Examining Linkage for National Economic Policy Development

Abstract

Purpose: The research examines the relationship between sectors' forward linkages and sectors' contribution to net export earnings, employment generation, and value-added creation of Indonesia's manufacturing. Methodology: This study finds that high forward linkages are not always associated with a higher contribution to the economy. Theoretical value: The policies based on intersectoral input linkages have been prevalent and implemented in many developing countries. Indonesia's Government has frequently introduced the policies based on linkages. Results: Therefore, placing too much emphasis on the forward linkages for policymaking is unwarranted. Paper type - Empirical.