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Sectoral linkages and industrial efficiency: a dilemma or a requisition in identifying development priorities?

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  • Giannis Karagiannis
  • Vangelis Tzouvelekas

    ()

Abstract

This paper attempts to provide an empirical evaluation of the potential relationship between sectoral linkages and technical efficiency using the 1996 US input-output tables. Sectoral input-oriented technical efficiency is obtained by the econometric estimation of a stochastic input-distance function based on Battese and Coelli (1995) model formulation. On the other hand, sectoral backward and forward linkage coefficients were computed using the non-complete hypothetical extraction method suggested by Dietzenbacher and Van der Linden (1997). The empirical results suggest that there is a negative relationship between sectoral efficiency and linkage coefficients, while on the other hand efficient sectors tend to purchase their intermediate inputs from efficient sectors and vice versa.

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File URL: http://hdl.handle.net/10.1007/s00168-008-0280-5
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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 45 (2010)
Issue (Month): 1 (August)
Pages: 207-233

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Handle: RePEc:spr:anresc:v:45:y:2010:i:1:p:207-233

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Related research

Keywords: O21; O52; D24; D57;

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  1. Clements, Benedict J., 1990. "On the decomposition and normalization of interindustry linkages," Economics Letters, Elsevier, vol. 33(4), pages 337-340, August.
  2. W.E. Diewert, 1986. "Export Supply and Import Demand Functions: A Production Theory Approach," NBER Working Papers 2011, National Bureau of Economic Research, Inc.
  3. Grosskopf, S. & Hayes, K. & Hirschberg, J., 1995. "Fiscal stress and the production of public safety: A distance function approach," Journal of Public Economics, Elsevier, vol. 57(2), pages 277-296, June.
  4. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May.
  5. Jansen, Pieter Kop & ten Raa, Thijs, 1990. "The Choice of Model in the Construction of Input-Output Coefficients Matrices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(1), pages 213-27, February.
  6. Lawrence, Denis, 1990. "An adjustment-costs model of export supply and import demand," Journal of Econometrics, Elsevier, vol. 46(3), pages 381-398, December.
  7. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
  8. Jones, Leroy P, 1976. "The Measurement of Hirschmanian Linkages," The Quarterly Journal of Economics, MIT Press, vol. 90(2), pages 323-33, May.
  9. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
  10. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  11. Cella, Guido, 1984. "The Input-Output Measurement of Interindustry Linkages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(1), pages 73-84, February.
  12. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  13. Heimler, Alberto, 1991. "Linkages and Vertical Integration in the Chinese Economy," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 261-67, May.
  14. Raa, M.H. ten & Kop Jansen, P., 1990. "The choice of model in the construction of input-output coefficients matrices," Open Access publications from Tilburg University urn:nbn:nl:ui:12-381948, Tilburg University.
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