Intersectoral demand linkages: Good shocks, bad outcomes?

Key Points

• Economic outcomes are influenced by both good and bad demand shocks across sectors, affecting overall growth.
• Incorporating intersectoral linkages, the analysis finds that shocks have divergent effects on different sectors.
• The assessment reveals that positive shocks can lead to negative outcomes in certain contexts, complicating relationships.
• Understanding these dynamics is crucial for policy-making aimed at moderating economic vulnerabilities.