(African Economic Research Consortium, 2022) Max, Mendez-Parra
This paper provides an initial approach on the use of input-output tables to calculate
output and labour multipliers. It uses the Ethiopia and Kenya country case
studies to illustrate the procedure.The output and labour multipliers are helpful to
understand the backward linkages and the economy-wide employment generation
of specific sectors. The multipliers indicate the capability of a demand-induced
shock to generate output and employment directly and indirectly. In this way, it is
possible to determine the sectors that, through stimulus of different nature, can
deliver the maximum effect on economic recovery.