State 2 other examples of backward and forward linkage.
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An example of an industry that has excellent forward and backward linkages is the steel industry. Backward linkages include coal and iron ore mining. Forward linkages include items such as canned goods. While this industry has strong linkages, it is not a good leading sector.
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hey mate here is your answer.
Hirschman introduces the concept of backward and forward linkages. A forward linkage is created when investment in a particular project encourages investment in subsequent stages of production. A backward linkage is created when a project encourages investment in facilities that enable the project to succeed. Normally, projects create both forward and backward linkages. Investment should be made in those projects that have the greatest total number of linkages. Hirschman called the industries with greatest complementarities as the 'leading sectors'. Projects with many linkages will vary from country to country; knowledge about project linkages can be obtained through input and output studies.
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