Thursday, August 26, 2021

Ghana Input-Output Matrix Analysis

Below is very preliminary analysis of economic sector linkages in Ghana using the 2015 Social Accounting Matrix (SAM) produced by the Ghana Statistical Service (GSS). I estimate that 17 out of 56 sectors in the SAM have strong backward and forward linkages. These are in the light green part of the figure below. 

Backward linkages measure the inter-connections among input suppliers for an economic sector. If a sector increases its output, there will be increased demand from other sectors whose goods and factors of production are used as inputs for the production of the sector. Forward linkages measure the inter-connections among buyers for the output produced by an economic sector. That is, additional output of products is available to be used as inputs by other sectors for their own production and consumption. 

In general, agricultural sectors largely fall in the light red part of the plot below signaling low linkages to other sectors. Hover over each dot to see more information including sector name and linkage indexes.  

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