4.1 Backward and forward linkages (continued)
- Figure 6: Forward linkages (export weighted)
Figure 4 shows that finance has more forward than backward linkages in New Zealand. The relative importance of finance in New Zealand in terms of forward linkages is similar to that in Belgium, Finland and Germany, but lower than in Australia, Denmark, Norway and the United Kingdom.
Alternatively, exports can be used as a weighting factor. Backward and forward linkages then show the effect on industries of a unit increase in export demand. The results of weighting backward and forward linkages by exports are reported in Figures 5 and 6. New Zealand’s most important exporting industries in terms of backward (Figure 5) and forward (Figure 6) linkages are food, beverages, tobacco; trade, restaurants, hotels; transport and storage; and textile, apparel, leather. Transport and storage is also important in Australia, Denmark and Finland. The effects of a unit increase in export demand on the transport and storage industry in Norway and the United Kingdom are more difficult to assess because of the industry aggregation in these countries. Trade, restaurants, hotels appear to be more important for exporting in New Zealand, and to some extent in the United Kingdom, than in the other countries.
