Output Multiplier of Iran's Economic Sectors: Input-Output Analysis and Network Theory Approach

Abs tractThe s tructure of production networks determines the macroeconomic responses to sectorial shocks.Accordingly, key sectors are ins trumental in transmitting supply and demand-side shocks.This article applies the methodology proposed by Savoie (2017) and network theory and implements the input-output tables of the Central Bank of Iran in 1988Iran in , 1993Iran in , 1999Iran in , 2004Iran in , 2010Iran in , and 2016 to examine the output multipliers of Iran's economic sectors.This article also compares the results based on Savoie's (2017) method with the driven results according to Friedkin's (1991) and Monize et al.'s (2008) methodology.The latter identifies key sectors using three centrality measures: total effect, immediate effect, and mediate effect.The results show that the "indus try", "water, electricity, gas", and the "transportation and inventory" sectors have always had the highes t connections with other sectors, and also have had the highes t output multiplier.Besides, the "indus try" and the "ICT" sectors are detected as the key and the developing sectors in Iran's economy, respectively.In addition, based on Friedkin's (1991) and Monize et al.'s (2008) methodology, the "cons truction" and "other services" sectors can fos ter Iran's economic growth; even though based on Savoie's (2017) methodology, these sectors relatively had a lower output multiplier.