Civil Engineering Reference
In-Depth Information
Forward linkage effect is measured by the response coefficient.
a
i
¼
X
X
X
k
k
k
b
ij
=
1
n
b
ij
j
¼
1
i
¼
1
j
¼
1
a
i
:
response coefficient
b
ij
:
element in the matrix of production induce coefficient
n:
number of industrial sector
Backward linkage effect is measured by the influence coefficient.
b
i
¼
X
X
X
k
k
k
b
ij
=
1
n
b
ij
i
¼
1
i
¼
1
j
¼
1
b
j
:
Influence coefficient
Another stimulus toward additional investment points in the other direction is
called forward linkage. The pressures toward backward linkage investments arise
in part from normal entrepreneurial behavior. The pressures toward backward
linkage investments come primarily from the efforts of existing producers to
increase and diversify the market for their products.
Both forward and backward linkage effect are derived from production induce
coefficient, and those two effects are calculated through coefficient and response
coefficient.
Selecting industries that have high forward and backward linkage effects is a
very important task because these industries are assumed to have a huge influence
on the whole regional economy.
3.3 Indicators Used in Selecting Strategic Industries:
In Case of Daejeon
Daejeon is an international center for advanced science and technology. The city
has a highly intellectual and educated work force, internationally attractive con-
ditions for foreign investors, and various business enterprises.
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