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Missing links in key sector analysis


  • M. Alejandro Cardenete
  • Ferran Sancho


In general terms, key sectors analysis aims at identifying and quantifying the economic impact of a sector in a given economy. For a sector, we mean here either an industry or a region, or even a cluster of them. Quite a few measures and methodologies of varied complexity have been proposed in the literature, from multiplier sums to extraction methods, but not without debate about their properties and information content. All of them, to our knowledge, focus exclusively on the interdependence effects that result from an input-output structure of the economy. By so doing the approach misses critical links beyond the interindustry ones. A productive sector's role is that of producing but also that of generating and distributing income among primary factors and households as a result of production. Thus, when measuring a sector's role, the income generating process should not be omitted if we want to elucidate the sector's true economic impact. A simple way to make the missing income links explicit is to use the SAM (Social Accounting Matrix) facility. Extending an extraction methodology to the SAM we compare lost output with and without the missing links. We observe that substantial differences in sectoral lost gross output arise but, even more important, we capture the implied shifting in the rank ordering of sectors.

Suggested Citation

  • M. Alejandro Cardenete & Ferran Sancho, 2006. "Missing links in key sector analysis," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 319-325.
  • Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:319-325 DOI: 10.1080/09535310600844409

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    References listed on IDEAS

    1. Julio Sanchez-Choliz & Rosa Duarte, 2003. "Production Chains and Linkage Indicators," Economic Systems Research, Taylor & Francis Journals, vol. 15(4), pages 481-494.
    2. Erik Dietzenbacher, 2002. "Interregional Multipliers: Looking Backward, Looking Forward," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 125-136.
    3. Robinson, Sherman & Roland-Holst, David W., 1988. "Macroeconomic structure and computable general equilibrium models," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 353-375.
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    Cited by:

    1. Gülsün Gürkan Yay & Serkan Keçeli, 2009. "The Intersectoral Linkage Effects in Turkish Economy: An Application of Static Leontief Model," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(3), pages 301-326, September.
    2. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    3. Stanislav Edward Shmelev (ODID), "undated". "Environmentally Extended Input-Output Analysis of the UK Economy: Key Sector Analysis," QEH Working Papers qehwps183, Queen Elizabeth House, University of Oxford.
    4. George Philippidis & Ana SanJuan Lopez & Emanuele Ferrari & Robert M'Barek, 2014. "Structural Patterns of the Bioeconomy in the EU Member States – a SAM approach," JRC Working Papers JRC90698, Joint Research Centre (Seville site).
    5. Alejandro CARDENETE & Patricia FUENTES SAGUAR & Clemente POLO, "undated". "Energy System and CO2 emissions: a SAM Analysis," EcoMod2008 23800022, EcoMod.
    6. Miguel, Francisco Javier de & Llop Llop, Maria & Manresa, Antonio, 1954-, 2011. "Simulating the Impact of Sectorial Productivity Gains on Two Regional Economies: Key Sectors from a Supply Side Perspective," Working Papers 2072/169681, Universitat Rovira i Virgili, Department of Economics.
    7. Guerra, Ana-Isabel & Sancho, Ferran, 2010. "Measuring energy linkages with the hypothetical extraction method: An application to Spain," Energy Economics, Elsevier, vol. 32(4), pages 831-837, July.
    8. Francisco Miguel & Maria Llop & Antonio Manresa, 2014. "Sectoral productivity gains in two regional economies: key sectors from a supply-side perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 731-744, November.
    9. Ana-Isabel Guerra, 2011. "Merging the Hypothetical Extraction Method and the Classical Multiplier Approach: A Hybrid Possibility for Identifying Key Distributive Sectors," UFAE and IAE Working Papers 886.11, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    10. Ian P.Cassar, 2017. "Assessing structural change in the Maltese economy via the application of a hypothetical extraction analysis," CBM Working Papers WP/01/2017, Central Bank of Malta.
    11. M. Alejandro Cardenete & Ferran Sancho, 2007. "A Computable General Equilibrium Approach to Hypothetical Extractions and Missing Links," UFAE and IAE Working Papers 710.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 29 Oct 2008.
    12. Cansino Muñoz-Repiso, José Manuel & Cardenete Flores, M.Alejandro & Ordóñez Ríos, Manuel & Román Collado, Rocío, 2013. "Análisis de sectores clave de la economía española a partir de la Matriz de Contabilidad Social de España 2007/Key Sectors Analysis of the Spanish Economy Using a Social Accounting Matrix for 2007," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 621-654, Septiembr.


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