Sectoral linkages and industrial efficiency: a dilemma or a requisition in identifying development priorities?

摘要

This paper attempts to provide an empirical evaluation of the potential relationship between sectoral linkages (backward and forward) and technical efficiency using the 1995 input–output tables for 14 EU countries. Sectoral technical efficiency is obtained by the econometric estimation of a “multilateral” stochastic input distance function, while sectoral backward and forward linkage coefficients were computed using the noncomplete hypothetical extraction method suggested by Dietzenbacher and Van der Linden (J Reg Sci 37:235–257, 1997). The empirical results suggest that the relationship between industrial technical efficiency and sectoral interdependence is ambiguous. Although the majority of the countries, in the sample exhibit a negative relationship, for some countries, the opposite is revealed. This implies that policy makers should not be blindly based on sectoral interdependence in forming development plans, and they should take into consideration the efficiency of resource utilization of individual sectors. The combination of the information provided by both indices will assist in devising effective policy plans in stimulating internal economic growth.