The Expansion Input Output Tables

Transcription

1 Global Journal of HUMAN SOCIAL SCIENCE Soioloy, Eonomis & Politial Siene Volume Issue 4 Version.0 Year 0 Type: Double Blind Peer Reviewed International Researh Journal Publisher: Global Journals In. (USA) Online ISSN: & Print ISSN: X The Epansion Input Output Tables By Bui Trinh, Kiyoshi Kobayashi & Pham Le Hoa Kyoto University, Katsura, Japan. Abstrat - This paper is an attempt in order to present some variane of input-output epansion. The System of National Aounts with version 968 and 99 reommended on soial aountin matri, but until now some ountries ompiled SAM from supply and use tables and some other ountries ompiled SAM from input-output system. SAM seems to apply for CGE model but it is not meanin in SAM multipliers analysis. The parallel with ideas of soial aountin system developed by Stone (96), Pyatt and Roe (977) is demoraphi-eonomi modelin was knew by Miyazawa s onept. These ideas developed in order to desribe the interrelation between inome from prodution, inome from redistribution, onsumption, aumulation, it like as no start and no the end in Buddha theory. Keywords : input-output, soial aountin matri, demoraphi-eonomi modelin, System of National Aounts. GJHSS-C Classifiation : The Epansion Input Output Tables Stritly as per the ompliane and reulations of: 0. Bui Trinh, Kiyoshi Kobayashi & Pham Le Hoa. This is a researh/review paper, distributed under the terms of the Creative Commons Attribution-Nonommerial.0 Unported Liense permittin all nonommerial use, distribution, and reprodution in any medium, provided the oriinal work is properly ited.

2 Bui Trinh, Kiyoshi Kobayashi & Pham Le Hoa Abstrat - This paper is an attempt in order to present some variane of input-output epansion. The System of National Aounts with version 968 and 99 reommended on soial aountin matri, but until now some ountries ompiled SAM from supply and use tables and some other ountries ompiled SAM from input-output system. SAM seems to apply for CGE model but it is not meanin in SAM multipliers analysis. The parallel with ideas of soial aountin system developed by Stone (96), Pyatt and Roe (977) is demoraphi-eonomi modelin was knew by Miyazawa s onept. These ideas developed in order to desribe the interrelation between inome from prodution, inome from redistribution, onsumption, aumulation, it like as no start and no the end in Buddha theory. Keywords : input-output, soial aountin matri, demoraphi-eonomi modelin, System of National Aounts. I. Introdution T he Input output etension are one of the useful tools of eonomi researh. The matries an be used for poliy analysis and eonomi plannin, and offers an effiient means of summarizin omple eonomi relationships and identifyin aps in statistial information. In the past deades, there has been a notieable shift of interest from the basi input-output table to the soial aount matri (SAM) as evident from the inreased momentum in the desin, onstrution and use of soial aountin matries in many ountries (Piatt and Roe, 997; Cohen et al., 984; Pyatt and Round, 985). The arument in favor of workin with SAM or etended input-output models is the inreasinly prevalent requirement by poliy makers and the larer publi alike appraise. Soial aountin matries are ompiled aordin to the same aountin priniples used for input-output table; eah transation is reorded twie so that any inflow to one aount must be balaned by an outflow of another aount. The etension of inputoutput table based on linkin the loation of prodution aount and the loation inome and onsumption of institutional as household, Government and enterprise. Another way, the Miyazawa s onept of the interrelation inome multiplier was desined to analyze the struture of inome distribution by endoenous onsumption demand in the standard Leontief model; Author : System of National aounts department GSO, MPI. buitrinhan@mail.om Author : Department of Urban Manaement, Kyoto University, Katsura, Kyoto, Japan. kobayashi.kiyoshi.6n@kyoto-u.a.p Author : The Diretor of onsultant Company on Aountin. these ideas were also inorporated in the familiar soial aount systems developed by Stone (96), Pyatt and Roe (997), and in the parallel developments of demoraphi-eonomi modelin assoiated with Batey and Madden (98); In order to linkae the onept on interreional input output modelin and demoraphi eonomi modelin may be onsidered the funtion system. II. Soial Aountin Matri Bein an etension of the eistin national eonomi aounts, a SAM is a onsistent and omplete representation esentation of the soio-eonomi system that aptures the interdependenies e of institutional roups. It is both a oneptual framework and a data system that t an support analyses of soio-eonomi poliy issues, used to evaluate the soio-eonomi impat of eoenous hanes, or serve as a database for eneral equilibrium modelin. III. Updatin Input-Output Table An input-output table desribes the flows amon the various setors of the eonomy. It represents the value of eonomi transations in a iven period of time. Transations of oods and servies are broken down by intermediate and final use. An input-output table also shows the ost struture of prodution ativities: intermediate inputs, ompensation to labor and apital, taes on prodution. The SAM an be etended by input-output framework or supply and use tables. The first of all we have to ompile or update a input-output table (or supply and use tables). The Leontief system was desribed by equations as follows: A.X+Y=X X= (I-A) -.Y Y = C + G + I + E M M i /TDD i < 4 TDD i = IC i + C i + G i + I i 5 X I A. Y 6 Where A is the diret input oeffiient matri X is vetor of supply or setoral output Y is vetor of final demand (I - A) - is the Leontief Inverse, or matri of multipliers C is final onsumption of household G is final onsumption of overnment I is ross fied apital or apital formation E is eport M is import 0 Year Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I 0 Global Journals In. (US)

