Sectoral productivity in Hungarian economy: an input-output linkages approach
DOI:
https://doi.org/10.15549/jeecar.v6i2.318Keywords:
Input-output Model, Backward Linkages, Forward Linkages, Key sectors, Competitiveness.Abstract
With the pace of economic development, many changes exist on production and consumption side. The study attempts to re-investigate the production structure change in Hungarian economy by ranking sectors. We used the latest input-output table for 2011 available by OECD. The study employed the Leontief model for demand side for forward linkages indices, while supply side for backward linkages indices to examine the ranking sectors structure changes. Findings has shown that on demand and supply side key sectors stand as prominent sectors such as manufacturing, metals, wholesale and retail trade and telecommunications. New evidence is found that Hungary economy need to have careful planning in order to attract FDI as hub of investment. There is also utmost importance to promote education to have human capital in order to meet long term challenges. Lastly, country still have high global competitiveness which shed light on its new economic policies as readiness towards technical innovation, successful market place and specialization process.
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