Archive:Supply and use tables - input-output analysis
- Updated in August 2011 based on 2006 data, for more recent data please check: Further Eurostat information, Main tables and Database.
Measuring production in an economy is an essential task for any statistician wanting to calculate GDP. To capture this process, where input of labour, capital, goods and services are used to produce outputs of goods and services, you need a vast amount of information. For this reason statisticians and economists use a statistical and analytical framework called supply, use and input-output tables.
Since 2011 consolidated European Supply, use and input-output tables are available allowing macro analysis.
A consolidated European Union and Euro Area Supply-Use System and Input-Output Tables
For the first time ever Eurostat has published in May 2011 a consolidated annual Supply-Use system and derived Input-Output Tables for the European Union (EU) and the Euro Area. These tables show at a glance the production and use of products distinguishing 59 industry branches and 59 product groups.
Table 1 illustrates the data contained in the Supply and Use tables aggregated to six product groups and six sectors.
Under the European System of National and Regional Accounts (ESA95), EU Member States transmit to Eurostat supply and use tables annually and input-output tables 5-yearly. For each Member States, the supply use tables (SUTs) at basic prices were estimated with the available supply use tables (at purchaser's prices) and (in part confidential) auxiliary valuation data. Due to confidentiality reasons, the Supply Use tables at basic prices are published only for EU27 and euro area.
The consolidated European tables result from the aggregation of national tables and a rebalancing treatment of the intra EU (or intra EA) import use total with the intra EU (intra EA) export supply totals.
Statistical benefits of supply and use tables
Supply and use tables serve primarily statistical purposes and provide an integrated framework for checking consistency and completeness of national accounts data.
In order to make GDP calculations more reliable, statisticians use three different methods (the production, income and expenditure approach). These three methods may generate different results. In order to eliminate these differences and to find the most accurate result, statisticians often use supply and use tables as a balancing framework that reconciles the three methods of GDP estimation.
The supply and use tables provide the main macroeconomic aggregates such as GDP, components of value added and output by industry, import, final consumption, gross capital formation and export.
The supply table describes the supply of goods and services, which are either produced in the domestic industry or imported. The use table shows where and how goods and services are used in the economy. They can be used either in intermediate consumption — meaning in the production of something else — or in final use, which in turn is divided into consumption, gross capital formation and export. Furthermore the use table shows the income generated in the production process.
A concrete example: the supply and use of cars
To make it concrete, imagine an economy with three industry sectors: agriculture, manufacturing and services, and for simplicity we follow only one product in our example: cars. These cars are either produced domestically or imported. That is a short description of the supply side.
The use table shows how the cars are used in the economy. Firstly there is intermediate consumption, which means that the cars are used in the production of another product. For example, when a car is transformed and sold as a camping car, then it has been used by the manufacturing industry.
Secondly there are different sorts of final use. When a car is sold to a consumer, then it has been used for final consumption. But when a car is sold to a catering firm or a farmer for professional use, it has been used as an investment. Finally the car can be exported to another country. The sum of all these different uses should equal the total supply for each product. Since supply and use are recorded in monetary terms it is required that both are valued in the same way, either in basic prices or at purchasers’ prices.
Figure 1 shows the supply and the use of the car industry within EU27 in 2006.
Analysing the economy with input-output tables
The input-output analysis has been developed by the economist Wassily Leontief in the 1930s describing inter-industry relations in the economy. A product by product Input-Output Table shows how much of each product is being used as input for the production of another product. Similarly, it also shows how much of each product is consumed by different user categories (production, households, government, non-profit institutions serving households, investment and foreign trade).
An example of Input-output analysis: 11% of EU jobs depend on exports
The input-output modelling permits to answer the question of how many jobs depend on exports. As a production factor input into industrial branches, labour is a significant component of GDP: in 2006 for EU27 compensation of employees were forming 57% of total value added (Table 2). Through the Input-output table and a Leontief model, one can estimate that the exports of products outside the EU count for about 11% of job-related income. In 2006 in EU27, the public services (including health and social) and the construction were the first two sectors creators of jobs. This example is taken from a Statistics in focus (22/2011).
Depending on which assumption on technology and sales structure is made, the Supply and Use tables can be transformed into symmetric input-output tables. At the European level, the consolidated EU27 and EA17 Supply and Use Tables were subsequently transformed into symmetric product by product input-output tables (IOTs) using the so called industry technology assumption (see Model B, Eurostat Manual of Supply, Use and Input-Output Tables, p. 349).
The product by product IOT for EU27 is shown in (Table 2).
An extension to environmental accounts: Carbon dioxide emissions associated with EU consumption: 9 tones CO2 per capita in 2006
European Input-Output tables have been extended to the environmental accounts by modeling-estimations. The environmentally extended supply, use and input-output tables (EE-SUIOT) have been used to estimate the CO2-emissions induced by the final use of products within the EU (data on emissions of 7 other gases are also available). Beside the CO2 emissions emitted by EU industries in order to create products for final use, this estimate also takes into account CO2-emissions "embodied" in imports to the EU. The latter arise along the worldwide production chains of imported products. CO2-emissions "embodied" in products exported out of the EU go on the account of consumers abroad. The full article is available as a Statistics in focus 22/2011.
Further Eurostat information
Publications
- CO2 emissions induced by EU's final use of products are estimated to be 9 tonnes per capita - Statistics in focus 22/2011
- Eurostat Manual of Supply, Use and Input-Output Tables
- Technical Documentation eeSUIOT project
- Sigma - The Bulletin of European Statistics, 03/2008: The economy by numbers - Focus on national accounts
Database
ESA 95 Supply Use and input-output tables, see:
Supply, use and Input-output tables (naio)
Supply, use and Input-output tables - EU aggregates (naio_agg)
Supply, use and Input-output tables (product*product) - national data (naio_ckp)
Environmental accounts, see:
Environmental accounts (env_acc)
Physical flow and hybrid accounts (env_acp)
Air Emissions Accounts by activity (NACE industries and households) (env_ac_ainacehh)