3 0 Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I Year M i is import of ommodity i TDD i is total domesti demand of ommodity i From these basi relations of the I/O table, the followin formulas were derived with formula (7) take into aount the three hanes in X, namely prie hanes, tehnial hanes and hanes in Y (final demand) throuh the years. Given the struture of the National s eonomy and the relatively short time break from the last updatin of input-output table whih was for the year t, formula (8) was used to alulate the tehnial oeffiient matri A for the updated year t I/O table, whih assumes that there was no or small hane in pries and tehnial hane Where t i va t t i t i II 00 II (7) t t i t i GI 00 GI (8) va t t k t k VA 00 J VA (9) is the amount of the produt of setor i absorbed as its input by setor in year t t is the amount of the produt of setor i absorbed i as its input by setor in year t II t is an element of the vetor II in 00 or the total intermediate input in year t t II is an element of the vetor II in year t t vak is an element of the value added matri in year t, where k is fator of value added d at fator ost t va is an element of the value added matri in year t, k where k is fator of value added at fator ost VA t t VAJ is an element of the vetor value added in year t is an element of the vetor value added in year t These formulas were used to ompute the tehnial oeffiient matri A and therefore the intermediate demand matri of the input-output table and the value added matri, whih is broken-down into payments to labor and apital, depreiation, and indiret taes. As stated above, equation (8) was used with an assumption that tehnoloial hane and the hane in pries have not ourred durin the last years. One issue with the vetor GI is of ourse the property of this vetor sine it is an( industry) vetor. Therefore this must be realulated to et a ( Commodity) vetor. This ould be done with the data from the last input-output table or S.U.T as follows: From last I/O or S.U.T, the supply matri S is taken out. This is an industry-by-ommodity matri With a simple formula presented below, the ommodity-byommodity GI vetor an be alulated GI s'. GI (0) t Where GIt is vetor of ross input by ommodity of the year t a GIt is olumn vetor of ross input by industry of the year t s is oeffiient matri of S with dimension (industry produt) s is transpose of s with dimension (produt industry) The use matri of the S.U.T an be used to et the use matri of the year t: With U 00 U a U t U t GI t a t. () is oeffiient matri of use table in year t 005 is oeffiient matri of use table in year t From the above formulas, now the A matri of I/O in year t an be omputed usin the followin formula: A U t s (). With s - is an inverse of matri s (ommodity tehnoloy assumption) But while omin at matri A, one problem arose. Some elements of this matri is neative and thus should be orreted by hanin it to 0. Further, to balane the I/O table, we use RAS method. The value added matri and the final demand matri is left to be omputed. The value added matri an be alulated from the formula: AGI t () B. where B is the matri ontainin both the A matri and the value added matri The final demand or the Y was omputed usin equation (). 0 Global Journals In. (US)

