IO Table Research Articles

Total Costs Coefficients in the Basic Input-Output Tables

The article presents the results of the author's research devoted to the improvements in domestic developments of Input-Output Tables (IO Tables), significantly increasing their analytical potential. According to the author, the level of development of Russian statistics in the field of Input-Output Tables is quite high – the basic accounts contain not only the symmetrical IO Tables, but also symmetrical tables of domestic products and imports that they are derived from. This is the main condition for implementing the methodology and methodological solutions described and elaborated in the article for compiling the tables with the coefficients of total costs of domestic products and the total need for import of intermediate imports estimates.In the first part of the article, the author characterizes conceptually different versions of the intersectoral model with the features of the technological matrix corresponding to these versions – the basis for estimating the values of total costs coefficients in the national economy. Three «extreme» variants of the economy model representation of indicative country are studied. They define the economy as a part of a global economy within the framework of an inter-country model; in the form of a national model without the allocation of the import matrix in a symmetrical IO Tables (traditional method) and in the form of a national model with the possibility of such allocation (alternative method). The substantial differences in the values of total costs coefficients for the options are described and their preference for study of the country's economy is emphasizedThe second part of the article presents the results of a quantitative analysis based on the basic IO Tables for 2016 data. It contains the estimates of the measure of discrepancy in total costs coefficients values according to traditional and alternative methods; the differences in the associated indicators of intermediate products total costs distribution by specific dimensions of final demand. The analytical possibilities of the alternative method are described, the estimates for the decomposition of final products cost into domestic and imported value added are provided.The author explains the analytical relevance of total costs coefficients using an alternative method in forecasting practice and in the macroeconomic effects of management decisions assessment and proposes to supply the basic IO Tables for 2021 with tables with these coefficients and with the necessary methodological explanations

The Potential Analytical Impact of Significant Sectoral Creative Economy on Thailand’s Economy: A Case Study of the IRS-CGE Model vs. the CRS-CGE Model for Both the National and Provincial Economies

The United Nations has promoted and supported the UNCTAD Creative Economy Programme since 2004 to help countries around the world understand how to promote economic development through creativity in industries. This research article aims to determine whether the creative economy will be the major engine to accelerate Thailand’s economic development in the coming decade or not, and what the major creative economy sectors are that must be prioritized or initiated and focused on. The data implemented in this research cover 2011–2018, which consist of creative economy sector income, the IO table, and the SAM table. The methodology utilized in this research was the ML model, the GREY model for predicting the growth rate of income from the major creative economy sectors contribute to Thailand’s economy between 2019–2025, and the CGE model. The study’s empirical findings show that the significant sectoral creative economy consists of fashion, advertising, Thai food, and cultural tourism, which need to be given more stimulus. Furthermore, the economies of Chiang Mai, and Thailand as a whole, would eventually be high-income economies if creative economy sectors were to be promoted and continuously supported by efficient policies. the economic growth of Thailand and Chiang Mai would eventually become high income whenever these economies allow creative economy sectors to be promoted or supported by efficient policies continuously.

IMPACT OF TOBACCO EXCISE ON SECTORAL OUTPUT AND GROSS INCOME OF INDONESIA : AN APPLICATION OF INPUT OUTPUT ANALYSIS

(Excise on Tobacco Products (CHT) as the largest contributor to the Indonesian economy when compared to other excisable goods reaches 96% so it is considered quite effective to improve the country's economy. CHT has increased every year with the aim of controlling the negative impact of cigarette consumption and relaxing the success of the High Risk Excise Control (PBHT) in eradicating illegal cigarettes. This study aims to analyze the impact of the CHT increase on sectoral output and Gross Domestic Product. The method of analysis in this study is Input-Output using the 2010 IO table (updated in 2019). The classification of the Input Output table is 185 sectors and aggregated into 21 sectors. The analysis in this study is multiplier analysis, distribution and linkage. The result is that the increase in CHT on the tobacco product processing industry has no impact on the national economy as a whole, so it is better for the CHT increase regulation to remain in effect. The government must supervise related parties in the production of the cigarette industry so that fraud does not occur if the CHT increase is still in effect.

