Transcript Chapter 11:Updating supply and use table

Chapter 11: Updating Supply and Use Table
By: E. Monica Magaua
Ethiopia, October 2011
1
Introduction:SUT
• Measuring production in na economy is a complex but
essential task for any statistician wanting to calculate GDP.
• To capture this process where input of labour, capital, G&S
are used to produce outputs of G&S, one needs a vast
amount of information. For this reason statisticians and
economists use a statistical and analytical framework
called supply, use tables.
2
Cont: Introduction
• 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 formation of capital and exports.
• Supply and use table are a balancing framework that reconciles the three
methods of GDP estimation that are used in National accounts.
3
SUT
• 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
• There are three accounts included in the SU tables:
– Goods and services account
– Production account
– Generation of income account.
4
Goods and services account
Uses
Resources
Intermediate consumption
Final consumption
expenditure
Gross capital formation
Exports
Output
Taxes on products
Subsides on products
Imports
Total Uses
Total Resources
5
Production and Generation of income accounts
Uses
Resources
Intermediate Consumption
Output
Taxes on products
Subsidies on products
Gross domestic Product
Uses
Resources
Compensation of employees
Taxes on production and imports
Subsidies
Gross domestic
Product
Gross operating surplus / mixed income
6
Price concepts
• It is important to know the differences among the existing
prices:
Basic prices
• + Taxes on products
• -subsidies on products
=Producer´s prices
• + trade margins
• + transport margins
• +non-deductible VAT
=Purchaser´s prices
7
Updating SUT
• According to this manual, updating can be done
either manually or automatically.
• Since I don´t have any knowledge of the automatic
procedure,RAS, it is not quite easy to comment on it.
• In the meanwhile, I am absolutely sure that it takes
less time, so there is a need to understand the
procedure in order to implement.
8
Pratical: Updating SUT
• Mozambique compiles GDP yearly based on product balance, in the
meanwhile, we do not publish a SUT yearly; the last two SUT published
refered to 1996 and 1997.
• (see excel file in attachment)
• After reading the recommendations of this handbook, I found it helpful, so
I guess we can start to publish SUT more frequently :
• 1) The handbook says that trade margins don´t change a lot over the
years, so one can use the information on trade margins from the base year
and to use the same structure to the years with no information on it.
9
Applicability: SUT
• Without having a good knowledge of RAS procedure, I just
found aplicable the use of manual updating, although it will
take much time due to existence of different industry
worksheets.
• At same time, I think it can only be applicable if the data
sources are of the desirable quality. For Mozambican case, the
data of Annual Enterprise Surveys is weak due to the response
rate which is very low. Because of it, is not quite easy to
obtain accurate figures of employment by industries and
consequentely wages and salaries, and operating surplus.
10
Applicability: SUT
• Without good data sources, probably we will use the
guidelines of this handbook, which are very useful, to
the benchmark (and reference ) years, because, for
these years it is common to have a huge variety of
data coming from surveys like Household Budget
Survey, Agricultural Census, Labor Force survey, etc.,
including special studies like for example the ones
related to trade and transportation margins among
others.
11
End
12