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Intersectoral Linkages and Key Sectors in China, 1987–1997

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  • B. Andreosso‐O'Callaghan
  • G. Yue

Abstract

Since the pioneering work by Rasmussen and others in the 1950s, alternative measures of linkages have been developed, with the aim of examining the interdependence in production structures and in identifying key sectors in an economy. Our study proposes a comparative analysis of traditional and modern methods, by applying them to the case of China between 1987 and 1997. It finds that backward and forward linkages have generally increased in China, denoting an increase in intersectoral interdependence, with some sectors (e.g. agriculture, food, textiles and chemicals) being dominant in this process. With regard to the identification of key sectors, hypothetical extraction methods provide superior results compared with traditional methods. Agriculture, textiles, chemicals, building materials, primary metals, machinery, commerce and other services are all recognized as being the key sectors by both the total linkage and pure linkage methods.

Suggested Citation

  • B. Andreosso‐O'Callaghan & G. Yue, 2004. "Intersectoral Linkages and Key Sectors in China, 1987–1997," Asian Economic Journal, East Asian Economic Association, vol. 18(2), pages 165-183, June.
    • Handle: RePEc:bla:asiaec:v:18:y:2004:i:2:p:165-183
    DOI: 10.1111/j.1467-8381.2004.00188.x
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    References listed on IDEAS

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    Cited by:

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    3. Susanne Fricke & Bianka Dettmer, 2014. "Backbone services as growth enabling factor - an Input-Output analysis for South Africa," Jena Economics Research Papers 2014-016, Friedrich-Schiller-University Jena.
    4. Jutta Günther & Maria Kristalova & Udo Ludwig, 2019. "Structural stability of the research & development sector in European economies despite the economic crisis," Journal of Evolutionary Economics, Springer, vol. 29(5), pages 1415-1432, November.
    5. Holz, Carsten A., 2011. "The unbalanced growth hypothesis and the role of the state: The case of China's state-owned enterprises," Journal of Development Economics, Elsevier, vol. 96(2), pages 220-238, November.
    6. Yue-Jun Zhang & Xiao-Juan Bian & Weiping Tan, 2018. "The linkages of sectoral carbon dioxide emission caused by household consumption in China: evidence from the hypothetical extraction method," Empirical Economics, Springer, vol. 54(4), pages 1743-1775, June.
    7. Ian P. Cassar & Adrian Theuma, 2022. "Analysis of Input (Supply) Multipliers for the Maltese Economy on the Basis of the SIOTs for 2010 and 2015," Applied Economics and Finance, Redfame publishing, vol. 9(3), pages 69-81, August.

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