Economics · Economic Growth and Development Theories
Consider the following statements regarding linkage effects in economic development strategies: 1. Backward linkage is characterised by investment in a final goods industry creating demand for input industries. 2. The establishment of steel mills stimulating coal and iron ore mining serves as an example of backward linkage. 3. Forward linkage occurs when an industry's output encourages the development of industries that use it as an input, such as steel production enabling engineering industries. 4. The strategy of utilizing backward and forward linkages to stimulate growth is the primary mechanism of the Balanced Growth Theory. Choose the correct statements from the options given below:
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- 11, 2 and 4 Only
- 22, 3 and 4 Only
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- 41, 2 and 3 Only✓
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1, 2 and 3 Only
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