As input-output analysis has the advantage of distinguishing between domestically supplied and imported inputs, the extent of the import dependency in the production process and the subsequent economic leakages can be extracted. High import dependency and economic leakages deteriorate the current account deficit and cause many areas of vulnerability, especially for emerging economies like Turkey. Hence using the Turkish case study, we calculate the linkage coefficients, imported input ratios, and leakages of the top exporting sectors by the Leontief inverse matrix for the years 2002 and 2012. Our results show that as the production of the leading exporting sectors increases, imported input requirements and economic leakages increase.
Key words: Input-Output Analysis, Import Dependency, Economic Leakages. JEL Classifications: C67, D57, F14, F32 Article Language: EnglishTurkish
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