Input-output Tables Research Articles

Trade and diffusion of embodied technology: an empirical analysis

Using global patents, citations, inter-sectoral sales, and trade data, we examine the international diffusion of technology through imported inputs. We use citations and sales data to characterize knowledge and production input-output tables for individual countries. Using these tables, we construct a measure of the flow of knowledge-weighted and production-weighted technology embodied in inputs imported from the US. We develop an instrumental variable strategy to establish that increases in embodied technology imports lead to increased innovation and knowledge diffusion in sectors within importing countries. Effects are substantially larger for knowledge-weighted imports of embodied technology.

Measuring the Share of Imports in Final Consumption

We use Belgian data on domestic firm-to-firm transactions and ask how the measurement of the share of imports in final consumption is affected when one uses data recorded at higher levels of aggregation. We find that aggregating detailed firm-to-firm transaction data to the firm level and imposing homogeneity assumptions in the composition of firms' input and output do not substantially affect the measurement of the share of imports in final consumption. However, using the national input-output tables alone may understate the share of imports in final consumption and, thereby, the gains from trade.

Analisis Sektor Ekonomi Potensial Pendorong Kemajuan Ekonomi Sumatera

Even though inter-island trade is important and Sumatra is Indonesia's second largest economy, Sumatra imports more from other islands in Indonesia than exports. This research will be carried out descriptively to determine the trade structure of the island of Sumatra with other islands in Indonesia and potential sector purchases in downstream. This study uses secondary data published by the Central Bureau of Statistics (BPS). The secondary data used is the input-output data table between Indonesian regions, domestic transactions based on producer prices according to 6 island groups and 17 business fields in 2016. The results of this study indicate that trade between Sumatra and other islands suffers a slight loss because there are more imports from other islands. compared to export output by Sumatra. The use of output from the island of Sumatra is almost balanced between final demand and intermediate demand. The majority of Sumatra's output circulates in the Sumatra region only. Sumatra trade interaction is dominant with the island of Java. From a sector perspective, the majority of Sumatra's exports come from the manufacturing sector as well as the sector with the largest output value. Even though it has the largest output value, this sector is the most powerful in driving progress in the upstream sector. As for downstream, the Electricity and Gas Procurement sector has the greatest potential in terms of impacting progress on the downstream sector. Keywords : Economic Sector, IRIO, Inter-Island Trade.

Assessing the economic ripple effect of flood disasters in light of the recovery process: Insights from an agent-based model.

To assess the economic ripple effect, this study integrates agent-based modeling (ABM) with a multiregional input-output (MRIO) table to develop an assessment model that considers capacity recovery process. The intermediate and final demands in the MRIO table are used to describe the agents' interdependence. Survival analysis is used to construct capacity rate curves. By defining the first- and second-order ripple effects, ABM is used to capture the ripple process in days. To conduct a case study, the service and retail sectors in Enshi in Hubei, China, are selected as disaster-affected sectors (they were severely affected by the July 17, 2020 flood disaster). The main findings are as follows: (1) With the first-order ripple effect, the losses caused by service and retail are concentrated within Enshi. Enshi's final demand, construction, and raw materials manufacturing sectors as well as Wuhan's construction sector are seriously affected. (2) With the second-order ripple effect, the losses caused by the service and retail sectors expand, forming a prominent industrial ripple chain: "service (retail)-raw materials manufacturing-construction." (3) The direct and indirect losses caused by the service sector are more significant than those caused by the retail sector. However, the loss ratio of the service sector is smaller than that of the retail sector because of its sound industrial structure and strong resilience. Hence, the indirect losses caused by different sectors are not entirely determined by their direct losses; instead, they are also related to the degree of perfection of the structures of different sectors.

COVID-19 Economic Impact and Saudi Stimulus Package Effectiveness

This study examined baseline macroeconomic structure, economic impacts of the COVID-19 lockdown, and government stimulus package effectiveness to mitigate pandemic impacts in Saudi Arabia. By a disaggregated analysis, we identified the sectoral contribution in terms of intermediate, private and public demand, labour compensation and trade by utilising the Input-Output Table. By analysing the point of sales, we demonstrated hard-hit sectors by the lockdown. The Saudi economy shrank by 1% in Q1 of the fiscal year 2020 due to oil price collapse and the lockdown. The stimulus package may rebound the economy (costing external debt). We provide several policy implications. Keywords: lockdown, economic shocks, stimulus package, oil price, Saudi Arabia

