The application of Supply and
Use Tables
Seminar on Developing a programme for the
implementation of the
2008 SNA and supporting statistics
17-19 October 2012
Pretoria, South Africa
1
• Double deflation
• Satellite Accounts
• Input – Output tables
• Social Accounting Matrix
2
Double deflation
Constant price calculations done in the past:
• Volume
• Single
index;
deflation
3
Double deflation
Volume index
2000
2001
2002
2003
2004
2005
12,069
16,068
17,464
15,841
16,675
18,178
210,907
218,495
220,270
237,846
243,372
244,988
Volume index
95.75
99.19
100.00
107.98
110.49
111.22
Value added (constant)
11,556
15,939
17,464
17,105
18,424
20,218
Value added (current)
Production, '000 tonnes
4
Double deflation
Single deflation
2000
2001
2002
2003
2004
2005
Value added (current)
12,069
16,068
17,464
15,841
16,675
18,178
Price index
104.44
100.81
100.00
92.61
90.51
89.91
Value added (constant)
11,556
15,939
17,464
17,105
18,424
20,218
5
Double deflation
Current constant price calculations:
• Double deflation.
6
Double deflation
Supply of products at basic prices: 2000 (R million)
Supply of
products
Primary products
Secondary products
Tertiary products
c.i.f./f.o.b. adjustment
Direct purchases residents
Total output at basic prices
Total
Taxes
Trade
supply at
less
and
purchasers' subsidies Transport
prices
on products margins
193,994
964,351
752,681
15,236
1,926,262
943
62,541
16,332
8,680
147,124
(155,804)
79,816
-
Total
supply at
basic
prices
184,371
754,686
892,153
15,236
1,846,446
Output of industries
Primary Secondary
industry
industry
Tertiary
industry
151,452
4,240
289
123
589,265
31,610
839,997
155,981
620,998
839,997
Total
industry
151,575
593,505
871,896
1,616,976
Imports
32,796
161,181
36,418
(16,161)
15,236
229,470
c.i.f./f.o.b.
adjustment
on imports
(16,161)
16,161
-
Use of products at purchasers' prices: 2000 (R million)
Supply of
products
Primary products
Secondary products
Tertiary products
Direct purchases residents
Direct purchases non-residents
Total uses at purchasers' prices
Gross value added / GDP
Compensation of employees
Tax less sub on products
Other tax less sub on production
GOS / mixed income
Total output at basic prices
Total
Taxes
supply at
less
purchasers' subsidies
prices
on products
193,994
964,351
752,681
15,236
1,926,262
79,816
79,816
Intermediate consumption
by industries
Primary Secondary Tertiary
industry
industry
industry
2,748
42,772
29,450
83,701
287,638
52,961
1,557
116,016
191,892
74,970
81,011
34,621
761
45,629
155,981
424,300
196,698
100,291
2,093
94,314
620,998
309,465
530,532
290,046
17,335
223,151
839,997
Total
industry
88,006
446,426
274,303
808,735
808,241
424,958
20,189
363,094
1,616,976
Total
economy
Components of
final
demand
105,988
517,925
478,378
15,236
1,117,527
888,057
424,958
79,816
20,189
363,094
7
Double deflation
Supply of products at basic prices: 2000 (R million)
Supply of
products
Primary products
Secondary products
Tertiary products
c.i.f./f.o.b. adjustment
Direct purchases residents
Total output at basic prices
Total
Taxes
Trade
supply at
less
and
purchasers' subsidies Transport
prices
on products margins
193,994
964,351
752,681
15,236
1,926,262
943
62,541
16,332
8,680
147,124
(155,804)
79,816
-
Total
supply at
basic
prices
184,371
754,686
892,153
15,236
1,846,446
Output of industries
Primary Secondary
industry
industry
Tertiary
industry
151,452
4,240
289
123
589,265
31,610
839,997
155,981
620,998
839,997
Total
industry
151,575
593,505
871,896
1,616,976
Imports
32,796
161,181
36,418
(16,161)
15,236
229,470
c.i.f./f.o.b.
