Page 27 - Azerbaijan State University of Economics

Dr. Hashim Al-Ali, Mukhallad Omari, Orouba AlSabbagh: The Jordanian sectoral linkages, leading
sectors and import leakages

policies. Such import substitution strategies would be based on these derived import leakages

factors and sectoral comparative advantages, amongst others.

The empirical solutions of the used models are based on series of input-output tables that

have been structured and built for the Jordanian economy as an upper-middle income developing

economy. However, the basic fact on setting up this approach, here, was that the series of these

used input-output tables, i.e. domestic, total and import tables, are built based, as far as possible,

on independent Jordanian data of 2006, together with full use of the existed various Jordanian

economic surveys and published data.

Keywords: Input-Output Tables, Techniques, Jordan, Forward and Backward Linkages,

Import Leakages, Leading Sectors, Development Strategies, Resources Allocation, Impacts,

Analysis.

JEL Classification Codes: 017; R 15

1. Introduction

In order to describe the structural interdependence of the sectors/industries within the

economy, two measures have been devised. These are; the backward and forward linkage

indices. The first of these indicates the relative ability of an industry or sector to stimulate output

amongst the various sectors within the economy, and the other indicates the relative dependence

of an industry or sector upon demand of its output by different sectors of the economy.

However, and for the purpose of formulating development growth strategy for the national

economy, the linkages have been used to identify the key (leading) sectors in the economy for

growth and development. The leading sectors are these sectors which are in a favourable

position to induce the expansion and development of other sectors of the economy, and hence to

accelerate the development process and stimulate growth in the national economy. These are a

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