The elastic origins of tail asymmetry

AbstractBased on a multisector general equilibrium framework, we show that the sectoral elasticity of substitution plays the key role in the evolution of asymmetric tails of macroeconomic fluctuations and the establishment of robustness against productivity shocks. A non-unitary elasticity of substitution renders a nonlinear Domar aggregation, where normal sectoral productivity shocks translate into non-normal aggregated shocks with variable expected output growth. We empirically estimate 100 sectoral elasticities of substitution, using the time-series linked input-output tables for Japan and find that the production economy is elastic overall, relative to a Cobb-Douglas economy with unitary elasticity. In addition to the previous assessment of an inelastic production economy for the USA, the contrasting tail asymmetry of the distribution of aggregated shocks between the USA and Japan is explained. Moreover, the robustness of an economy is assessed by expected output growth, the level of which is led by the sectoral elasticities of substitution under zero-mean productivity shocks.

Impact of the alternative tax base measurement policy on the VAT revenue performance in the Indonesian agricultural sector

Informality issues and government distributional objectives cause the need for VAT special treatment for the agricultural sector. The treatment forms and resulting impacts vary, depending on each country's conditions and necessities. This study aims to estimate the impact of the alternative tax base measurement policies on the VAT revenue performance in the Indonesian agricultural sector. Using input-output table modeling, the authors found that the policy positively impacts the compliance level and VAT revenue in the agricultural sector but reduces the aggregate national VAT revenues and increases the VAT burden that the agricultural sector entrepreneurs must bear. The normal VAT mechanism is preferred for the long-term goal, but the alternative policy is still needed during the transition period.

Exvatools: Value Added in Exports and Other Input-Output Table Analysis Tools

exvatools: Value Added in Exports and Other Input-Output Table Analysis Tools

European multi regional input output data for 2008–2018

Regioindustry trade flow data are useful inputs for economists and policy makers for a range of planning and disaster-response applications. Within the European Union (EU) whose members enjoy free trade, small variations in these granular trade flows can often propagate to other member-countries far beyond the original trade-shock. In spite of their importance, this information is either outdated or non-existent in the EU as the official databases only provide data at the national-sectoral or regional-only (non-industry specific) level. To fill this gap, we construct Multi-Regional Input-Output (MRIO) tables for 272 European NUTS-2 regions for the period 2008–2018, building on freight transport data as their main trade route across them. The database covers 10 sectors for industry, services and agriculture. We successfully validate our estimates through a direct comparison with a previous MRIO dataset for European regions (REGIO), a sub-sample of countries reporting regional trade flow data as the “ground truth” and a sensitivity analysis reporting relative standard errors well below the MRIO literature average.

Measuring the input rank in global supply networks

AbstractWe introduce the Input Rank as a network measure of relevance of direct and indirect suppliers in Global Value Chains. We conceive an intermediate input to be more relevant for a downstream buyer if a negative shock to that input's productivity affects that buyer more. In particular, in our framework, the relevance of any input depends on: (i) the network position of the supplier relative to the buyer, (ii) the patterns of intermediate input intensities connecting the buyer and the supplier, and (iii) the competitive pressures along supply chains. After we compute the Input Rank from both the U.S. and the world input–output tables, we provide useful insights into the crucial role of services inputs as well as on the relatively higher relevance of domestic suppliers, and suppliers coming from regionally integrated partners. Finally, we test that the Input Rank is a good predictor of vertical integration choices made by 20,489 U.S. parent companies controlling 154,836 subsidiaries worldwide.

Economic Role of Government Budget Revision in the Presence of COVID-19

Fiscal policies are one of the most important instruments of government to guide the progress of the country’s economic development. They find significant use in cases where the economy is experiencing a period of recession, such as the current one caused by COVID-19. This study aims to assess the multiplier effects that budget revision has on the economy for the case of Albania, and more specifically by referring to the initial and revised budget scenario for the year 2020 which is characterized by significant changes caused by the presence of COVID-19. Referring to the multipliers from the input–output tables (IOT) the total effect that the state budget brings to the economy for a certain year is derived. From this paper, it appears that the budget restructuring that takes place during the year does not take into account the multiplier effect in the economy, but is mostly done for specific purposes related to certain government functions. In this context, it is very important that various options during budget revision are evaluated, concluding with the option that has the highest returns for the economy.

