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Paper Information

Journal:   EQTESAD-E KESHAVARZI VA TOWSE'E   Summer 2004 , Volume 12 , Number 2 (46); Page(s) 107 To 136.
 
Paper: 

INTER-INDUSTRY LINKAGES AND EMPLOYMENT TARGETING POLICY FOR IRAN

 
 
Author(s):  BIDABAD B.*
 
* Economics, Monetary and Banking Research Academy (MBRA), Affiliated to Central Bank of Iran, Tehrqn, Iran
 
Abstract: 

According to inter-industry linkages, we may conclude that: for having a leap in Irans economy, sectors of glass and glassware, cement, mine, other mineral & non-ferrous products, basic steel and iron mill products, paper & wood industries, chemical & plastic industries, cupper & cupper products, water and electricity in turn should be activated more. When compared to the others, the sectors of foodstuff industries, aluminum and other basic products of non-ferrous metals, cupper and cupper products, steel and iron mill products are able to increase the demand for intermediate products of other sectors more. Basic steel and steel mill products, cupper and cupper products, aluminum and other basic non-ferrous metals products, cement, paper and wood industries, glass and glassware, other mineral nonferrous products, chemical industries and plastic are more integrated than the others relating both forward and backward linkages. Machinery and equipment, basic products of steel and iron mill, chemical industries and plastic are mainly based on import and share of intermediate import to production of aluminum sectors and other basic products of non-ferrous metals, chemical industries and plastic, basic steel and iron mill products, machinery and equipment industries is more than the other sectors. Aluminum and other basic products of non-ferrous metals, foodstuffs industries, basic products of steel and steel mill have higher multiplier effect in increasing economy income, in other words it is possible to consider them as pioneer sectors and economy stimulator engine. Aluminum and other basic products of non-ferrous metals, foodstuff industries, basic products of steel and iron mill have more effect in the growth of other sectors. Sectors of chemical and plastic industries, agriculture, transportation services, warehouse keeping and communications, commercial services provide the highest amount of input for other sectors. According to calculations and based on 1991 Irans input-output table, agriculture sector is a main intermediate products provider for other sectors and its dependence on intermediate products of other sectors is less than the others so that it is classified as self-sufficient sector. This sector as a growth engine in the economy is weaker than the other sectors. and its growth does not make the other sectors. This sector is at medium level in transactions among all 22 sectors growth intensively. By eliminating the effects of intermediate import of agriculture sector, this sector remains as intermediate products provider for other sectors. Agriculture sector, after the financial, banking and insurance services sectors has the most effect on Irans employment. To decrease unemployment, the final demand of this sector should be increased. To create one million new jobs, the final demand of agriculture should be increased by 20000 billion Rials as 16% increase. If the export of agricultural products increases by $2.3 billion, one million new jobs will be created in the economy.

 
Keyword(s): INTER-INDUSTRY ECONOMIC POLICY, EMPLOYMENT, AGRICULTURE SECTOR
 
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