AN EMPIRICAL ANALYSIS OF SECTORAL LINKAGES USING THE INPUT-OUTPUT ANALYSIS: A CASE STUDY OF SELECTED SECTORS OF THE NIGERIAN ECONOMY

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ABSTRACT

This empirical research work is a vivid reflection of the Input-Output analysis of selected sectors of the Nigerian economy. This is an extension of the frontier in economic research as this method is rarely made use of in economic research in Nigeria and Africa at large. This analysis takes a look at the industrial and sectoral linkages (forward and backward) among sectors of the Nigerian economy, namely, Mining and Quarrying, Manufacturing, Education, Trade and Services and Other sectors (Real Estate, information and communication and Food and Accommodation) with Mining and Quarrying as the Key sector in focus. Data on these sectors were gotten from the National Bureau of Statistics (NBS) - Industry Summary report prepared in 2015 for the 2012 benchmark year. The Leontief Coefficient and the Rasmussen indices were employed alongside linkage coefficients. It was observed from the research that there exist a weak backward and forward linkage between the Mining sector and the manufacturing, there exist no backward and forward linkage between the mining sector and education sector, there only exist a backward linkage between the mining sector and the Duo sectors (Trade and Service and others) while there is no forward linkage. It was therefore recommended that, based on the fact that the Mining and Quarrying sector is a sector that has the potential of contributing to the economic growth, government should embark on investment in this area as there are a lot of untapped resources in this sector. Also, the sector (mining) will thrive more if Government can, through macroeconomic policies and well directed expenditures, create a strong link between the other four sectors, most especially the education sector.

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