Open AccessTrade and Linkages Using Input-Output Approach: An Empirical Investigation of Bangladesh
Author(s) -
Mustafa K. Mujeri,
Mohammad Alauddin
Publication year - 1994
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v33i1pp.75-92
Subject(s) - agriculture , linkage (software) , earnings , gross output , economics , economic sector , secondary sector of the economy , stock (firearms) , manufacturing sector , production (economics) , business , international economics , economy , macroeconomics , accounting , mechanical engineering , ecology , biochemistry , chemistry , biology , engineering , gene
Employing a variant of the open-static Leontief model and a53-sector input-output table, the paper identifies a variant of the keysectors in the Bangladesh economy in terms of trade linkages. Theconcepts of gross and net linkages are introduced and the analysis isextended to both current (flow) and capital (stock) accounts. On thegross linkage criterion, only a handfnl of sectors emerge as key sectorswith three or more linkages. These sectors are from within themanufacturing and services categories. This is also the case withsectors having two strong linkages. Agricultural sectors do not featureat all. A transition from gross to net linkages changes the rankingsquite significantly. Most agricultural sectors show two strong linkagesin the flow account. The findings suggest that Bangladeshi exportsector· is typically undiversified in that it relies heavily onagriculture and related industries, with jute and jute textilesaccounting for over 70 percent of net export earnings. Not surprisingly,most sectors in the industrial complex are net importers and thedomestic production of industrial goods is highlyimportintensive.