Measuring Connectedness of input-output Models: 1. Survey of the Measures

Szyrmer, Janusz M.

doi:10.1068/a171591

Cited by 30 publications

(23 citation statements)

References 25 publications

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“…For instance, one can imagine a model with only one huge transfer, while all other entries in the Z matrix are zero. According to this index, such a model can be well interconnected, but this result is hard to accept (SZYRMER, 1985;p.1594). The result for the Malaysian economy is shown in Table 3, row 1.…”

Section: Percentage Intermediate Transaction Methodsmentioning

confidence: 99%

“…By impacts, however, they presumably mean the effects of changes in final demands, which, by the nature of things, occur outside the system. Therefore, a greater output multiplier means stronger links between the external demand and the internal production, which is not automatically identical to intensive interconnections inside the model (SZYRMER, 1985;p. 1595).…”

Section: Average Output Multipliers Methodsmentioning

confidence: 99%

“…The authors suggest the areas of potential application of their method may include inter-industrial diversity and specialization, technological change in the economy, and others (SZYRMER, 1985;p.1596).…”

Section: Yan and Ames Methodsmentioning

confidence: 99%

“…However, the Leontief inverse per sector is not a perfect measure of interconnectedness. Moreover, the formula for (I-A) -1 should warn one of the fact that the elements of the Leontief inverse depend not only upon the value of the determinant, but also on the magnitudes of the respective adjoint matrix (SZYRMER, 1985;p.1596). Therefore, a low determinant does not automatically imply large entries in the Leontief inverse.…”

Section: Determinant Methodsmentioning

confidence: 99%

“…Most of these measures were proposed by authors in economics but there are some proposed by biologists, and have an ecological content (useful surveys of some of these measures are HAMILTON and JENSEN 1983, SZYRMER 1985, BASU and JOHNSON 1996, CAI and LEUNG 2004, and AMARAL et al 2007and 2008. It used the measures proposed by economist for Malaysian economic analysis.…”

Section: Theory and Literature Reviewmentioning

confidence: 99%

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Assessing Economic Connectedness Degree of the Malaysian Economy: Input-Output Model Approach

Bekhet¹

2009

IJEF

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Economic connectedness can be defined as the degree of internal connectedness of interdependence between the sectors of an economy. In input-output models intersectoral connectedness is a crucial feature of analysis, and there are many different methods of measuring it. These measures are believed to be important structural indicators, helpful in model estimation. Also, such measures could be analytical useful, along with the input-output models themselves, as descriptions of the nature of the modeled economies, as aids in model estimation, and perhaps as indication of the level of economic development. However, they allow for a summary description and comparative analysis of various linear flow systems. Most of the measures, however, have important drawbacks to be used as a good indicator of economic connectedness, because they were not explicitly made with this purpose in mind. In this paper, I present, discuss, compare and interpretation empirically different indexes of economic connectedness as sectoral connectedness, using a set of four empirical models for the Malaysian economy. The results suggest that mean intermediate coefficient total per sector, % intermediate transaction and % nonzero coefficients are the most generally useful interconnectedness measures for Malaysian Economy.

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Section: Percentage Intermediate Transaction Methodsmentioning

confidence: 99%

Section: Average Output Multipliers Methodsmentioning

confidence: 99%

Section: Yan and Ames Methodsmentioning

confidence: 99%

Section: Determinant Methodsmentioning

confidence: 99%