Economics at your fingertips  

Cross sectoral linkages to explain structural transformation in Nepal

Muhammad Aamir Khan

Structural Change and Economic Dynamics, 2020, vol. 52, issue C, 221-235

Abstract: Many developing countries considers export-oriented Structural Transformation as panacea for economic development. Existing literature on economic growth and structural change also relies on trade data for policy implication on country's competitiveness and long-term growth prospects. With this backdrop, this research aims to identify cross sectoral linkages using Input-Output (IO) Data and quantifies the economy-wide impacts of Trade and productivity oriented Structural transformation in Nepal on macro as well as at household level using a Global Commutable General Equilibrium (CGE) Model. The model is calibrated with latest Nepal Social Accounting Matrix 2007–08. Using Input Output framework, sectors with Higher Backward linkages are Hotels, Food, Wood, Textile and Wearing Apparel. This means inputs of these sectors come predominantly from other sectors of the economy. Whereas Construction, Agriculture, Hunting, forestry and fishing, are the sectors with Higher Forward linkages. This implies the fact that the outputs of these sectors are used as inputs in other sectors directly or indirectly on a large scale. The simulation results show that Sectoral and Labor Productivity in favor of promising sectors (Manufacturing and Services) have significant positive effects (in terms of growth, welfare, household income) on Nepal economy.

Keywords: Structural transformation; Cross sectoral linkages; Input Output Models; Commutable general equilibrium model; Nepal (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.strueco.2019.11.005

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-05-07
Handle: RePEc:eee:streco:v:52:y:2020:i:c:p:221-235