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backward linkage
noun
(in the case of a product manufactured in stages by different manufacturers) An effect in which increased production by a downstream manufacturer provides positive pecuniary externalities to an upstream manufacturer.
Exact(20)
"I don't think people appreciate the importance of this backward linkage to the rest of manufacturing," said Sanford Jacoby, an economic historian at the University of California, Los Angeles.
It examined the effect of the Leontief inverse on emissions changes into the specific effects of forward linkage, backward linkage, the average of forward/backward linkage and kernel structure.
It also presents both the traditional backward linkage effects as well as the lesser known forward linkage effects.
Although the effect of the Leontief inverse is to increase emissions, the contribution of backward linkage is greater.
Although there were variations in multiplier values, in all regions the backward linkage oriented sectors were construction and mining and quarrying.
Table 2, on the other hand, lists the 34 sectors showing a consistent effect of backward linkage on emissions growth between 1990 and 2005.
Similar(40)
There is a debate about the garment industry's lack of "backward linkages"—its raw materials are all imported, putting a premium on labour costs, productivity and transport.
Extractive industries can spur new activities and encourage diversification: while the possibility of processing profitably everything that is underground should not be overestimated, the promotion of backward linkages (local firms supplying goods and services to big extractive firms) holds the promise of job creation and technological spill-overs.
Regarding innovation backward linkages, transportation equipment has positive effects.
Hence, its innovation backward linkages result in positive effects.
This sector has a great potential of generating employment through its forward and backward linkages.
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