The Role of Industrial Activities in Economic Development:Input-Output Modeling Approach (Urban Areas)

Doubtlessly، establishing sustainable growth and development of urban areas is a major goal of policy-makers since a considerable proportion of total population with various levels of income live in such areas. Given the scope and diversity of the economic activities، industrial sector may provide an effective instrument for fulfilling the balanced development of economic activities، which could consequently be extended to political، cultural and other spheres. This article uses Input-Output model analysis based on conventional Static IO to investigate the role and position of industrial sector in the economics of urban areas. Hence، a 13-sector table was extracted from 65-sector Input-Output table of Iranian economy in 2006، taking the statistical limitations in mind. Later، production multipliers and backward-forward linkages were calculated in different sectors according to emission power and elasticity. The findings illustrate that paper the highest production coefficient was for construction industry sector 2. 07. The results of elasticity and emission power analysis indicate that as the industrial sector has relationship with other sectors in the field of buying the inputs of other sectors and selling its own outputs to other sectors، it leads more activities in the whole urban economy than the overall average of all other sectors.