Esfandiar Jahangard; Afrouz Azadikhah Jahromi
Volume 13, Issue 51 , January 2014, , Pages 81-111
Abstract
In this paper we identify the production chains of Iranian economy by using average propagation length (APL) index. In our imprical investigation, we have applied the mentioned methodology to the 2000 input-output table of Iran. In order to obtain a clear overview of the production chains in Iran, the ...
Read More
In this paper we identify the production chains of Iranian economy by using average propagation length (APL) index. In our imprical investigation, we have applied the mentioned methodology to the 2000 input-output table of Iran. In order to obtain a clear overview of the production chains in Iran, the table was aggregated to 6 sector level. At first we calculate the backward and forward linkages and APLs, and then we visualize the production chains for Iranian economy. As a second application we have considered the linkages, APLs and production chains at a more detailed level. For this purpose, we have used the 28-sector classification. The results for the backward and forward linkages of each sector indicate that industry and electricity, gas and water supply are known as key sectors. Also it was found that largest average forward APL value belongs to agriculture and mining, and smallest value belongs to services and construction. Likewise, the largest average backward APL value is observed for construction and agriculture, and smallest value oserverd for mining and services. It should also be noted that in both applications mining located at the beginning of the production chain o Iranian economy.
