Input and Output

Input and Output

The Input -output Division was established in 2010 after the Department of Statistics prepared the 2006 Input -output Tables.

Input -output tables are considered a statistical description of economic performance. These tables deal mainly with methods of analysis of subordination and interlacement between different economic sectors.

Through input -output tables, economy is divided into a number of sectors. Knowing that number of sectors and commodities included in the table depends upon the objective of the economic analysis and the desire of the planner on one hand and the availability of statistical data on the other. Correlations of each sector are presented in simple equations, including the resources and uses of each sector. Usually tables are used known as Input -output or supply and use tables.

Tables of inputs and outputs are considering of great importance in analysis, planning and providing decision makers with the data that help them in their decisions.

 These tables are concerned with the presentation of mutual relations between different economic sectors, industries with commodities (using the International Industrial Standard Classification of Economic Activities and the Central Commodity Classification) these tables represent a square matrix in which the group of sectors is horizontally placed as productive sectors, as the same sectors are vertically positioned as used sectors.

Hence each sector occupies a row and columns in the matrix where distribution of the sector’s products appears in row to other sectors, while the uses of this sector from the products of other sectors are shown in the column for this sector.

At the beginning in order for forming the input -output tables we must construct supply and use tables, which need a lot of details and then do the different balance between the supply side and the demand side then after reaching the balance stage (supply = demand) which is through the manual balance at the beginning and then moving to the automatic balance (Mathematically) and then converting these tables into square tables (columns = rows) which are input -output tables.

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Supply and Use Tables

 The importance of supply and use tables appears from being. It Reflect the extent and accuracy of statistical surveys and their limitations.

The supply and use tables are considered to be the Starting basic point for structuring input -output tables.

It’s also the basis for preparing GDP estimations according to the three methodologies (expenditure, income and production).

Supply and use tables are considered a Main component of the social accounts matrix.

Supply side components

  • Domestic product matrix:

It shows the local products which can be evaluated More than a price, but the international recommendations prefer to evaluate the local production at the basic prices in order to show the real cost of the commodity and thus to identify the economic impact, Their data are often obtained through surveys at most .

  • Imports matrix:

It shows the value of goods imported from the outside world according to the commodity type, its data are obtained from foreign trade which is valued at CIF price (including insurance and shipping costs up to the borders of the importing country).

  • Margins matrix (trade and transport):
  1. Trade Margins: In order to achieve a trade margin there must be a Sale and purchase process for the commodity. There are two types of these margins (retail and wholesale)
  2. Transport margins: margin of transport are achieved when there is a commodity needed to be transported, and there shall be a third party specialized in the Transporting of goods.
  • Matrix of taxes and subsidies

 This matrix includes the following:

  1. Taxes and customs fees obtained from Customs and the Ministry of Finance.
  2. Sales tax to be retrieved on intermediary goods but not retrieved on final goods and obtained from field surveys Implemented by the General Department of Statistics and the Income and Sales Tax Department.

Components of usage side:

  • Intermediate Demand Matrix: This matrix shows the goods and services that are used by economic activities as production inputs and are evaluated at purchasers’ prices.
  • Final Demand Matrix: Include on
  1. Final household expenditure : shows what is spent by households on goods and services
  2. Final government expenditure: It is the final cost of the government production calculated after deducting the market and non-market sales.
  3. Final expenditure of non-profitable organization who serves households: It is the final cost of the non-profitable organization production calculated after deducting the market and non-market sales.
  • Capital formation matrix: It shows the change in fixed assets during the year.
  • Change in stock matrix: It shows the change in commodity inventory (production/ intermediate consumption) during the year.
  • Exports Matrix: It shows the export and re-export of goods and services during the year.

Balance phase (supply = demand): –

After completion of texturing the supply and demand tables then the balance operation start according to an economic theory (supply= demand) where that the supply of the goods or services must be equal to the required ones, and  There are several methods for balancing such as manual and automatic Arithmetic methods.

After obtaining balanced supply and use table through some matrices, statistical and mathematical operations, these tables can be converted into tables of input and output matrix. and also tables of matrix of social accounts can be established.

  1. Gross Domestic Product (GDP) by production approach.
  2. Gross Domestic Product (GDP) by expenditure approach.
  3. Gross Domestic Product (GDP) by production factors input approach.
  4. Sectors inter- linkages, front and back links between various economic sectors.

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