Assessing economy-wide eco-efficiency of materials produced in Japan

Reducing environmental impacts related to resource use has been considered a significant challenge for sustainable development, but methodologies to assess national level impact decoupling have not been established adequately. For this, an economy-wide eco-efficiency analysis of Japanese material production and a decomposition analysis are conducted. Combining data from the Japanese life cycle inventory and input–output table, we calculate the eco-efficiency of 451 materials with respect to 13 impact categories and perform a decomposition analysis. Results indicate tendency that material groups, with larger share of value added and environmental impact to national total show lower eco-efficiency. Environmental impacts on foreign supply chains, especially in areas of resource consumption and global warming, are large. These findings imply the necessity of improving the processing of lower eco-efficiency materials, through, for example, intensifying decarbonization and circular economy, and strengthening the production of higher eco-efficiency materials to improve the eco-efficiency of Japan.

Public policy guidelines for a comprehensive, territorial and sustainable development to improve productivity and competitiveness. Case Tungurahua province–Ecuador

In this work we elaborate a proposal for policy guidelines for the improvement of productivity and competitiveness of the province of Tungurahua -Ecuador-, such proposal is based on the theoretical foundations about the concept of a comprehensive, territorial and sustainable development applied to the territorial diagnosis. Herein three analysis techniques were used as a methodological strategy: The Rasmussen Method, which consists of a multisector model based on the Input-Output Tables-; the technique of focus groups for the analysis of perception on the prioritization of key sectors by the population and by the productive sectors; and the Shift-Share Analysis, to determine the level of growth of some sectors with respect to others. The results have allowed the identification of the strengths and weaknesses, as well as, the opportunities and threats associated with the levels of productivity and competitiveness of the province of Tungurahua. Therefore, strategies have been formulated aimed at the comprehensive, territorial and sustainable development of the province, which are built on the strengthening of endogenous capacities in science, technology and innovation, the encouragement of a coordination and articulation between the actors, the strengthening of the local business web and the internationalization of the territory.

The socioeconomic impact of the seafood sector at Ireland’s main ports

The seafood sector in Ireland is an important economic and social driver for communities around the coastline of the island. Many coastal communities in Ireland are situated far from regional urban centres with lower levels of infrastructure making these locations less attractive to industry. In order to capture detailed information on seafood supply chains in Ireland and how these evolve over time, a programme of periodical assessments of the top ten fishing ports was developed. While many studies have assessed the links of seafood sectors with the wider economy at the national level or for a specific port, no studies have been found that assess the sector at numerous ports across multiple regions of a country. The assessment detailed here will be carried out every five years utilizing the same methodology where linkages of the seafood sector with other parts of the local, regional and national economies will be assessed by surveying producers and adapting national input-output tables with the survey results. The survey was carried out in 2019 and the data collected referred to production in 2018. The main findings were that for every four direct employees in the seafood sector, three were employed in the wider economy. Significant variance in multipliers was found across ports and subsectors highlighting the importance of assessing multiple ports and regions when assessing the national seafood sector. In this paper the methodology used to carry out this assessment will be detailed with an overview of the results across the main ports.

Industry‐Specific Productivity and Spillovers Through Input–Output Linkages: Evidence from Asia‐Pacific Value Chain

Global value chains (GVCs) promote the diffusion of knowledge and technology. This paper develops an empirical production model that combines spillovers and productivity growth heterogeneity at the industry‐level. We exploit the GVCs linkages from inter‐country input–output tables to describe the interdependencies of technology within the input–output space and combine that with the Asian‐Pacific and US KLEMS database to estimate productivity growth. The spillover effects from capital deepening, intermediate deepening, and technical change are identified and decomposed into domestic and international effects. Our empirical results find that ignoring the industrial interactions leads to an overestimation of China's productivity growth, and underestimation for the US and Japan. The spillovers of capital and intermediate are found to be significantly positive. The spillovers of technical change received account for 32 to 40 percent of total productivity growth. These findings provide a better understanding of how technical changes are distributed and diffused within GVCs.

Compounded Markups in Complex Market Structures

Using a publicly available input-output database that covers 44 countries and 56 industries, I show that most prices are, on average, two to three times higher than the natural costs of production, costs that include a normal rate of return to capital. The novelty in this research is the argument that the true markups are compounded—they incorporate the markups already existing in the intermediate goods and services (inputs) that a company purchases in a vertical chain of production. A complex market structure, one in which companies sell and purchase intermediate products from each other in both horizontal and vertical directions, is the perfect environment for inflating a price well above its natural level. This research may help understanding the true extent of market power. Market power has a substantial impact in such matters as income inequality, standard of living, and economic development. Keywords: complex market structure, compounded markup, monopoly pricing, world input-output tables

Influence of international trade disputes on the world industrial economic system based on inoperability input-output model

