## Inter-sectoral Linkages and Local Content in Extractive Industries and Beyond – The Case of São Tomé and Príncipe

_IMF Working Papers, September 1, 2007_

## Source details

**Canonical URL:** [Inter-sectoral Linkages and Local Content in Extractive Industries and Beyond – The Case of São Tomé and Príncipe](https://www.imf.org/en/publications/wp/issues/2016/12/31/inter-sectoral-linkages-and-local-content-in-extractive-industries-and-beyond-the-case-of-so-21123)

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## Bibliographic details
- Authors: Alonso A Segura Vasi, Walter Zarate, Gonzalo C Pastor Campos, Ulrich H Klueh
- Published: September 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451867770.001

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### Summary
- The paper offers specific inputs to the debate on local content promotion in the oil industry using São Tomé and Príncipe as a point of reference.
- Emphasis is placed on inter-sectoral linkages and institutional pre-conditions for local content promotion.
- Based on an Input-Output description of the economy, the paper quantifies the consistency between prospective oil sector development and the growth of other sectors of the economy.
- The paper assesses a number of sectoral policies and "niche" activities within the oil industry that would maximize local benefits from oil exploration.

### Approach and Methods
- Uses an Input-Output description of the economy to quantify linkages between the oil sector and other sectors.
- Focuses on institutional pre-conditions required for effective local content promotion.
- Identifies and evaluates sectoral policies and niche activities within the oil industry for maximizing local benefits.

### Key Assessments and Findings
- Quantification of consistency between prospective oil sector development and growth in other sectors is central to the analysis.
- Inter-sectoral linkages are highlighted as critical for translating oil sector activity into broader economic growth.
- Institutional pre-conditions are necessary to ensure local content policies yield intended local benefits.
- Sectoral policies and targeted niche activities within the oil industry can increase local capture of benefits from oil exploration.

### Policy Recommendations and Niche Activities (as assessed)
- Design local content promotion with explicit attention to inter-sectoral linkages to stimulate growth across sectors.
- Strengthen institutional pre-conditions to enable effective implementation and enforcement of local content policies.
- Prioritize sectoral policies and identify niche activities within the oil industry that are most likely to generate local employment, inputs, and capacity building.

### Subjects and Keywords
- Subject: Agricultural sector, Oil, Oil exports, Oil production, Oil sector
- Keywords: final demand, oil industry, primary sector, total output, WP

*Inter-sectoral Linkages and Local Content in Extractive Industries and Beyond – The Case of São Tomé and Príncipe (IMF Working Paper).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/inter-sectoral-linkages-and-local-content-in-extractive-industries-and-beyond-the-case-of-so-21123_