Input-Output Linkages in a Frontier Region of Indonesia

An input-output table is used to estimate multipliers and linkage measures for a rural frontier region of Indonesia. The household sector is found to be the most highly linked to others in the economy and is the most critical in determining results of the inverse matrix. An index combining output, income, and employment multipliers ranks the agriculture, forestry, and food and beverages sectors the highest. Three measures of intersectoral linkage are compared. Rasmussen linkage indices identify manufacturing and service sectors while hypothetical extraction methods identify primary production sectors for development priority. It is proposed that the coefficient of variation not be used as a linkage criterion for the Rasmussen index.