4 IV. Competitive and Non-Competitive i/o Tables a) Competitive I/O table: In the ompetitive I/O table the intermediate inputs inlude both ommodities produed domestially and imported. b) Non-ompetitive I/O table: In this kind of I/O tables, the intermediate inputs are broken-down into ommodities produed domestially and ommodities imported from the rest of the world. For the purpose of analyzin the eonomy based on the I/O table, the ompetitive table is not of muh use for the reasons stated above; the ompetitive table does not separate the intermediate inputs whih are produed by domesti industries from the imported intermediate inputs. Thus the preision and the usefulness of the analysis based on the ompetitive table is a matter for aruin. Meanwhile a non-ompetitive table with import learly separated from intermediate inputs produed domestially and thus with two intermediate input oeffiient matri A d (domesti A) and A m (import A) will ive the users a muh better piture of the eonomy. Followin is the indiret method of how to ome from the ompetitive I/O table at a non-ompetitive I/O table. Comin from the basi relations of the I/O table with equations from () to (6), we take the equations (4) and (5) to ompute the ratio of imported oods in Total domesti demand. From this struture of imported oods in domesti demand, the intermediate input matri an easily be ahieved. The value added matri of non-ompetitive table remains the same as in the ompetitive table. In the final demand matri, all the elements are different eept for the eport vetor. V. Sam Buildin In this setion, the onstrution of the SAM will be disussed reatly in detail. Construtin a SAM table is a rather ompliated issue and requires deep knowlede of the SNA, the input-output table, supply and use tables as well as different updatin and balanin methods namely the RAS method, not least the knowlede on the performane of the National s eonomy The Soial Aounts trak the monetary flows between industries and institutions. The relation between a SAM and an I/O table is the fat that the input-output aounts are a subset of the entire soial aounts reorded in a ountry. The soial aounts trak all monetary flows, both market and non-market. The market flows are those between produers of oods and servies and onsumers, both industrial, and nonindustrial (i.e households, overnment, investment, and trade). The non-market flows are those between households and overnment, overnment and households, apital and households and so on. These flows are often alled inter-institutional transfers. A lassial and very simple areate version of SAM is introdued in the table below: Table : SAM Framework epansion from S.U.T (Supply and Use tables). () ( ) () (4 ) (5 ) Industry Commodity Fators Institutions ROW -Industry Make matri 5 -Commodity Use matri -Fators 4-Institutions ROW Eah ell represents a sub-matri. Rows represent an institutional or industry reeipt of inome. Columns represent an institutional or industry payment or ependiture. In a SAM table, rows and olumns balane eatly so all flows are ounted. Followin is the eplanation of the data ontained in eah ell of the above eample of an areated SAM.. Industry is the industry setors from the I/O table. Commodity is the ommodities also from the I/O table. Fators inlude the value-added elements: Types of Labor inomes (L) Type of apital inomes (K) 4. Institutions inlude Households Government Enterprises (basially onsists of orporate profits) Capital Inventory 0 Year Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I 0 Global Journals In. (US)