Since January 2018, the U.S. government has announced steep tariffs on a range of imports from China who then retaliated, thus triggering trade disputes. How much economic losses have the international trade disputes brought to the related parties? Which countries and industries are highly sensitive to the trade disputes? These are all important questions that have undoubtedly aroused mass concern of all circles. However, few scholars have carried out related empirical research on this issue, with little dynamic quantitative evaluation results on industry and country level obtained. Based on the static and dynamic inoperability input-output models and on the premise of several assumptions, the industrial economic system's indirect economic losses resulting from the trade disputes between China and the United States are evaluated according to the EU input-output table (WIOD2016) from January 1st to April 4th, 2018. The results show that the trade disputes severely affected the trading among China, the United States, and other countries (regions) in the world and brought about greater economic loss. Meanwhile, the countries and industries highly sensitive to the disputes are picked out. This paper provides an empirical reference for governments, industry management departments and related companies concerned with international trade disputes in assessing losses of similar events.

The Impact of the Formation of Three New Provinces on Papua’s Economic Performance

Currently, there have been three new autonomous regions established as a result of regional expansion in Papua Island, namely South Papua Province, Central Papua Province, and Papua Mountain Province. The formation of new provinces is expected to become a prime mover for accelerating equitable economic development in the Papua region. Therefore, it is necessary to conduct a study to analyze the impact of the formation of the province on the economic performance of Papua Island. The method used is the Final Demand Impact analysis of the Input-Output (I-O) Table. The results of this study indicate that the formation of the province has an impact on increasing the economic output of Papua Island by 37.7 percent and 69.5 percent for an increase in added value and contributing to an increase in employment of 71.1 percent or as many as 1.5 million people. The improvement in the economic performance of Papua Island, in turn, will indirectly have a positive effect on improving people's welfare and strengthening regional competitiveness and the contribution of the regional economy to the national economy. In addition, it also reduces the level of inequality in economic development nationally, which is still dominated by Java Island.

Drivers of household carbon footprints across EU regions, from 2010 to 2015

Urban regions are responsible for a significant proportion of carbon emissions. The carbon footprint (CF) is a practical measure to identify the responsibility of individuals, cities, or nations in climate change. Numerous CF studies have focused on national accounts, and a few combined consumer consumption and global supply chains to estimate additionally detailed spatial CF. However, the drivers of temporal change in detailed spatial CF are largely unknown, along with regional, spatial, and socioeconomic disparities. Here, we uncovered the drivers of changes in household CFs in EU regions, at the finest scale currently available, between 2010 and 2015. This study mapped the household CFs of 83 macro-regions across 27 EU nations and identified the driving factors underlying their temporal change. We combined multi-regional input-output tables and micro-consumption data from 275 247 and 272 045 households in 2010 and 2015, respectively. We decomposed EU regional CF, employing structural decomposition analysis, into five driving factors: emission intensity, supply chain structure, population, per capita consumption, and final demand share. For a deeper assessment of changes in the contribution of consumption patterns, we further categorized the regional CF into 15 factors, including 11 per capita consumption categories. We found that household CF drivers vary depending on region, population density, income, and consumption patterns. Our results can help policymakers adopt climate policies at the regional level by reflecting on the residents’ socioeconomic, spatial, and consumption conditions, for further ambitious climate actions.

スポーツ産業分析用産業連関表の作成

Sports are an important part of the national economy, with significant benefits to individual lives and society, contributing significantly to consumption, investment, productive activity and employment. The value-added amount of the sport industry is estimated as a satellite account of the national accounts system (SNA). In Japan, the Development Bank of Japan has been estimating sport GDP since 2017 in a way that is comparable to European results. Sport GDP represents the total value-added amount generated by sport-related economic activities. However, to analyze how sport participation is linked to economic value, it is essential to take an approach based not only on the value-added amount but also on final demand, such as consumption, investment, and exports. In this paper, we devised a new framework for describing the economic structure of the sport industry and other industries and we developed an input-output table for analyzing the sport sector. The estimation resulted in an output value of 11,374 billion yen and a gross value added of 7,077 billion yen for the sport industry in 2018. With imports from abroad amounting to 962 billion yen, the market size of the sport industry (total supply = total demand) is 12,336 billion yen. The breakdown of total demand is 1,979 billion yen for intermediate demand in the sport industry and 9,687 billion yen for domestic final demand, of which 8,753 billion yen is for consumption and 925 billion yen is for investment. Exports to foreign countries amounted to 670 billion yen.