adjustment
on imports
(16,161)
16,161
-
Use of products at purchasers' prices: 2000 (R million)
Supply of
products
Primary products
Secondary products
Tertiary products
Direct purchases residents
Direct purchases non-residents
Total uses at purchasers' prices
Gross value added / GDP
Compensation of employees
Tax less sub on products
Other tax less sub on production
GOS / mixed income
Total output at basic prices
Total
Taxes
supply at
less
purchasers' subsidies
prices
on products
193,994
964,351
752,681
15,236
1,926,262
79,816
79,816
Intermediate consumption
by industries
Primary Secondary Tertiary
industry
industry
industry
2,748
42,772
29,450
83,701
287,638
52,961
1,557
116,016
191,892
74,970
81,011
34,621
761
45,629
155,981
424,300
196,698
100,291
2,093
94,314
620,998
309,465
530,532
290,046
17,335
223,151
839,997
Total
industry
88,006
446,426
274,303
808,735
808,241
424,958
20,189
363,094
1,616,976
Total
economy
Components of
final
demand
105,988
517,925
478,378
15,236
1,117,527
888,057
424,958
79,816
20,189
363,094
8
Double deflation
N
o
CPC
code
CPC_PPI_CPI data from 2000 - 2008
2000
2001
2002
2003
2004
2005
2006
2007
2008
1
01
84.0
91.4
113.6
105.1
104.4
100
119.0
144.4
148.6
2
02
75.5
81.3
92.2
94.3
96.5
100
107.7
119.5
136.6
3
03
98.2
98.2
98.2
98.3
99.1
100
105.0
112.7
126.1
4
04
64.0
71.3
83.9
87.5
87.4
100
118.5
140.1
167.6
5
11
57.9
67.9
77.2
70.1
86.2
100
105.4
115.3
153.4
6
13
69.6
76.5
86.6
81.2
89.4
100
111.0
122.8
139.1
7
14
74.5
80.0
89.5
86.8
92.5
100
119.3
133.8
140.1
8
16
87.4
89.7
102.9
96.1
90.7
100
107.1
117.8
126.7
9
17
90.5
95.5
94.5
93.1
94.7
100
104.5
111.6
135.5
10
18
64.0
71.3
81.4
83.4
89.2
100
112.8
124.2
137.0
11
211
67.8
74.1
94.0
91.6
95.0
100
116.9
126.8
138.8
12
212
79.0
87.1
104.0
103.2
101.5
100
110.2
132.2
140.8
13
213
79.6
84.0
93.0
97.4
98.4
100
103.8
109.3
115.3
14
214
79.6
84.0
93.0
97.4
98.4
100
103.8
109.3
115.3
15
215
78.4
84.3
109.4
109.1
105.7
100
107.1
138.4
212.6
16
22
71.8
77.3
94.5
100.4
100.9
100
104.7
118.7
142.2
9
Double deflation
Intermediate consumption
by industries
Primary
Primary
Primary
2004
2005
2006
Output of industries
Primary
2004
Primary products
Secondary products
Tertiary products
Primary
2006
238,247
6,004
455
259,397
6,670
515
316,161
8,375
638
244,706
266,582
Primary
2004
Primary products
Secondary products
Tertiary products
Primary
2005
93.7
97.2
91.5
Price index
Primary
2005
4,032
58,349
53,603
4,231
62,999
59,096
5,108
77,449
70,695
325,174
115,984
126,326
153,252
Primary
2006
Primary
2004
100.0
100.0
100.0
114.2
103.8
110.3
Primary products
Secondary products
Tertiary products
Primary products
Secondary products
Tertiary products
Primary products
Secondary products
Tertiary products
Primary
2005
Primary
2006
254,266
6,177
497
259,397
6,670
515
276,849
8,068
578
260,940
266,582
285,495
Value added of Primary industries at current prices
Output
244,706
266,582
325,174
Interm. consump.
115,984
126,326
153,252
Value added
128,722
140,256
171,922
% change
8.96
22.58
100.0
100.0
100.0
114.2
103.8
110.3
Intermediate consumption
by industries
Primary
Primary
Primary
2004
2005
2006
Output of industries
Primary
2004
93.7
97.2
91.5
Price index
Primary
Primary
2005
2006
Primary products
Secondary products
Tertiary products
4,303
60,030
58,583
4,231
62,999
59,096
4,473
74,614
64,093
122,915
126,326
143,180
Value added of Primary industries at constant prices
Output
260,940
266,582
285,495
Interm. consump.
122,915
126,326
143,180
Value added
138,025
140,256
142,315
% change
1.62
1.47
10
What is a Satellite Account
• Tool developed by the UN and others to measure the size of
economic sectors not defined as industries in typical National
Accounts
• In South Africa we have developed 3 satellite accounts:
– Tourism Satellite Account
– Information and Communication Technology Satellite Account
– Non Profit Institutions Satellite Account
11
Supply and Use tables and the Satellite Accounts
• The Supply and Use tables are the ‘backbone’ in the compilation of
any satellite account
• Why?
• We are measuring the contribution of an economic sector
(which is made up of various parts of various industries):
• Output
• minus intermediate consumption
• Equals Value Added
• Plus net taxes
• Equals Gross Domestic Product
• The Supply and Use tables provides the framework to reconcile
demand and supply
12
Example: Tourism Satellite Account
•Tourism is not identified as an industry in the SNA – it is a sector
•Published GDP (the contribution of tourism to the economy is a part of);
• SIC 6
• SIC 7
• SIC 8
• SIC 9
•The tourism sector consists of the following tourism specific industries:
•Hotels, camping sites and other provision (SIC 6410)
•Restaurants, bars and canteens (SIC 6420)
•Railway passenger transportation (SIC 7111)
•Road passenger transportation (SIC 7121 and SIC 7122)
•Water passenger transportation (SIC 7211 and SIC 7220)
•Air passenger transportation (SIC 7300)
•Transport equipment rental (SIC 8511, SIC 8512 and SIC 8513)
•Travel agencies and similar (SIC 7414)
•Cultural services (SIC 9632 and SIC 9633)
•Sport and recreational services (SIC 9612, SIC 9614, SIC 9619, SIC 9641 and SIC 9649)
13
Example: Tourism Satellite Account
•Visitors demand certain quantities of these industries and these industries supplies
to both visitors and non visitors
• The Supply and Use tables are the cornerstone to reconcile demand and supply
(integrated framework that incorporates ‘demand side’ and ‘supply side data’).
