the weak linkages between large-scale manufacturing industries and the agricultural economy in the hinterland. The study reflects weak linkages between the agricultural sector and rural diversification, as indicated by the weak correlation between factor scores. A rather strong linkage is shown by dryland agricultural areas associated with inland fisheries and rural diversification associated with tourism.

A Hydro-Economic Modeling Framework for Climate Change Impacts and Adaptation Assessment in Thailand with Multi-Sectoral Linkages and Multi-Scale Vulnerability

<p>Recent research has demonstrated the multidimensional and multi-sectoral impacts of climate change, evidencing the need to develop national and sub-national integrated tools and policies for the analysis of impacts and adaptation, especially central to local policy recommendation and implementation. This framework combines an area-based economic optimization model with the hydrological model WEAP, and represents the socio-economic, agronomic, and hydrologic systems in a spatially explicit manner covering dimensions and scales relevant to downscaled climate change impacts.  Simulated scenarios are setup to incorporate climate scenario, prior-historic dependence to adaptation conformity, and two policy-based adaptation scenarios. Preliminary results indicate that climate change may impact severely in rain-fed agricultural area and also to irrigation systems reducing water availability and security and crop yields, and increasing in more efficient irrigation water allocation.  The adaptation strategies analysis based on socio-economic, agronomic, and hydrologic dimensions capitalizes the key role of Thailand supply- and demand-side management policy in facilitating adaptation. The under developing framework is currently anticipated to be a useful tool for supporting water resources and climate change policy making.  It can contribute to improve understanding on potential impacts of climate change, multi-sectoral linkages, multi-scale vulnerability, and adaptation programs.   </p>

IRON AND STEEL INDUSTRIES; A STRATEGIC SECTOR FOR TECHNO-ECONOMIC DEVELOPMENT AND NERVE CENTER FOR INDUSTRILIZATION IN NIGERIA

The Nigerian iron and steel industry established as a basis for industrialization has remained unproductive even as the year 2020 targeted for the country to become one of the world's top 20 economies is barely a few months away. Despite, the boom in the oil sector, the value-added sector is low while the inter-sectoral linkages are weak. This implies a boom in one activity rarely affects another in the sector, but will rather impact on the foreign economy from where imports were sourced. Nigeria relies mainly on crude oil to the neglect of the iron and steel sector which is a major determinant for the industrialization of any nation. Lack of industrialization and unemployment in Nigeria today which engenders insecurity could be linked to the comatose state of the Nigerian iron and steel industry. Thus, this paper discussed the iron and steel sector as a strategic sector for rapid development and nerve center for industrialization in Nigeria.

The Impact of Remittances on Economic Activity

We propose a simple macroeconomic model with input-output sectoral linkages based on Acemoglu et al. (2016) to quantify how changes in aggregate demand due to additional income from household’s remittances propagates through the network of input-output linkages in Sub-Saharan African countries. We first propose two network centrality measures to assess the role of some sectors as key input providers in the economy. Then, we use these measures to quantify the effect of sectoral linkages on sectoral and total output following an increase in remittances inflows. Our empirical results suggest that the effects of remittances on recipient economies increase with the degree of linkages across sectors, which is especially prominent in the case of the financial intermediation sector. Our paper contributes to the emerging macroeconomic literature on the propagation of shocks across sectors and the implications for the whole economy.