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INPUT-OUTPUT: STRUCTURE OF THE CANADIAN ECONOMY. DLI Ontario Training Guelph University, Guelph, ON April 11, 2006 Ronald Rioux Industry Accounts Division Statistics Canada. BASIC STRUCTURE OF CANADIAN INPUT-OUTPUT TABLES. Rectangular Input-Output Tables developed at Statistics Canada - PowerPoint PPT Presentation
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INPUT-OUTPUT:STRUCTURE OF THE CANADIAN
ECONOMY
DLI Ontario TrainingGuelph University, Guelph, ON
April 11, 2006
Ronald RiouxIndustry Accounts Division
Statistics Canada
2
Outline
Overview of the Input-Output Accounts Structure within Statistics Canada Structure of Input Output tables Accounting Identities Valuation & Commodity Balance Classifications Input-Output Framework (National & Provincial) Applications References
3
NATIONAL ACCOUNTS AND ANALYTICAL STUDIES
BUSINESS AND TRADE STATISTICS
SOCIAL, INSTITUTIONS AND LABOUR
STATISTICS
INFORMATICS AND METHODOLOGY
MANAGEMENT SERVICES
COMMUNICATIONS AND OPERATIONS
4
SYSTEM OF NATIONAL ACCOUNTS
INCOME AND EXPENDITURE ACCOUNTS
BALANCE OF PAYMENTS AND FINANCIAL FLOWS
PUBLIC INSTITUTIONS
INDUSTRY ACCOUNTS DIVISION (Merge of “INPUT-OUTPUT” and “INDUSTRY MEASURES AND
ANALYSIS” Divisions)
ENVIRONMENT ACCOUNTS AND STATISTICS
5
BASIC STRUCTURE OF CANADIAN INPUT-OUTPUT TABLES
• Rectangular Input-Output Tables developed at Statistics Canada
• Inputs and Outputs of industries are presented in separate rectangular tables, showing Industry by commodity detail, (number of commodities exceed number of industries)
• Input-Output tables consist of 3 matrices
1. Make Matrix (Outputs) 303 industries 727 commodities
2. Use Matrix (Inputs) 303 industries 727 commodities
3. Final Demand Matrix 172 categories 727 commodities
6
Why rectangular I-O tables? They admit detail as available from economic records.
Meaning of each entry straightforward - observed
transactions not combined with fictitious transfers. Serve as a statistical audit for consistency, integrity and
comprehensiveness.
7
DIMENSIONS AND CONFIDENTIALITY CONSTRAINTS
NAICS’s based Classifications:
“W” “L” “M” “S”Industries 303 117 62 25
Commodities 727 469 111 59
Final Demand Categories 172 122 41 18• Interprovincial I-O table adds final demand categories for Exports and Imports with
each province/territory• National I-O tables are published at “S” level. The “S”, “M” and “L” levels are available
on CANSIM II.• Interprovincial I-O tables are only publicly available at “S” level• Confidentiality constraints make it difficult to release provincial data at more
disaggregated levels• Simulation model services are available using “W” level detail
8
Detail of the 303 industries and the 172 categories of final demand
287 Industries (Business sector)
16 Industries (Non-business sector)
303
52 categories of consumer expenditures52 categories of current investment in machinery and equipment53 categories of current investment in construction 4 categories of changes in inventories 1 category of domestic exports 1 category of re-exports 1 category of imports 6 categories of Federal, Provincial and Municipal expenses 1 category of intreprovincial imports1 category of intreprovincial exports172
9
SOME DEFINITIONS
Supplementary Labour Income: This category consists of expenditures incurred by employers on account of labour that can be regarded as payment for employees' services. Employers' contributions to pensions, welfare, employment insurance and workers' compensation programs are included in this category. In addition to these contributions, employers give "severance pay" or "termination pay" "early retirement bonuses" etc. Mixed Income: It consists of payments to owners of unincorporated businesses (e.g. self-employed persons and farmers). the payments represent combined remuneration to both capital and labour which are employed in the production process. Other operating surplus includes: Profits generated by corporations and government business enterprises before taxes and dividends. Capital consumption allowances (depreciation) for both the corporate and unincorporated sectors. Inventory valuation adjustment of non-farm inventories. Interest and miscellaneous investment income. Bad debt, charitable donation
10
BASIC STRUCTURE OF INPUT-OUTPUT TABLES
MAKE
719 X 303
Commo
dities= +
USE
719 X 303
Final Demand
719 X 172 =
Gross output of
commodities
Categories are reflected through all 13 provinces/territories
+
=
+
+=
=
=Industry use of primary factors
8 X 303
Final use of primary factors8 X 172
GDP income based
Gross output of industries
Total use of industries GDP
expenditure based
=
Industries Industries Categories
11
Industry Balance Account level S (2002) as an example
The total production value of any or all industries in the output table equals the sum of the intermediate inputs plus Gross Domestic Product inputs in the inputs table.
