MULTIPLIERS AND INDICES OF LINKAGES OF THE VIETNAMESE ECONOMY

Abstract

This paper applies the theoretical approach of multipliers and indices of linkages using the extended input-output model. Based on Vietnam Input-Output Table 2012 and 2016 and other relevant data, the study examines how each of 21 sectors affects the economy in terms of output, income and sectoral structures. The analysis results demonstrate that the Chemicals, Manufacture of basic metals, Machinery and equipment sectors have the greatest impact on national output. Therefore, the paper suggests several policy implications on enhancing the dispersion of the key economic sectors in Vietnam.

Keywords: Input-output Model; output multiplier; income multiplier; backward linkage; forward linkage.