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Gains from Export Growth: Do Linkages Matter?

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  • Prema-Chandra Athukorala
  • Bambang H. Santosa

Abstract

Policy makers in developing countries often place emphasis on inter-sectoral input linkages ( linkages for short) in determining sectoral priorities in export development policy, particularly in designing export promotion schemes and in screening and monitoring export-oriented foreign direct investment. Development analysts too place emphasis on linkages as an operational norm in assessing the developmental impact of emerging export industries. The purpose of this paper is to argue that the use of this closed-economy planning tool as a performance criterion in the context of exportoriented growth strategy is fundamentally flawed. We illustrate our argument using Indonesia as a case study. The methodology adopted involves the examination, using the Leontief inter-industry accounting framework as the main analytical tool, of the relationship between sectoral input linkages, and employment impact and contribution to net foreign exchange earnings of manufactured exports in Indonesian manufacturing during 1985-95.
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Suggested Citation

  • Prema-Chandra Athukorala & Bambang H. Santosa, 1996. "Gains from Export Growth: Do Linkages Matter?," Trade and Development 96/13, Australian National University, Department of Economics.
    • Handle: RePEc:wop:anuetd:9613
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    File URL: http://coombs.anu.edu.au/~ecopac/wpaper/wp1996/9613.prn
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    Cited by:

    1. Prema-chandra Athukorala, 2006. "Outward-oriented Policy Reforms and Industrialisation," Journal of South Asian Development, , vol. 1(1), pages 19-49, April.
    2. Habanabakize Thomas & Muzindutsi Paul-Francois, 2018. "Analysis of the Keynesian Theory of Employment and Sectoral Job Creation: The Case of the South African Manufacturing Sector," Folia Oeconomica Stetinensia, Sciendo, vol. 18(1), pages 123-143, June.

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