As an example, industry 5 for mining and oil and gas extraction, shows a production total value of 83639 million dollars in the 2002 outputs table. The same value of total inputs of this industry of 83639 million dollars is shown as the column total of the 2002 inputs table. The Gross Domestic Product inputs (at market price) shows as rows 52-59 is
53838 million (64.4 % of total) and the intermediate inputs of goods and services is 29801 millions (35.6 % of total) shown as rows 1-51.
12
Commodity Balance AccountLevel S (2002) as an example
The production of a commodity (supply) equals the sum (demand) of intermediate use (inputs table) plus final demand (final demand table)
The domestic production from Canadian industries of the row commodity 23, motor vehicle, other transportation equipment & parts is 136991 millions for all industries in the outputs table.
The Inputs table shows a total use of 66096 millions of this commodity plus final demand total use of 70895 millions equals 136991 millions
13
Input-Output IdentitiesGross Domestic Product Market Price
(2002) Inputs table total column
– sum of rows 52 to 59– GDP market price inputs 1076839
Plus Final Demand table total column– sum of rows 52-59– GDP Market price Final Demand 77364
Equals GDP market price– Income side 1154203
Equals expenditures on GDP– grand total of Final Demand
14
GROSS DOMESTIC PRODUCT AT BASIC PRICE
The values are now published on basic price (CANSIM).
Here is an example as a comparison between the different concepts.
Total of the economy 2002 (millions of dollars)*
Inputs Fin. Dem. TOTAL BASIC PRICE FACTOR COST MARKET Indirect Taxes on products 19169.2 77364.1 96533.3 96533.3Subsidies on products -12033.8 -12033.8 -12033.8Subsidies on production -916.6 -916.6 -916.6 -916.6Indirect taxes on production 54935.8 54935.8 54935.8 54935.8Wages and Salaries 521567.5 521567.5 521567.5 521567.5 521567.5Supplementary Labour Income 71124.1 71124.1 71124.1 71124.1 71124.1Mixed income 75117 75117.0 75117 75117 75117.0Other Operating Surplus 347875.6 347875.6 347875.6 347875.6 347875.6
TOTAL 1076838.8 77364.1 1154202.9 1069703.4 1015684.2 1154202.9
* Includes taxes in final demand
GROSS DOMESTIC PRODUCT
15
INPUT-OUTPUT DATA SOURCESI WITHIN STATISTICS CANADA
BUSINESS AND TRADE STATISTICS
INDUSTRY STATISTICS- Manufacturing Construction and Energy Division- Distributive Trades Division- Services Industries Division- Enterprise Statistics
ECONOMY WIDE STATISTICS- Investment and Capital Stock Division- Industrial Organization and Finance Division- International Trade Division- Prices Division
AGRICULTURE, TECHNOLOGY AND TRANSPORTATION STATISTICS- Agriculture Division- Transportation Division
16
INSTITUTIONS AND SOCIAL STATISTICS - Culture, Tourism and the Centre for Education Statistics
- Health DivisionLABOUR AND HOUSEHOLD SURVEYS
- Labour DivisionSYSTEM OF NATIONAL ACCOUNTS - Income and Expenditure Accounts - Balance of Payments Division - Public Institutions Division - Environment Accounts
INPUT-OUTPUT DATA SOURCESI WITHIN STATISTICS CANADA
17
INPUT-OUTPUT DATA SOURCES
II OTHER FEDERAL DEPARTMENTS AND AGENCIES
- Canada Revenue Agency (T4/T1/GIFI/GST files)
- Department of Supply and Services- Natural Resources Canada- Department of Finance- Treasury Board- Office of the Superintendent of Financial Institutions- R.C.M.P.- National Transportation Agency- Oceans Canada- Health Canada- Bank of Canada
18
III OTHER SOURCES
- Provincial and Territorial Governments
- Municipalities
- Petroleum Services Association of Canada
- Colliers Canadian Real Estate Review
- TSE
- Investment Funds Institute of Canada
- Investor Protection Fund
- Canadian Life and Health Insurance Association
- Annual Reports
INPUT-OUTPUT DATA SOURCES
19
VALUATION OF INPUT-OUTPUT CELLS
• All Cells must be valued consistently in order for tables to balance
• For Analytical Uses I-O tables are valued at producer prices• Producer Price = selling prices at boundary of the
producing establishment (in manufacturing, “factor gate” price) excluding all taxes
• Purchaser Price = valuation of commodities purchased by industries and final demand sectors
