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The IUP Journal of Managerial Economics :
Dynamics of Inter-industrial Linkages in the Economy of Uttar Pradesh
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The paper analyzes the dynamics of inter-industrial linkages for the economy of Uttar Pradesh within the Input-Output framework. It applies the Graph-theoretic approach for the categorization of industrial sectors and sectoral groupings, i.e., cluster analysis. This approach helps in classifying each industry into one of the five categories, namely, the `transmitter', `receiver', `carriers', `ordinary', and `isolate' sectors. In this way, six prominent industrial groups have been identified for the state economy. The significant inter-industrial dependency within a specific industrial group implies that it would be difficult to develop a single industry of the group in isolation. The group as a whole should be developed in order to yield maximum gains from the technological links of the sectors in the context of the overall regional development.

The purpose of the present paper is to analyze the structural properties of the economy of Uttar Pradesh (UP), India, using Input-Output approach. This state is a geographically large state having highest state-wise population in India. In this paper, the possibility of analyzing inter-sectoral through Graph Theory approach is explored. The applications of this approach into the fields of engineering and computer science are very well known (see, Deo, 1987). But this approach is not very common in the regional economic analysis. However, Lever (1975) used this approach to find the degree of integration in sub-regional economic structure. Following this, Campbell (1975) and Lever (1979) have shown that input-output matrices can be converted into directed graphs for analyzing the structure of an economy.

We are using a disaggregated (64x64) input-output matrix for the UP, which a latest revised version of Input-Output, table. The inter-sectoral linkages derived from 64x64 I-O matrix directed graphs were constructed which shows the flows between linked sectors in the state economy. An adjacency matrix is derived from the I-O matrix. Each sector in this matrix is represented as a node (vertex) in the directed graph. The flow of goods or services from sector i to sector j is indicated by and arc (edge) joining the two nodes in the direction i ® j.

 
 
 

Dynamics of Inter-industrial Linkages in the Economy of Uttar Pradesh, Input-Output framework, Graph-theoretic approach, regional development, Input-Output approach, sub-regional economic structure, economic analysis, matrix directed graphs.