Is the financial sector Luxembourg’s engine of growth?

This paper measures the links between financial services and other production sectors in the Luxembourg economy. The focus is on propagation within the country, without considering growth abroad. Among the 29 sectors in the annual input-output tables, financial intermediation is one of only four “key sectors” that the Leontief inverse identifies as featuring above-average forward and backward linkages to other production sectors. In conclusion, the financial sector appears to be strongly linked with the rest of the economy, benefiting from growth in other sectors, which it amplifies and propagates to the whole economy.