Page 26 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 1, 2014, pp. 26-39

THE JORDANIAN SECTORAL LINKAGES, LEADING SECTORS AND IMPORT
LEAKAGES
-AN EMPIRICAL AND STRATEGIC STUDY-

Dr. Hashim Al-Ali
Senior Macroeconomic and Modelling Advisor and Senior Consultant
Ministry of Planning and International Cooperation (MOPIC)

In Association with

Mukhallad Omari
Policies and Strategies Department (PSD), Director

Orouba AlSabbagh
Senior Economist/Research Coordinator
PSD/MOPIC
Amman, Jordan

Received 23 January 2014; accepted 10 June 2014; published online 15 July 2014

Abstract

The main objective of this paper is to structure and quantify a simple input-output model,

to derive the various sectors forward and backward linkages, and to identify the leading sectors

of the Jordanian economy. This is besides, quantify the sectoral import leakages, and hence,

identify these activities that have a higher potential for strategic import substitution policy.

This paper and its contents considered the first modelling attempt to derive and calculate

various sector linkages and import leakages in the economy. That said, such results are of vital

important for rational policy making, and for optimal allocation of limited investment resources

among various sectors of the economy, to achieve more balanced and sustainable socio-

economic development, through time.

Furthermore, the paper has derived various sectoral import leakages. This is very

significant indicators for putting forward more realistic future import substitution strategies and

26