Economic interdependencies and sectoral impacts: An input-output analysis of the Norwegian fisheries and aquaculture sector amidst COVID-19

Abstract

This study investigates the economic interdependencies and changes in the economic structure of the Norwegian fisheries and aquaculture sector during the COVID-19 pandemic through input-output analysis. Utilizing data from 2019 to 2021, I characterize the inter-industry structure of the sector relative to the Norwegian economy by using a Leontief, Ghosh models and the hypothetical extraction method that allow to calculate measures of inter-industry linkages. It is found that fisheries and aquaculture is key for the Norwegian economy as it has strong Hirschman-Rasmussen Indexes (HRI) for backward and forward linkages. Additionally, the sector has a relatively low dependence on imported inputs, and the structure of such imports did not change significantly between 2019 and 2021. A deeper analysis of the fisheries and aquaculture backward and forward linkages, reveals that the sector is highly connected to the food products, beverages, and tobacco industries, with stable dependency levels even amid the pandemic. The findings indicate that the fisheries and aquaculture sector maintained a stable industry structure despite COVID-19, partly due to its ability to adapt to changing global supply chain dynamics and domestic support measures. This research provides insights that may be helpful for policymakers aiming to enhance sectoral resilience and develop targeted economic recovery strategies in the face of future crises.