2016•RePEc: Research Papers in EconomicsOpen access

Identifying Key Sectors in Iranian Economy using Eigenvector Method Based on Input-Output Table for year 2011

Nader Hakimipoor, Hojjat Akbarian

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Abstract

Due to shortage of the capital, identifying investing sectors with more economic growth and stimulation effects is the matter of interest for many economic planners. These sectors that have the most backward and forward chains with other economic sectors are known as key sectors. The main purpose of this paper is to identify these key sectors using new methods and comparing them with traditional methods. In this study, we used a 69-sector input-output table derived by merging 71-sector input-output table in 2011 (prepared by Iranian statistical center). The results show that despite the high correlation of Rasmussen and eigen vector methods, based on traditional Rasmussen method, 16 sectors, and based on eigen vector method, 4 sectors are as Iran's key economic sectors.

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Due to shortage of the capital, identifying investing sectors with more economic growth and stimulation effects is the matter of interest for many economic planners. These sectors that have the most backward and forward chains with other economic sectors are known as key sectors. The main purpose of this paper is to identify these key sectors using new methods and comparing them with traditional methods. In this study, we used a 69-sector input-output table derived by merging 71-sector input-output table in 2011 (prepared by Iranian statistical center). The results show that despite the high correlation of Rasmussen and eigen vector methods, based on traditional Rasmussen method, 16 sectors, and based on eigen vector method, 4 sectors are as Iran's key economic sectors.

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Available abstract

Due to shortage of the capital, identifying investing sectors with more economic growth and stimulation effects is the matter of interest for many economic planners. These sectors that have the most backward and forward chains with other economic sectors are known as key sectors. The main purpose of this paper is to identify these key sectors using new methods and comparing them with traditional methods. In this study, we used a 69-sector input-output table derived by merging 71-sector input-output table in 2011 (prepared by Iranian statistical center). The results show that despite the high correlation of Rasmussen and eigen vector methods, based on traditional Rasmussen method, 16 sectors, and based on eigen vector method, 4 sectors are as Iran's key economic sectors.

Key concepts: Economic shortage, Key (lock), Table (database), Economic sector, Economics, Final demand, Economy, Econometrics

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