5 0 Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I Year 5. ROW imports eports Aain, the buildin of SAM etended by inputoutput system requires a ertain soure of data, namely:. Data of Intermediate Inputs and Gross Inputs. S.U.T in year t Table : SAM epansion from I/O table.. Eport and Import of oods and servies 4. Balane of Payment 5. State budet 6. Updated non-ompetitive I/O in year t The detailed elements of the SAM etended by input-output system are in the followin table. () ( ) () (4 ) (5 ) Commodity Fators Institutions I-S ROW -Commodity 5 -Fators 4 - Institutions 4-Savin ROW From table an onvert to table an apply a paper of Bui Trinh, Kiyoshi Kobayashi and Kwan Moon Kim (0). VI. Demoraphi Eonomi Modelin Miyazawa epanded I/O model into a demoraphi model - eonomi modelin and this model has been ompleted by Batey and Madden (98). The model introdues the onept of Leontief inverse matri and epand Leontief etended system for Keynes multipliers, whih an analyze the relationship between inome roups and onsumer roups, respetively. The model is also used to analyze the struture of inome in order to desribe quantitatively the relationship between inome from prodution and inome not from prodution. In whih ase, it is lassified aordin to the system of national aounts published by the United Nations (UN "System of National Aounts - SNA", 99), non-prodution inome inludes inome from property and inome from transfer. Demoraphi - Eonomi model is reated by Miyazawa (966), it s a similar form to the Soial Aountin Matri, in order to desribe the distribution and redistribution of the eonomy. Essentially, the Demoraphi Eonomi model and the Soial Aountin Matri are similar and it ould easily be haned from one model to another dependin on other study purposes. In this study, Demoraphi Eonomi model is developed in institutional reions (households, other type of enterprise, State reion is divided by type Or, A h e e e e. 4 of ta). These institutional reions are onsidered as endoenous variables: savin and relations with forein ountries are onsidered as eoenous variables. This model is a ombination between the notion of interreional I/O model and demoraphi - eonomi model, as presented in matri form below: P=AP+F=(I-A) - F (4) The SAM an be used similarly, note that the matri, A is not only desries prodution aount but also desries re-distribution from property and transfer; the vetor of row total,, represents the endoenous variables, whereas the vetor f represents the eoenous variables. The vetor of endoenous variables,, an be solved in equation (5): = Af + = (I-A) - = M (5) Where, M is the areate multiplier matri. Another way, the Miyazawa s onept of the interrelation inome multiplier was desined to analyze the struture of inome distribution by endoenous onsumption demand in the standard Leontief model; these ideas were also inorporated in the familiar soial aount systems developed by Stone (96), Pyatt and Roe (997), and in the parallel developments of demoraphi-eonomi modelin assoiated with Batey and Madden (98); In order to linkae the onept on interreional input output modelin and demoraphi eonomi modelin may be onsidered the followin system: + f f f f 4 = 4 (6) 0 Global Journals In. (US)

6 A h e e A = e v B e Where: A diret input oeffiients matri; is a vetor of output; is total inome for fold division of household roups; is total inome of Government institutional; 4 is total inome of enterprises institutional; h is an matri (vetor) of households inome roups from prodution; is a vetor of Government inome form prodution (indiret taes minus subsidies); e is an matri of inome of enterprises roups from prodution (operatin surplus and onsumption of fied apital); is a orrespondin matri of household onsumption oeffiients; is a vetor of Government onsumption oeffiients; is a vetor on redistributin between the household roups and Government institutional; is a matri on redistributin of household institutional to enterprise roups;, are ependiture of Government to households and enterprises institutional; e, e, e are matries on redistribute from enterprise institutional to household, overnment and other roups of enterprises. Reardin equation (8) the vetor v, and an identify as below: v = h e (8) = 0 (9) 0 = f = 0 f f f 4 f f 4 (7) e e e We an re-write equation A v..( I B) f =. ' v.( I A) f '.v Where: is interpreted as enlared Leontief inverse, the elementary of inludes diret impat, indiret impat and indue effets by household and overnment onsumptions, they ontain elements whih are larer than those of the (I-A) - matri, beause they = (I (I-B) -.v.(i-a) -.) -.(I B) - (5) B = f. + ' = B f ' ' (0) () () () Miyazawa suested an innovative way of partitionin the system of reions and the developments of demoraphi eonomi modelin assoiated with Batey and Madden (98); the other innovative way for linkin of setoral and institutional, it is also referred as internal and eternal multipliers and relation (4) may be obtained: (4) inlude etra output required to meet the onsumption roups output effets. is interpreted as enlared Miyazawa matri multipliers, the matri an be deomposed as follow: 0 Year Global Journal of Human Soial Sie ne ( C D ) Volume XII Issue XIV Version I (I B) - is referred as internal multipliers of re - distribution inome and (I (I-B) -.v.(i-a) -.) - is referred as eternal multipliers that indued effets by inome from prodution, these mean inome from re-distribution dose not dependent diret inome from re-distribution of eah institutional, but also dependent re-distribution inome of other institutional and indued by onsumption ependiture.. is a matri of prodution indued by endoenous onsumption. v.(i-a) - is a matri of endoenous inome earned from prodution. Note that equation (4) a n be re write as bellow: 0 Global Journals In. (US)