•From the Supply and Use table we can now calculate the following for tourism:
•Tourism direct gross value added:
The sum of the portions of value added generated by the industries (tourism
industries and other industries) as they respond to tourism consumption
•Tourism direct gross domestic product:
The sum of that part of the GVA (at basic prices) generated by all industries in
response to internal tourism consumption plus the amount of net taxes on products
and imports included within the value of this expenditure at purchasers’ prices
THIS WOULD BE AN ALLMOST IMPOSSIBLE TASK WITHOUT A DETAILED
SUPPLY AND USE TABLE
14
Input – Output tables
• Differences between SU-tables and I-O tables
• SU-tables are industry-by-product matrices using both industry
and product classifications
• SU-tables are in the form of two separate tables
• The use table, describing the use of commodities
• The supply tables, describing the supply of commodities
• I-O tables are either product-by-product or industry-by-industry
• Classifications are never mixed (product and industry)
• I-O tables have both supply and use data in a single matrix
15
Input – Output tables
• Product by product I-O table:
Units of productions
Agricultural
products
Agricultural
products
Industrial products
Industrial
products
Final uses
Services
Intermediate consumption by product and by units of
production
Final
consumption
Total
uses
Gross
capital
formation
Exports
Products
Final uses by products and by
category
Total use
by
product
Services
Value added
Imports for similar
products
Supply
Value added by component and by units of production
Total imports by products
Total supply by units of production
Total final uses by category
16
Input – Output tables
• Industry by industry I-O table:
Industry
Industry
Agriculture
Industry
Final uses
Service activities
Final consumption
Gross capital
formation
Exports
Total
uses
Agriculture
Industry
Service activities
Value added
Imports of
similar products
Supply
17
Input – Output tables
• Four mathematical models can be used:
–
–
–
–
Product technology assumption (Model A)
Industry technology assumption (Model B)
Fixed industry-output structure assumption (Model C)
Fixed product-output structure assumption (Model D)
• Product by product
– Product technology assumption (Model A)
– Industry technology assumption (Model B)
• Industry by industry
– Fixed industry-output structure assumption (Model C)
– Fixed product-output structure assumption (Model D)
18
Input – Output tables
• Compilation steps
•
Conversion of SU-tables to square SU-tables
•
Square SU-tables need to be balanced without a discrepancy
•
•
•
The square use table must be converted to basic prices
•
The resultant use table needs to be balanced
•
I-O table formed from the balance use table
Application of either Model A, B, C, D to square SU-table
19
SAM
What is a Social Accounting
Matrix
• IEA in matrix format
• Elaborate of the linkages between the supply and
use tables and institutional sectors
• More detailed classification of sectors and
transactions
20
Social Accounting Matrix: NAM
II.1.2. Allocation
of primary
income (instittutional sectors)
II.2. Secondary
distribution of
income (instittutional sectors)
II.4. Use of
income
(institutional
sectors)
Fixed
III.1. Capital capital
III.2. Financial
(institutional formation (financial
V. Rest of the world
sectors)
(industries) assets)
II. Current
III.1. Capital Total
>
I. Production
(industries)
II.1.1. Generation
of income
(value added
categories)
< RESOURCES >
USES
Goods and
Account
services
(classification) (products)
Goods and
services
(products)
Production
(industries)
Generation of
income
(value added
categories)
Allocation of
primary
income
(institutional
sectors)
Secondary
distribution of
income
(institutional
sectors)
Use of
income
(institutional
sectors)
Capital
(institutional
sectors)
Fixed capital
formation
(industries)
Financial
(financial
assets)
Rest of the
world,
current
<
SAM
Rest of the
world,
capital
Total
21
SAM
National Accounting Matrix
Integrated
Economic
0. Goods and
Account
services
(classification)
(products)
Code
1
I. Production
(industries)
2
II.1.1. Generation
II.1.2. Allocation
II.2. Secondary
II.4. Use of dispo-
of income
of primary
distribution of
sable income
(race and
income (instit-
income (instit-
(race and
occupations)
tutional sectors)
tutional sectors)
percentiles)
3
4
5
6
III.1. Capital
III.2. Financial
V. Rest of the world
(financial
intermediaries)
7
8
9
Residual
II. Current
III.1. Capital
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
22
TOTAL
THE END
23