TITLE:
Economic Impact of Sectoral Transactions in Nigeria
AUTHORS:
Mfonobong O. Effiong, Chukwuemeka U. Okoye, Noble Jackson Nweze
KEYWORDS:
Input-Output Analysis, Sectoral Transactions, Eurostat Database, Type I and II Multipliers, Nigeria
JOURNAL NAME:
Modern Economy,
Vol.10 No.11,
November
28,
2019
ABSTRACT: Most applications of input-output (I-O) analysis to
date have been to highlight inter-industry flows and to estimate the main
aggregate national accounts, such as GDP, gross output and final demand
categories. However, multiplier coefficients relating to output and income
multipliers have hardly been explored especially in the Nigerian context.
Sectors like agriculture, fishing, food & beverages as well as
mining/quarrying have particularly significant roles and their economic impacts
can be quantified using Nigeria’s I-O table. The study adopted a longitudinal
design and utilized the 2015 I-O table comprising of twenty-six (26) sectors
obtained from Eurostat database. This table was used to compile an
inter-industry transaction table and Leontief matrix, which was then used to
derive industry-wise Type I and Type II multipliers for the aforementioned sectors. Type I multiplier takes into account the
direct and indirect effects while the Type II multiplier captured the induced
effects in addition to the direct and indirect effects. Mining/quarrying as a single sector had a Type I multiplier of 1.80 and 2.17 for both output and
income respectively and a Type II multiplier of 2.41 and 3.12 for both output
and income respectively. Similarly, the fishing sectors were identified to have the highest contributions (2.11 and 2.89 as well
as 2.22 and 3.19) in both Types I and II multipliers for both output and income
respectively when compared with other sectors.