Linkages between industry and services and their implications for urban employment generation in developing countries

The paper examines the nature and extent of linkages between industry and services, using an international input-output table for the Pacific Basin countries. Empirical evidence seems to suggest that the manufacturing sector contributes to urban employment creation in developing countries more through its interindustry and intersectoral linkages, as well as its income-induced demand for various types of services, than through its direct employment effects.