ASSESSING THE FINANCIAL SECTOR’S ROLE IN THE ECONOMY THROUGH INPUT–OUTPUT MULTIPLIERS

Abstract

The financial sector has become an increasingly influential component of national economic performance, with its impact expanding steadily over time. Quantifying this influence is essential for policymakers, as it enables them to incorporate the systemic importance of the financial sector into evidence-based decision-making.
Comparative analysis of sectoral contributions shows that, following mining, transportation, and trade, the financial sector has grown rapidly and is expected to remain a major driver of economic activity in the future. Against this backdrop, the present study focuses on the financial sector and applies Input–Output table multiplier analysis to assess its effects. The research draws on the Input–Output table published by the National Statistics Committee in 2019, supplemented by calculations provided by the Asian Development Bank up to 2022.