The Import Leakage Effect and the Effectiveness of Fiscal Policy: An Input-Output Analysis

Abdol Soofi and Kumars Parvin

Public Finance = Finances publiques, 1986, vol. 41, issue 3, 430-39

Abstract: A suggested methodology to measure import leakage magnitude from an economy within the framework of an input-output transactions table, which does not distinguish between domestic and imported inputs, is the paper's objective. The model estimated import leakages due to increased government spending using an Iranian input-output table for 1973-74. Due to the 1974 import structure of the Iranian economy, government fiscal policy (mainly government spending) had a substantially limited effect controlling aggregate demand. The model simulation indicates magnitude of total import leakage for all industries was 20 percent of the estimated increase in 1977 government spending.

Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:41:y:1986:i:3:p:430-39

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