7 0 I ( I A). ( I A) 0 = '.. 0 ( I B). v I 0 ( I B) (6) Where: =.(I-A) - and =.(I-B) - = (I A.(I-B) -.v) - and = (I (I-B) -.v.(i-a) -.) - 0 Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I Year The equation (6) introdue the hierarhial sequene of modelin whih multipliatively separates the enlared Leontief inverse matri and enlared Keynesian multipliers matri, interrelationship multipliers from the interrelationship effets We shall eplain how to define and measure interrelationship feedbak effets in interrelationship settins. Solvin the equation (), (4) and (6) for X and X yields: X = (I-B) -.v. X (7) X = (I-A) -..X (8) These are the interrelationship feedbak effets. The equation (7) and (8) present the relationship between prodution and total inome. The Demoraphi- Eonomi modelin desribed in table 4 below: 0 Global Journals In. (US)

8 - Comm odity - House hold - Gover nment 4- Enter prises 5- Savin 6- ROW 7- Total Table : Demoraphi- Eonomi modelin () () () (4) (5) (6) Comm House Government Enterprises Inves ROW odity hold tment VAT Speial Other Import Diret Transfers State Nonstate FDI onsu taes duties taes mption taes 8 Compen 8 sations of 4 employees VAT 4 Speial 4 onsumption 44 taes Other taes 5 54 Import duties Diret taes Transfers State Non-State FDI (7) Total Year Global Journal of Human Soial Sie ne ( C D ) Volume XII Issue XIV Version I 0 Global Journals In. (US)

9 Below in table is the eplanation of eah ell in the SAM 005 table Cell represents the updated non-ompetitive I/O 005, inludin the intermediate input matri 0 Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I Year Cell Cells, 4, 5, 6 Cells 9, 0, Cell Cell Cell 6, 7, 8 Cell Cell Cell Cell 8 Cell 8 Cell 98, 08 Cell 79, 70, 7 Cell 99, 09, 9,00, 00, 0, 9, 0, Cell Cell 6 Cell Cell Cell Cell 7, 8 Cell VII. Total payments by industries to household (ompensations of employees) Payments by industries to overnment namely indiret taes and import duties Operatin surpluses and depreiations of the enterprises Total forein imports to industry use or payments to imports Payments made by household to ommodities or total final onsumption of household Taes paid by household to overnment Household savin Imports to household final demand Government savin Transfers made by overnment to state ommodities Transfers made by overnment to household Transfers made by overnment to state and non-state enterprises Payments in terms of Diret taes made by enterprises to overnment Inter-institutional transfers by enterprises to enterprises and property inomes Transfers made by the FDI enterprises to the rest of the world Import duties paid to the overnment Import of investment oods Eport Payments from the rest of the world to household Ta payments and transfers from the rest of the world to the overnment Forein transfers Conlusion This paper is an attempt in order to present some variane of input-output epansion. The System of National Aounts with version 968 and 99 reommended on soial aountin matri, but until now some ountries ompiled SAM from supply and use tables and some other ountries ompiled SAM from input-output system. SAM seems to apply for CGE model but it is not meanin in SAM multipliers analysis. The parallel with ideas of soial aountin system developed by Stone (96), Pyatt and Roe (977) is demoraphi - eonomi modelin was knew by Miyazawa s onept. These ideas developed in order to desribe the interrelation between inome from prodution, inome from redistribution, onsumption, aumulation, it like as no start and no the end in Buddha theory. Espeially, The analysis of I/O models and demoraphi - eonomi model showed the hanes of the eonomy ause of different impats to setors and institutional reions. So, alulation on this element is neessary to plan the ta poliy and other poliies. Suh as, analyze the inde of power of dispersion shows that this inde of the setor is very lare, then, if you stimulate development of this setor, it hihly impats other setors in the eonomy 0 Global Journals In. (US)