• Margins = There are 7 types of margins that are used to convert between purchaser and producer price valuations: retail , wholesale, tax, transport, gas, storage and pipeline
• I-O tables are first balanced in purchaser prices and subsequently in producer prices
20
TYPES OF TAXES ON GOODS AND SERVICES
Federal Trading Profits on Lottery and Race Track Federal Gasoline tax Federal Excise Tax Federal Excise Duties Federal Air Transportation Tax Provincial Wine and Liquor Gallonnage Tax Provincial Trading Profits on Liquor and Lottery Provincial Gasoline tax Provincial Amusement Tax Local Amusement tax Local Retail sales tax Federal Goods and Services Tax Provincial Retail sales tax (including liquor and tobacco) Provincial Harmonized Sales Tax
21
Producer to Purchaser valuation for a commodity
Value
Domestic plant produce a good g3 60 Good is transported to a wholesaler 1 Good is bought by a wholesaler 61 Good is sold by the wholesaler to a retailer 68
Wholesale margins 7 At point of sale tax is levied 12 Final purchaser value to the buyer sold by
retailer plus tax 80
22
Purchaser to producer price valuation of Inputs to a buyer
Suppose the good valued at 80 is a input to an industry which also buys other goods and services and GDP components
The purchaser price to producer price maybe shown
23
Inputs for an Industry
Purchaser Tsp Whls Tax Producer
g1 10 1 2 1 6
g2 30 1 2 27
g3 80 1 7 12 60
s1 10 10
s2 20 3 17Tsp margin 3Wholesale margin 11Tax Margin 16GDP (factor) 50 50Total 200 3 11 16 200
24
National Valuation of Personal Expenditure Category: Household Appliances in $thousands
Commodity description Purchaser Retail Wholesale Tax Transport Producerprice margin margin margin margin price
Household clothes washers & dryers 649,500 150,588 72,011 77,278 3,236 346,387Household dishwashers 280,364 67,472 35,144 32,881 2,247 142,620Mowers, snowblowers, sprinklers, etc. 900,237 210,820 97,498 106,054 15,828 470,037Non-electric furnaces & heating equipment 182 40 0 19 0 123Bulldozers, farm & garden tractors 218,225 43,594 18,369 25,198 2,465 128,599Other agricultural machinery 1,239 0 220 140 23 856Fans & air circulation units, not industrial 77,925 19,246 5,000 9,398 985 43,296Air conditioning equipment, wall & window 99,187 26,787 8,416 11,936 908 51,140Microwave ovens 250,749 74,033 42,759 29,880 7,608 96,469Small household appliances 1,467,926 350,628 151,615 176,002 13,685 775,996Electric furnace & other electric heating equipment 28,543 4,430 4,249 3,339 628 15,897Household refrigerators & freezers 981,700 246,917 109,615 117,299 5,014 502,855Household cooking equipment, excl. microwave ovens 853,151 302,492 112,172 101,224 7,700 329,563Telephone & related equipment, incl. facsimile 275,297 72,404 43,512 33,532 795 125,054
Wholesaling margins 0 0 0 0 0 700,580Retailing margins 0 0 0 0 0 1,569,451Transportation margins 0 0 0 0 0 61,122Indirect taxes on products 0 0 0 0 0 724,180
Total 6,084,225 1,569,451 700,580 724,180 61,122 6,084,225
25
PROVINCIAL AND INTERPROVINCIAL INPUT-OUTPUT
TABLES
• A Provincial Input-Output table looks identical to the National
• An Interprovincial Input-Output table accounts for economic linkages among the provinces and territories, adding 24 final demand categories for exports and imports for each province and territory
26
COMMODITIES
(719 commodities)
INDUSTRIES
(300 industries)
FINAL DEMAND CATEGORIES
TOTALC I INV
G XI
XP
MI
MP
COMMODITIES
(719 commodities)
Intermediate inputs
Gross Output by Commodity
INDUSTRIES
(300 industries)Production
Gross Output by Industry
Indirect taxes on products
Primary inputs
GDP
(income based)
Indirect taxes on production
Subsidies on products
Subsidies on production
Wages and salaries
Supplementary labour income
Mixed income
Other operating surplus
Total Gross Output by Commodity
Gross Output by Industry
GDP (expenditure based)
Accounting framework for the Canadian Provincial Input-Output Accounts
Categories are reflected through all 13 provinces/territories
C = Consumption (personal expenditure)
I = Investment INV = Inventory Change
G = Government current expenditure
XI = International exports MI = International imports
XP = Provincial exports MP = Provincial imports
27
PROVINCE/
TERRITORYEXPORTS IMPORTS
Newfoundland
Prince Edward Island
Nova Scotia
