Because the model is linear, it can include a large number of
economic sectors and presents a positive description of the sizes of
individual sectors and the linkages among these sectors. From a
regional development standpoint, it is important to examine an
industry's interrelations with other sectors in the economy and the
overall effects on the region as a whole when changes in the
industry occur. IO analysis has been used to analyze the structure
of a regional or national economy, to evaluate the potentials of