An interindustry analysis of the economy of Cross River State, Nigeria

This study provides needed information for effective development planning in Cross River State, Nigeria. Basic information was developed by using the Leontief input-output model. Quantitative measures of the interrelationships among the various producing and distribution sectors showed the importance of the various sectors and their relationships to outside markets. The analytical framework provided the basis for determining the direct and indirect effects of alternative courses of actions and for forecasting impacts of altered output by a given sector in the overall economy. Linear and homogeneous production functions were utilized to develop the transaction flow matrix to show the distribution of goods and services from the producing sectors to the purchasing sectors. The economic activities were classified into 19 endogenous sectors and three exogenous sectors. A direct requirements matrix was also developed that demonstrated the input structures of all the producing sectors. A matrix of interdependence coefficients was computed to measure the relationships that existed among the sectors. Finally, final demand, income, and employment multipliers were computed to measure the sectorial influence on the Cross River State economy. The results of this study indicated that the regional inter-industry model revealed in detail the impact of a projected change in economic activity on the region. The model provides a sound basis for enhancing economic development in the Cross River State, Nigeria.