Industry’s role in Japan’s energy transition: soft-linking GCAM and National IO table with extended electricity supply sectors

Japan’s energy transition towards carbon neutrality by 2050 will require a shift from fossil fuel energy on the energy supply side. The introduction of new power generation capacities and infrastructures will then lead to increasing demand for materials and industrial products. To capture such industrial energy service demand, we conducted a soft-linking between an integrated assessment model (GCAM) with an input–output framework (IONGES), considering both inter-model and inter-period iteration. The results show that: i) the industrial final energy under the carbon neutrality scenario would be 0.2-0.7EJ more after linking, which is almost the gap between the carbon neutrality and the reference scenario; ii) to achieve carbon neutrality by 2050, more power generation capacities would be introduced in the near-term periods (2020-2030), bringing additional growth afterward. Our soft-linking approach emphasized the role of industries in the energy transition and explored how industries can benefit from an increasingly low-carbon energy supply.

Assessing Shock Propagation and Cascading Uncertainties Using the Input–Output Framework: Analysis of an Oil Refinery Accident in Singapore

The impacts of shock events frequently cascade beyond the primarily affected sector(s), through the interdependent economic system, and result in higher-order indirect losses in other sectors. This study employed the inoperability input–output model (IIM) and the dynamic IIM (DIIM) to model recovery of sectors after a shock event and quantify associated total losses. Considering data limitations and uncertainties regarding sectoral recovery time, a key variable in DIIM, a probabilistic approach is used for modelling uncertainty in recovery times. The event analyzed is the 2011 oil refinery fire accident in Pulau Bukom (PB) island, Singapore, which caused the refinery to shut down for 11 days and be partially operational for several days thereafter. The impacts are assessed using the regrouped 15-sector Singapore IO data of year 2010, with manufacturing sector as the directly affected sector. The initial economic impact of the PB refinery fire is assessed in the top-down framework using the refinery’s contribution to the manufacturing sector and nation’s GDP. The higher-order losses are quantified considering different recovery paths for the directly affected sector and accounting for its inventory. Simulation experiments using synthetic IO tables are also carried out to understand relationship between recovery characteristics of directly and indirectly affected sectors. The results from IIM analysis show that the indirect losses are about 35–38% of direct losses. The DIIM analysis reveal that the utilities sectors (e.g., electricity, water supply and treatment) suffer the largest inoperability among indirectly affected sectors for a given direct damage to the manufacturing sector. The results also illustrate the dependence of overall losses on the recovery path of the directly affected sector, and associated uncertainties in sectoral recovery times.

Measuring digital economy: From the perspective of digital industrialization and industry digitalization

Despite the rapid development of China's digital economy and many studies involving the development of digital economy, there is no unified standard on the measurement of digital economy, and the existing accounting methods all have certain shortcomings. In view of this, this paper constructs a set of accounting system to measure the scale of digital economy industry, from the perspective of digital industrialization and industrial digitization, based on input-output tables. We separate digital economy from traditional industries by splitting and merging IO tables using data such as the Economic Census Yearbook and SAT to calculate the scale of digital economy industry. In this paper, data from Beijing, Tianjin and Hebei provinces in 2017 were used as an example for the calculation. The accounting results show that there is still a large gap in digital economy industry development between Beijing, Tianjin and Hebei, with the total digital economy industry scale, industry digitization scale, digital industrialization scale and the proportion of digital economy value added to GDP in Beijing being much higher than those in Hebei and Tianjin. In addition, due to the characteristics of the respective industrial structures in Beijing, Tianjin and Hebei, the percentages of the four major categories in digital industrialization also show different performance. The share of digital technology application industry in Beijing is much higher than that in Tianjin and Hebei, while the share of digital product manufacturing in Hebei and Tianjin is high.

