Input-Output Analysis of Agricultural Sector in Taiwan
Date Issued
2015
Date
2015
Author(s)
Hung, Ting-Wen
Abstract
In recent years, with the change of the economic structure and the eating habits of people, status of agricultural sector in the primary agriculture and the overall economy is declining gradually. However, according to the total production value, during 1980 to 2013, agricultural sector contribute 43.95% to the average of primary agriculture production value. It is obvious that agricultural sector still play an important role in the primary agriculture. With the changes in management patterns, the connections between agricultural sector and secondary and tertiary industries becomes more and more complex. In order to correctly estimate the contribution of agricultural sector and its importance to the overall economy. It is necessary to take the contribution of its related industries into account, however, there were only a few literature in this field. This paper applies the input-output analysis, bases on input-output tables of 2006 and 2011, to analyze the industry linkage effect and multiplier effect of agricultural sector in 2006 and 2011 and to compute the value-added of agricultural sector and its related industry from 2006 to 2012. The result shows that the index of sensitivity dispersion and the index of power dispersion of agricultural sector are below the average of all industries in 2006 and 2011. We can refer agricultural sector as low linkage industry in quadrant III and it is not tremendously supporting and leading other industries. In term of multiplier effect, either household exogenous or endogenous, income and employment multipliers of agricultural sector perform well in 2006 and 2011. Among all industries, income multiplier normally achieves first or second rank, while employment multiplier ranked between sixth and eighth, and production multiplier also reached third rank under household endogenous circumstance. In term of value-added, the contribution of agricultural sector and its related industries to overall economy is between 6.33% and 7.03% during 2006 to 2012. It is significantly higher than the contribution of sole agricultural sector, which is between 1.08% and 1.34%.The contribution of agricultural sector and its related industries to primary agriculture is between 56.72% and 60.43%.
Subjects
Input-output analysis
multiplier effect
value-added
Type
thesis