TAILIEUCHUNG - Campaign money and public finance_8

Tham khảo tài liệu 'campaign money and public finance_8', tài chính - ngân hàng, ngân hàng - tín dụng phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | the cotton-textile industry together with food processing industry later on by railway construction and the coal and steel industry finally - in the mature economies - by the automobile Before we discuss more specifically the possible effect of tax policy on the economy during various stages of its development some impulses emanating from the leading sectors have to be described more clearly. Hirschman distinguishes mainly two kinds of intersectoral influences on the economic structure backward effects and forward effects .79 The so-called backward effects are the adaptive reactions caused by the additional demand for materials machinery services etc. even demand-induced changes in the labour market . the increase in the quality of the labour force as the consequence of industrial employment fall into this category. The forward effects consist in the quantitative and qualitative increases of output in a particular sector . the additional linkages resulting for the economy from efficiency gains in one sector. The enormous stimulus resulting from the construction of the railroad from east to west coast initially quite unprofitable in the United States for the economic development of the western states may serve as an example. The key sector even if it can reliably be identified may not in all cases serve as the main target of growth-oriented intensive taxation tax preferences may not always have the desired effects on investment. Particularly in developing countries even very profitable activities remain frequently unutilized or underutilized economic growth not only depends on the potential economic linkage of the target sector with suppliers and customers but also on the degree of adaptability with which the newly created market and profit chances are utilized by the private decision-makers. On the other hand - this being another boundary condition - it is very possible that the rate of expansion and the efficiency of the key sector are already .

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