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The Production and Employment Spread Effects of Export-Led Industrialization in Developing Countries: A Case Study

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Abstract

This study measures the spread effects of export expansion in Sri Lanka. Leontief open input-output analysis is used to examine the backward and forward linkages in selected industries in terms of production and employment. The results suggest that the sectoral interdependence of the economy in terms of both backward and forward Linkages is limited. This may be partly explained by the structural weakness of the economy, inherited from the colonial dualistic economic system of Sri Lanka. Most manufacturing sectors involve low backward spread effects due to their high degree of imported input content. In terms of employment generation, the outcome of export expansion in the manufacturing sector is inconsistent with the objectives of the development policies in Sri Lanka.

Suggested Citation

  • Ratnayake, Ravi & Nayanananda, Opatha, 1998. "The Production and Employment Spread Effects of Export-Led Industrialization in Developing Countries: A Case Study," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 51(2), pages 259-278.
    • Handle: RePEc:ris:ecoint:0309
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    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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