The Effects of Decrease in Agricultural Output on the Output of the Other Sectors in the Framework of Mixed Models with Emphasis on the Conventional and Specific Situations

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Abstract

Measurement of sectoral importance in the framework of general equilibrium models is used within two situations: conventional and specific situations. The use of Leontief Demand(LD) and Ghoshian Supply(GS) are not appropriate in measuring sectoral linkage in specific situation. In this paper the modified LD and GS models which are known as mixed models are used to assess the impact of decrease in agricultural, farming and horticulture output as constrained sectors to the output of the other sectors. The overall results depict that the percentage fall of total output of farming in GDP from the selling side is twice that of purchasing side whereas in the case of horticulture the opposite trend is observed. These findings reveal that forward linkage of farming is stronger that its backward linkage where as horticulture has a weaker forward and stranger backward linkage.

JEL Classification: Q11
Keywords:
Conventional Situations, Specific Situations, Leontief Demand Side Model, Ghosh Supply Side Model, Mixed Model, Absolute Effects, Relative Effects

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