10 Referenes Référenes Referenias. Baharah, M. (970), Biproportional matries and input-output hane, Cambride University press, London.. Batey P. W. J. & Madden M. 98, The Modelin of Demoraphi-eonomi Chane Within the Contet of Reional Deline: Analytial Proedures and Empirial Results, Soio-Eonomi Plan, Vol.7, No. 5, pp Bui Trinh, Kiyoshi Kobayashi, Kwan Moon Kim (0) The Supply and Use tables: The approah for onversion to input-output table Journal of Advanes in Manaement and Applied Eonomis, Volume, Issue 4. Bui Trinh, Nuyen No Anh (009) Updatin a Vietnam SAM 005 A hybrid approah, DEPOCEN workin paper series No Bui Trinh, Kiyoshi Kobayashi, Nuyen Quan Thai, Nuyen Viet Phon, Pham Le Hoa (0) Analyzin some eonomi relations based on epansion input-output model International ournal of business and manaement, Vol. 7, No. 9- Published by Canada enter of Siene and eduation. 6. CIEM/NIAS New SAM of Vietnam, 000, National Politi Publishin House, Ha Noi, Cohen, S. I., A Soial Aountin Matri Analysis for the Netherlands, D e Eonomist, Summer 988, Miller, R, and P. Blair (985), Input-Output Analysis: Foundations and Etensions, Chapter 7 (pp. 6-60), Environmental Input-Output Analysis, Prentie- Hall 9. Miyazawa, K. (976), Input-Output Analysis and the Struture of Inome Distribution, Leture Notes in Eonomis and Mathematial Systems, Berlin: Spiner-Verla. 0. Sonis M., and Hewins, G. J. D (999), Miyazawa s ontributions to understandin eonomi struture: interpretation, evaluation and etensions,. Geoffrey J.D. Hewins, Mihael Sonis, Moss Madden and Yoshio Kimura. 999 Introdution - Understandin and Interpretin Eonomi Struture. Spriner Verla, Heidelber, Germany.. No.Q.Pham, Bui Trinh and Thanh.D.Nuyen Struture hane and eonomi performane of Vietnam, evidene from three input output tables,006 paper presented at intermediate meetin 006 at Sedai, Japan.. Pyatt, G. and A.N. Roe (977), Soial Aountin for Development Plannin with Speial Referene to Sri-Lanka, Cambride: Cambride University Press. 4. Pyatt, G. and J.I. Round (eds) (985), SAMs: A Basis for Plannin, World Bank, Washinton, D.C. 5. SNA, 968, United Nations publiation, Sales No. E. 69.XVII.), SNA, 99, New York: a publiation of the Commission of the European Communities, International Monetary Fund, Oranization for Eonomi Cooperation and Development, United Nations, and the World Bank, Vietnam GSO, Vietnam input output table, 000, 00, Vietnam Statistis Publishin House. 0 Global Journals In. (US) 0 Year Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I

11 0 Global Journal of Human Soial Siene ( C D ) Volume XII Issue XIV Version I Year This pae is intentionally left blank 0 Global Journals In. (US)