Using Input-output Table to assess Relative Importance of Economic Sectors in Iran Through Net Forward and Net Backward Linkages Approach

The purpose of this paper is to determine the relative importance of economic sectors in Iran on the bases of available input output table for the year 1380(2001).Using Net Forward and Backward Linkages Approach. This approach being superior to other approaches mainly because of avoiding overestimation and double accounting of linkages of sectors that is seen in alternative approaches. The results show that although Gross Multiplier Linkage Coefficients present commodity producing sectors such as agriculture and industry to be relatively more important, probably due to high intermediate material content of these sectors, the Net Multiplier Coefficients, however, show that service sector such as retailers, whole sellers, Hotel, restaurant, education and other service activities are relatively more important in Iranian economy contributing more to growth of other sectors. Taking into account the higher share of services in output and employment in Iran this findings show that the Net Multiplier approach seems to be a more realistic method in determination of importance of sectors in countries such as Iran.