Compilation of a City-Level & Four-Digit Industry Code MRIO Table Based on Firm-Level Data

Scholars have attempted to compile various multi-region input-output (MRIO) tables for different countries. However, due to city-level data scarcity and methodology constraints, almost no MRIO table covers a large number of cities with more disaggregated sectors in countries with large economies, such as China. Based on two large-scale firm-level datasets, the China Annual Survey of Industrial Firms (CASIF) survey and the China Customs Data (CCD) database, from 2000 to 2013, this paper uses China as a case study and presents a new compilation method to construct an MRIO table covering 284 prefecture-level administrative cities and 334 four-digit sectors, which is by far the most comprehensive MRIO table with the largest number of cities and the most segmented industries in China. Unlike existing MRIO tables constructed based on provincial single-region IO (SRIO) tables, we use information along with various linear constraints implied by sector-level and firm-level statistics. This paper expands on the direct decomposition method by developing auxiliary econometric models necessary for estimations and consistency adjustment. In addition, a comparative analysis shows the reliability of our method, which guarantees better coherence and comparability with the MRIO officially published by the National Bureau of Statistics of China (NBS). Therefore, our proposed methodology provides the possibility of producing more disaggregated MRIO tables in other similar contexts.

The Effect of Institutions on Productivity Spillovers from FDI to Domestic Firms: Evidence in Vietnam

Purpose: The purpose of this study is to investigate the impact of formal institutions and their components on productivity spillovers from FDI enterprises to domestic firms’ TFP in developing countries like Vietnam. Design/methodology/approach: The study, conducted in two steps to explore the relationship, is to estimate the firm's TFP in accordance with the semi-parametric method of Levisohn and Petrin (2003). Regression is in accordance with the equation with panel data and adjusted by Driscoll and Kraay standard errors. An unbalanced panel data, related to more than 61,600 Vietnamese manufacturing firms from 2012 to 2017, is combined with the Provincial Institutional Quality Survey (PAPI index) and IO table. Findings: The local institutions have a positive impact on promoting learning ability and increasing productivity of domestic firms, especially small and medium enterprises (SMEs) that take better advantage of this effect. Vertical linkages with FDI enterprises assist local firms to increase productivity while horizontal linkages bring in negative effects. Domestic enterprises with high productivity (in the top 25%) receive positive spillover effects from horizontal linkages and vertical linkages and gain positive impacts of the institution on productivity whereas the group of low-productivity enterprises records negative impacts. This research highlights those enterprises operating in the region where institutions have transparency, accountability, participation in comments and effective corruption control can absorb spillovers and improve their productivity as well as the transparency and corruption control are recognized as having a positive impact through horizontal linkages. Research limitations/implications: With the limitation of research data being conducted only on manufacturing enterprises, there is a lack of data on the impact of service enterprises. The study only stops at understanding the impact of formal institutional effects on productivity spillovers whereas informal institutional effects will be studied in the future. Furthermore, the productivity spillovers of FDI enterprises are explored in general besides other FDI forms that will have different productivity spillovers like offshore. From the results of this study, the governments of developing countries should improve their institutions to encourage local enterprises to take the advantage of spillover effects from FDI enterprises as well as pay more attention to regional factors by supplementing development priority policies based on the capacity of each region. Institutional quality at provincial level has a positive impact on productivity spillovers; consequently, it is essential to have policies for further institutional improvement. Originality/value: This is the first research paper on the impact of the institutional factor at provincial level on firm’s productivity in developing countries like Vietnam. Theoretically, the impact of formal institutions on spillover effects from FDI enterprises is also clarified. In addition, our findings have implications for local economic development policies: vertical linkages promote domestic firms to increase their productivity while horizontal linkages of FDI enterprises in the same industry generate adverse impacts. This paper suggests some feasible solutions for SMEs in developing countries towards their productivity improvement.