New Brunswick
Québec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon Territories
Northwest Territories
Nunavut
Government Abroad
Ix Pxi IM PMi
Ix =International exportsPxi=Provincial exportsIm=International importsPmi=Provincial imports
Categories reflect 719 commoditiesand indirect taxes
on products by province.
Interprovincial Trade Flow Matrix
28
Interprovincial Trade Flows
In addition to international exports and imports, we show provincial exports and provincial imports.
This introduces three additional constraints.
A) Across regions, total regional imports equal total regional exports, net (interregional) trade balances of regions sums to zero.
B) Sum of foreign exports (foreign imports) of regions equal total national exports (imports).
C) Across regions, total supply equals total disposition.
29
CONVENTIONS FORINTERPROVINCIAL FLOWS
1. Exports can originate from a region if the goods or services are produced in that region or are withdrawn form inventories of establishments in that region. A regional export also occurs when services (e.g. hotel accommodations, meals or entertainment) are purchased within a region by a non-resident while staying in that region.
2. Imports are defined for a region if the goods or services are destined for the region's current expenditure, for capital formation in the region, used as intermediate inputs by establishments in that region, or make up additions to inventories.
30
I/O treatment of imports and exports
Contrast this concept with imports and exports by port of lading or custom clearance. They are in many cases not consistent with true origin and destination.
Since goods and services are valued at approximate basic prices, interregional imports and exports are more complex as goods imported from another region may lead to import of various margins from other regions or abroad.
Exports: purchaser’s price vs producer’s price
The exports are valued at the border (purchaser’s price) which includes a transport margin.Ex: export of a good produced in a factory in Ontario
Purchaser’s price: $15,000.00Producer’s price (factory in Ontario): $10,000.00Transportation margin (transporter from Manitoba) $ 5,000.00
Then: export at purch. price = $15,000.00But: export from Ontario = $10,000.00 (good) export from Manitoba = $ 5,000.00 (transport margin)
Conclusion: Only the producer’s price shows the true transactions.
32
APPLICATIONS
33
National time series in current price
• Example : electric power
•• 1992 1993 1994• G1 800 800 1000
• G2 - - 50
• G3 100 200 250
• S1 1000 1100 1200
• GDP 2500 2600 3000• TOTAL 4400 4800 5500
34
Example : electric power
1992 1993 1994G1 18.18 18.75 18.18G2 - - 0.91G3 2.27 4.17 4.55S1 22.73 22.92 21.82GDP 56.82 54.17 54.54
TOTAL 100.00 100.00 100.00
Relative price change in G3
Change of technology in G2
35
Outsourcing computer services
Data: Time-series C$ I/O Tables (M level)
Commodity #84: Business and computer services
Industries: #43 (NAICS 541) - Professional, scientific and technical services
& #44 (NAICS 561) - Administrative and support services
CANSIM Table: 381-0014
36
Business & Computer Services (commodity)
0%
1%
2%
3%
4%
5%
6%
7%
1971 1976 1981 1986 1991 1996 2001
Shar
e of t
otal g
ross
outpu
t
Output Input Ind. 541 + 561
37
AAFC I/O Model(Based on extended agriculture industries)
38Support Activities for Animal Production1152008
Support Activities for Crop Production1151007
Other livestock112A054e
Poultry and eggs112A044d
Hogs112A034c
Cattle112A024b
Dairy112A014a
Animal Production (except Animal Aquaculture)112A004
Animal Aquaculture1125003
Other Crops111A062f
Fruits & Vegetables111A052e
Potatoes111A042d
Oilseed111A032c
Feed grain111A022b
Wheat111A012a
Crop Production (except Greenhouse, Nursery and Floriculture Production111A002
Greenhouse, Nursery and Floriculture Production1114001
Industries (W)CodeNo
Statistics Canada’s SPSD/M
The Social Policy Simulation Database and Model
40
The SPSD/M
• Statistics Canada’s SPSD/M is an integrated database and tax/transfer simulation model
The SPSD/M concentrates on calculating the first round impacts of Canadian tax/transfer policy on individuals and families
Income taxes, payroll taxes, cash transfers, and commodity taxes.
