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Intersectoral linkages and imports of Vietnam: An input-output approach

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  • Hai Thanh Nguyen

Abstract

This study traces the intersectoral linkages, or the interdependence of industries, in Vietnam’s economy within the period of 2000-2012 using the input-output analysis. The total linkages– computed using Leontief inverse–are generally employed by policymakers in identifying critical industries for policy focus However, for many countries that heavily dependent on imported inputs like Vietnam, total linkages can give an erroneous result. The paper shows how important are the domestic linkages, which is the inverse net of imports, in analyzing the importance of industries in the economy. By constructing the non-competitive input-output tables relying on the assumption that imports are distributed across industries in the same proportion as the gross domestic output of the corresponding industry, the paper finds that there are considerable divergences between total and domestic linkages. The results indicate that failure to take into account import dependence tends to overestimate intersectoral linkages of some key sectors in the Vietnamese economy.

Suggested Citation

  • Hai Thanh Nguyen, 2021. "Intersectoral linkages and imports of Vietnam: An input-output approach," Departmental Working Papers 2021-03, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2021-03
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    File URL: https://acde.crawford.anu.edu.au/sites/default/files/publication/acde_crawford_anu_edu_au/2021-02/acde_td_nguyen_2021_03.pdf
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    References listed on IDEAS

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    1. Prema-chandra Athukorala & Arianto A. Patunru, 2023. "Domestic Value Added, Exports and Employment: An Input–Output Analysis of Indonesian Manufacturing," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(3), pages 365-390, September.
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    4. Kubo, Yuji, 1985. "A cross-country comparison of interindustry linkages and the role of imported intermediate inputs," World Development, Elsevier, vol. 13(12), pages 1287-1298, December.
    5. Bulmer-Thomas, Victor, 1978. "Trade, structure and linkages in Costa Rica : An input-output approach," Journal of Development Economics, Elsevier, vol. 5(1), pages 73-86, March.
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    Cited by:

    1. Seema Singha & Soma Roy Dey Choudhury & Brajesh Kumar, 2022. "Foreign direct investments and spillover effect on entrepreneurial activities in India: an empirical study," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 423-439, December.

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    More about this item

    Keywords

    Regionalism; Globalisation; ASEAN;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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