China's investments in renewable energy through the belt and road initiative stimulated local economy and employment: A case study of Pakistan

Since China's announcement of the Belt and Road Initiative (BRI) in 2015, much focus has been drawn on the environmental impacts of China's energy investments in the countries along the BRI. The economic and social impacts of these investments, which are also important for the wellbeing for local people, left largely uninvestigated. In this paper, we used China's renewable energy investments in Pakistan as a case study to investigate the contributions of these investments on local economy and employment. Through IO table analysis, we found that the 28 renewable power plant projects invested by China till now potentially provided 8905 jobs and generated around USD 39.8 million production values in related sectors in Pakistan, including USD 30.7 million from wind power plants development and 9.1 million from solar. When Chinese companies act as engineers and constructors, the increase of production value in relevant sectors in Pakistan (USD 6.05 million per 100 MW) are higher than wind power plant projects with other magnitude of engagement (3.82 million as a fully sponsor, 4.19 million as only finance supporter and 2.29 as equipment provider). Wind power plants will create more jobs and increase more production values than solar power plants. This study identifies the economic and social benefits of BRI renewable energy investments from China and the driving mechanism, thus providing basis for promoting renewable energy investments in countries like Pakistan so that they can gain new drive for social and economic growth from the global trend of low carbon transition.

The impact of ICT progress at the inter-industry structure: A comparative study of Japan, the U.S., and China using IO tables

The impact of ICT progress at the inter-industry structure: A comparative study of Japan, the U.S., and China using IO tables

Methodological Review of impact studies of airports: A qualitative and quantitative proposal for the Airport of Málaga-Costa del Sol

Airports have become fundamental axes of the economy of many countries. In Spain, the airports managed by Aena1 ended 2019 with more than 274.4 million passengers, which was 4.4% more than the previous year. They are not only important for tourism but also for other sectors that depend on imports and exports. For years, the impact measurements have included the IO tables, but we are now questioning whether they constitute the best measurement model. The research reveals that the main problem is the application of different methodologies used by airports and countries. For this reason, we propose a model to measure the economic impact of the Malaga-Costa del Sol Airport that incorporates the importance of the tourism. This study is conceived as a guide for studying the impacts of any airport around the world. The review reveals that the social accounting matrix with changes in the variables involved is the best available measurement model. The conclusions reflect that the qualitative point of view is necessary. This can provide data that, together with previous studies, will result in multidisciplinary research that will allow us to gain a much deeper understanding of these infrastructures. The conclusions have practical and theoretical implications for impact studies.

Economic spillover effect of grass-based livestock husbandry on agricultural production—A case study in Hulun Buir, China

As an important part of agriculture, the changes of grass-based livestock husbandry (GBLH) production will inevitably have a significant impact on agricultural sectors and regional economy. We firstly measured the total factor productivity (TFP) of GBLH from 2001 to 2016 by DEA-Malmquist model. Secondly, an ORANI-G model was constructed based on IO table to analyze the economic spillover effect of GBLH on agricultural production in Hulun Buir. The results indicate that the TFP shows an upward trend with an average annual growth rate at only 1%. The TFP increase leads to a significant growth of GDP, export and import (0.07%, 0.11%, 0.02%), improving technical efficiency can further enhance these impacts, while they weakens if it was decreasing. Moreover, the increase of efficiency leads to a growth of output of agricultural products, especially livestock products. The supply and transfer out of livestock products can reach a 3.27% and 6.59% improvement respectively. Additionally, the increase of livestock production and the decrease of price will inevitable lead to a growth on demand, and improving the efficiency can gain more labor employment. In a long term, the increasing efficiency of GBLH is also an adaptation measure to realize win-win for both ecological and economic benefit.

