Import multiplier in input - output analysis

Abstract

In this research paper, the Keynesian, Leontief’s and Miyazawa’ s multiplier concepts are extended in order to decompose the factors that propagate to total import requirements on such variables as domestic intermediate consumption, domestic final consumption, domestic investment and export. From these extended concept s, we are able to quantify the direct and indirect import requirements and determine the decomposition factors that induce total import requirements. Along with domestic output multipliers, policy makers would be able to look into and consider the import m ultiplier as a key determinant in sectoral economic planning and policy formulation .