Analyzing Linkages and Leakages Sectors in Iran

Within input–output framework، there are two kinds of economic linkages between sectors. The demand relationship is referred to as backward linkage and the supply relationship is referred to as forward linkage. The analysis of the strengths of backward and forward linkages allows us to identify the most important sectors in the economy. Obviously، in an open economy، imported products may also be used in the production process. Hence، when increasing production it will also generate additional imports to support it. That kind of import is called an economic leakage in the sense that it represents a leakage to the multiplier effect. For such assessment in Iran، the distinction between imported and domestically supplied inputs، which has been disregarded so far in empirical analysis، is crucial. In This paper، the distinction between imported and domestically produced inputs is taken into account in such a framework، besides an accurate measurement of domestic linkages; one can add a new dimension to the analysis. However، in this paper using the 1380 input-output tables of Iran''s linkage and leakage sectors are analyzed.