An alternative approach to the construction of multi-regional input–output tables of the Czech Republic: application of the CHARM method

The main scope of the paper is to review the construction method of (multi-)regional input–output tables (RIOTs) in the Czech Republic at the NUTS 3 regional level. We compare the estimation of regional IO tables based on a modified cross-hauling adjusted regionalisation method (CHARM) applied by the authors with application of the hybrid approach of (Sixta and Vltavska in Stat Stat Econ J 97:4–14, 2017) from the Department of Statistics at the University of Economics in Prague. The aim of the presented paper is to contribute to the discussion about the suitability of alternative methodological approaches from the perspective of quality and time. We assume that despite the lack of official, published RIOTs by state statistical offices, the existing methodology of the relatively simpler non-survey CHARM method represents an adequate option for the generation of regional input–output tables suitable for further analytical research.

Toward the development of subnational hybrid input–output tables in a multiregional framework

AbstractEnvironmental input–output analyses can be a useful decision support tool at the subnational level, because of its ability to capture economic and environmental impacts at other geographical levels. Yet, such analyses are hindered by the lack of subnational IO tables. Furthermore, the lack of physical product and waste flows in what is known as a “hybrid” table prevents a range of consumption‐based and circular‐economy‐type analyses. We demonstrate the development of a multiregional hybrid IOT (MRHIOT) along with environmental extensions at the subnational level and exemplify it for the case of Belgium. The development procedure discloses a novel approach of combining national hybrid tables, subnational monetary tables, and physical survey‐based data. Such a combination builds upon a partial‐survey approach that includes a range of techniques for initial estimation and reconciliation within a balancing procedure. For the validation of the approaches, we assessed the magnitude of deviations between the initial and final estimates and analyzed the uncertainties inherent to each initial estimation procedure. Subsequently, we conducted a consumption‐based analysis where we assessed the carbon footprint (CF) at the subnational level and highlighted the CF inherent to the interregional linkages. This study provides methodological and application‐based contributions to the discussion on the relevance of hybrid subnational tables and analyses compared to national ones. The proposed approach could be replicable to some extent for further developing subnational MRHIOT. The study is expected to foster more research toward the development of further subnational MRHIOT as well as its associated wide‐ranging applications.

The role of rurality in determining the economy-wide impacts of a natural disaster

Rural areas may be highly vulnerable to natural disasters because of their lower economic diversification and a higher incidence of sectors that may suffer from a larger impact produced by these adverse events. In addition, because of their trade dependence, local effects can be transmitted to neighbouring regions more diffusely so amplifying total impacts. This paper aims to quantify the economy-wide impacts generated by the earthquake sequence that mostly hit a markedly rural area of Central Italy in 2016–2017. To this purpose, a non-linear programming model based on a multi-regional IO table with a mixed territorial scale is adopted. Results indicate that some negative effects are transmitted outside the seismic area and a few positive effects are also produced. Moreover, they confirm that rural areas are more vulnerable to disasters and that the effects of disasters in these areas are more likely to be transmitted to the neighbouring space.

Using IO Table in Analyzing the Environmental Burden of PET Plastic Packaging Industry in Vietnam

Plastic industry plays an important role in the economic development. The PET plastic packaging industry is the largest segment of the plastic industry, accounting for 37.43% of GDP of Vietnam's plastic industry. However, the current production and consumption of PET in Vietnam are having significant environmental impacts. This study uses input-output tables (IO tables) in 2007, 2012 and updated for 2018 to determine the current status of plastic production and plastic consumption (by economic sectors) in Vietnam during the period of 2007 - 2018. At the same time, the research integrates IO tool and LCI to identify the environmental burden in the PET plastic packaging life cycle through PET’s demand of other economic sectors. The results show that the two biggest PET plastic consumers are food processing sectors and electronics sectors, and these industries are also responsible for the highest indirect GHG emissions. This result can form the basis for developing a sustainable plastic packaging production and consumption strategy for Vietnam.

