Position of Agro-Based Industry Sector in Economy of Kermanshah Province: Input-Output Approach

Agricultural development, as one of the main axis in every country’s development, has a special role, and agro-based industry can be regarded as necessary and motivating precondition for development in this sector. This study investigates the position of agro-based industries in Kermanshah province by using the input-output table of the province for 2001, which is estimated by the most recent Location Quotient (AFLQij) method. In addition, it identifies and measures linkages among various economic sectors of the province by modern methods of linkage calculation in Hypothetical Extraction Method (within spatial linkages pattern). The findings show the desired position of agro-based industries in the economy of the province so that the sector stands in the first place, among others, in terms of the total backward and forward linkages as well as the third place in average when these linkages are decomposed into their external and internal ones.

JEL Classification: D57, R11, R12, Q16, L16