The Applicability and Utilization of Input - Output Model in a Developing Economy/ / إمكانية تطبيق واستخدام نموذج المدخلات والمخرجات في الاقتصاد النامي

Abstract

The study explores the applicability of the Input-Output model in the developing Egyptian economy, focusing on the interdependencies between different economic sectors. First, the intersectoral dependencies within the Egyptian economy are examined. Then, the stability of the input coefficients in Egypt’s input-output table is analyzed, especially in the context of technological changes, such as the substitution of competitive and non-competitive imports. The study also examines the stability of relative prices and the effects of economies of scale. Furthermore, the utilization of the input-output table for national budgeting is explored, assessing both the direct and indirect import requirements per unit of final demand and their impact on value-added and household income. The study concludes by analyzing the impact of various categories of final demand on Egypt’s economy.