The Impact of Government Expenditure on Banten Economic Growth in 2010 – 2017

Government expenditure is one of the factors driving the economic growth of a region. During 2010 to 2017, realization of Banten government expenditure continued to increase from 11 trillion to 36 trillion. However, Banten's economic growth from 2011 to 2017 tended to slow down from 7.03 percent to 5.71 percent. This study aims to determine how the impact of government expenditure on Banten economic growth and identify government expenditure in the form of capital spending that has a positive effect on Banten economic growth. Capital spending as a component of government expenditure directly related to the government's development program is expected to be able to encourage economic growth in Banten. The method used in this study is the impact analysis of Banten Input-Output (I-O) Table 2010 and panel data regression analysis in eight districts/cities during 2010 to 2017. The results of analysis with IO Table show that government expenditure has a positive impact on Banten’s economic growth. Then the panel data regression analysis results show that all types of capital spending have a positive effect, but only spending for road, irrigation, network (BJIJ); and building (BGB) which have proven to have significant effects on Banten's economic growth.

Analysis of urban carbon metabolism characteristics based on provincial input-output tables

To identify the key contributors of urban carbon emissions as well as the acting paths, it is necessary to analyze the carbon flows from a systematic perspective. Thus, the concept of urban carbon metabolism was introduced in this paper and correspondingly input-output analysis (IOA) and ecological network analysis (ENA) were combined to conduct the carbon metabolism analysis. Concretely speaking, the urban IO table was compiled based on the provincial one and then the direct and embodied urban carbon flows were accounted. Subsequently, the carbon metabolic network model was established, through which the characteristics of the metabolic network were further analyzed to better reveal the contributors and influencing factors of carbon emissions. Dongguan, a city famous as the “factory of the world”, was chosen as the case. The results indicate that the total direct and embodied carbon flows were mainly concentrated in manufacture. Manufacture was found to be major factors affecting other compartments through indirect interplay. A trophic hierarchical structure was found, where compartments can be classified into primary producers, secondary producers, primary consumers and secondary consumers according to their metabolic characteristics in use of energy. Electricity, gas & water were defined as secondary producer, and its self-induced carbon flows accounted for more than 95% of the carbon flow conversion within this compartment. By further comparing the metabolic characteristics in Dongguan with that of Guangdong Province and other cities, measures were suggested to heighten energy utilization efficiency and promote positive interactions among compartments to promote the carbon emission reduction in Dongguan.

Decomposing value added in gross exports

Several papers using intercountry IO tables have developed frameworks to decompose value added in gross exports and to remove potential double-counting in intermediate inputs. But these papers rely on different definitions for the domestic value added, foreign value added and double-counting terms, depending in particular on the perspective from which gross exports are decomposed (world level, country level or bilateral level). At this stage, it is very difficult for any user of value-added trade statistics to know what is calculated and which type of decomposition should be used. In this paper, we provide a general framework that relies on extraction matrices to unambiguously and consistently define domestic and foreign value-added terms in the world, country and bilateral perspective. This framework allows us to classify existing decompositions based on the perspective taken and their definition of double-counting. We also indicate the most relevant decompositions for different types of trade analysis.

Evaluation of energy intensity of transport service sectors in Vietnam.

This research analyses energy intensity of transport service sectors in Vietnam and its changing trend in the past years using IO tables and LMDI decomposition method. Energy consumption of 38 economic sectors in 2007, 2012 and 2018 is determined, of which transport service sectors were the second largest energy consumer (17.71Mtoe), occupied 18.5% of total energy consumed in Vietnamese economy in 2018. In terms of energy intensity, a rising trend is seen in all transport service sectors, of which four most important transport services including bus and other road passenger transport, freight transport service by road and pipeline, waterway shipping freight and aviation passenger reached 0.62kgoe/USD, 0.72kgoe/USD, 0.60kgoe/USD and 0.62kgoe/USD in 2018, respectively. The ineffective structural change and ineffective energy intensity change are the reasons behind the upward trend in these sectors. Using Leontief inverse, the study also unveils how demanded on transport services by other economic sectors in terms of energy and how much energy embodied in all inputs of any economic sector. In order to keep the energy intensity stable and gradually decreasing, the recommendations are focused on effectiveness in structural changes and improvements in energy efficiency.