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• W2274141925 abstract "This paper analyses the structural interrelationship of the West Malaysian economy based on the 1982 inter-industry table. Four types of direct interdependence are examined, namely, industrial share of final demand and primary input components, input requirement and intermediate transactions of industries. The study indicates that a substantial proportion of private consumption in the economy comprises expenditure on food and services. The fixed capital formation structure is dominated by the construction and motor vehicle industries while the export mix is dominated by the petroleum products, rubber processing and oils and fats industries. In general, the non-agrobased manufacturing industries are the major purchasers of imported inputs whereas the agricultural and service industries are the major users of primary inputs. The analysis of structure of intermediate transactions indicates that there are only a few industries that possess extensive technological linkages with the rest of the economy. The majority of high-linkage industries comprise those that are involved in the processing of imported inputs for domestic or export markets such as chemical fertilizers, plastic products and other metal products. INTRODUCTION alternative analytical techniques and there is The development of inter-industry models comnow a wide variety of inter-industry models in menced in 1936 with Leontiefs empirical model use. The foremost advantage of the inter of the United States economy. Subsequent accuindustry approach of analysis is its stress on inmulation of statistical material in the interdustrial relationships and interdependence, industry framework led to the development of showing empirically how depends ABDUL AZIZ ABDUL RAHMAN upon everything else. This paper analyses the inter-industry relations in the West Malaysian Economy, with specific reference to direct structural interdependence. It will serve as a useful source of information on economic relations in West Malaysia and provides some guidelines for national development planning. INTER-INDUSTRY TABLE An inter-industry table is a two-way transactions matrix of the national economy. The entries in the table are all in money values. Within the table, each industry has a row and a column attributed to it. The size of the table may vary depending upon the degree of detail incorporated in it. The rows of the table show the disposal of the output of each industry: sales of commodities to other industries to be utilised in the current productive process and sales to final demand, comprising government and private consumption, stocks, capital formation and exports. The columns show the sources of the inputs utilised by each industry to produce its output: intermediate inputs purchased from domestic industries and primary inputs. The primary inputs comprise value added (the sum total of wage and non-wage factor payments) and imported inputs. As the input column includes profits, total inputs used in the industry always equal the value of total output. The value of all the purchases made by an industry for each dollar's worth of output may be made by dividing each input value by the corresponding total output. The resulting values are known as input-output coefficients, and the table of input-output coefficients is termed the technology matrix. DATA The primary source of data for this study is the 1970 input-output table for West Malaysia published by the Department of Statistics (1975). Several adjustments have been made to the basic table, including the disaggregation of agricultural sectors into constituent crop industries and the estimation of land development works by the agricultural contractor services subsector. This table is then updated to 1982 by the use of the biproportional rating, or RAS, method. The RAS method proportionally adjust row and column totals to agree with some predeter mined values. The proportions are expressed as the vectors r and s' being termed row and column multipliers respectively. The predetermined values are those of final demands, primary inputs, sectoral outputs and, therefrom, the values of the row and column total vectors. The updated coefficient .matrix, A ^ is related to the base year matrix, A Q, by the relation: The estimates of final demands, primary inputs and sectoral outputs for 1982 were derived from the National Accounts worksheets of the Department of Statistics. To conform to the industrial classification scheme adopted in this study, some adjustments were necessary. Also, for a number of industries, indices of volume of output and prices were applied to the industrial output for 1970 in order to derive the output levels for 1982." @default.
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• W2274141925 date "1987-01-01" @default.
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• W2274141925 title "An inter-industry analysis of the West Malaysian economy." @default.
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