It makes use of I/O data and modelling techniques to estimate the distributional impact of commodity taxes on families and individuals
41
A new SNA module
providing you with information
at your fingertips!
43
44
45
46
04/21/23 47
References
• Hoffman et al., User’s Guide to Statistics Canada Structural Economic Models, Input-Output Division, Statistics Canada, 1980.
• Miller, E. Ronald and Blair, Peter D., Input-Output Analysis: Foundations and Extensions, Prentice-Hall, New Jersey, 1985.
• United Nations, Handbook of Input-Output Table Compilation and Analysis, Series F, No. 74, New York, 1999.
48
Documents which may be consulted (1): 1. Statistics Canada Catalogue 15-510-XPB, The Input-Output Structure of the
Canadian Economy, 1961-1981 (Occasional). 2. Statistics Canada Catalogue 15-511-XPB, The Input-Output Structure of the
Canadian Economy in Constant Prices, 1961-1981 (Occasional). 3. Chenery, H. B., and Clark, P.G., Inter-Industry Economics, Wiley, New York, 1959. 4. Miernyk, W.M., The Elements of Input-Output Analysis, Random House, New York, 1965. 5. O’Connor, R., and Henry, E.W., Input-Output Analysis and Its Applications, Hafner
Press, New York, 1975. 6. Lal, K., “Compilation of Input-Output Tables: Canada”, in J.V. Skolda (ed.),
Compilation of Input-Output Tables, Proceedings of 17th General Conference of the International Association for Research in Income and Wealth, 1981.
7. Lal, K., “Canadian Input-Output Tables and their Integration with Other Sub-
Systems of the National Accounts” Vienna, Austria, 1985.
8. Statistics Canada Catalogue, 13-589-XPE, Guide to the Canadian System of National Accounts.
49
Documents which may be consulted (2): 9. Statistics Canada Catalogue, 15-201-XIE, The Input-Output Structure
of the Canadian Economy 1999-2000 (Annual). 10. Statistics Canada Catalogue, 15-546-XPE, Interprovincial and
international Trade in Canada, 1992-1998 (Occasional). 11. Statistics Canada Catalogue, 15-601-XPE, No. 2: Service Industries in
the Canadian Input-Output Accounts, Sources of Data and Methods of Estimation. (Occasional).
12. United Nations, System of National Accounts, 1993. 13. Erik Poole, A Guide to Using the Input-Output Model of Statistics
Canada, Technical Series, #58, Input-Output Division. 14. Statistics Canada Catalogue no. 15FOO77GIE, Systems of National
Accounts, A Guide to Deflating the Input-Output Accounts – Sources and methods 2001.
15. The Derivation of Provincial (Inter-regional) Trade Flows: The
Canadian Experience, Technical series #98 by Pierre A. Généreux and Brent Langen, Statistics Canada
50
The International Input-Output Association (IIOA) http://iioa.org/index.asp
United Nations: About the System of National Accounts 1993
http://unstats.un.org/unsd/sna1993/introduction.asp
Bureau of Economic Analysis (BEA): U.S. Economic Accounts
http://www.bea.doc.gov/
Statistics Canada : Input-Output Accounts (SNA module)
http://www.statcan.ca:8082/english/themes/sna-scn/sub/io.htm