Republic of the Philippines

Philippine Statistics Authority

The Input Output (IO) Accounts

 Republic of the Philippines
Philippine Statistics Authority

Outline of Presentation
I. Overview of the 2008 System of National
Accounts (SNA)

II. Introduction to Input Output (IO) Accounts

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Philippine Statistics Authority

I. Overview

What is the System of National Accounts (SNA)?

❑A statistical framework that provides a
comprehensive, consistent and flexible set
of macroeconomic accounts for
policymaking, analysis and research
purposes

❑SNA is based on a set of internationally

agreed concepts, definitions,
classifications and accounting rules
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Philippine Statistics Authority

❑ Why do we need System of National Accounting?

❑ Framework for coordination of economic statistics

❑ Standard for definition and classification of statistics
❑ System of presentation of information
❑ Monitoring the behavior of the economy
❑ Economic analyses
❑ Comparison with other economies
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Philippine Statistics Authority

❑ The Philippine System of National Accounts (PSNA) – as framework

for coordination/cooperation within the PSA

PSA

Sectoral Statistics Civil Registration and Central Census and Technical

Office Support Coordination Office

Civil Registration Central Support

Macroeconomic Economic IT and

Social Sector National Standards/P
Sector Disseminatio
Accounts Statistics
Statistics Censuses olicies
n

Regional/
Provincial Office
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Philippine Statistics Authority

❑ The Philippine System of National Accounts (PSNA) – as

framework for coordination/cooperation among agencies

Policy
Makers/Planners/Other
users

National
Accounts

Data support Data support from

within PSA other sources
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Framework of the SNA

OPENING STOCK OF RESOURCES
Human Produced Natural Financial

PRODUCTION

Income Goods & Services Residuals

DISTRIBUTION & USE

Intermediate Final
Accumulation Exports
consumption Consumption

Other changes CHANGE: CHANGE:

(volume, price) + human produced, natural, financial

CLOSING STOCK OF RESOURCES

Human Produced Natural Financial
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Resources of the Country

Human
resources Natural
resources

Financial Produced
resources resources
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• Provide means and

• Source of labor
Human

Natural
material inputs for
production
• Capable of managing
other resources • Absorb waste and
residuals
• Can reproduce itself
• Reproduce itself, mostly
• Consumes/Uses
resources • Provide environment for
living and consumption
• Object of development service
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• Currency, deposits,
• Result of production

Financial
Produced

bonds, equities, etc.

process
• Created to facilitate
• Used as means or economic transaction
material input to
production • Used as medium of
transaction
• Help Economic Growth
and its Acceleration • Provide means for flows
and use of resources
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Philippine Statistics Authority

Macroeconomic Aggregates

SNA describes the essential phenomena of

the economy

Wealth Production Distribution Consumption Accumulation

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Philippine Statistics Authority

Macroeconomic Aggregates
❑Composite values which measure one
aspect of the activity of the entire
economy.
❑Indicators and key magnitudes for
purposes of macroeconomic analysis and
comparisons over time and space.

➢ GDP ➢ Production and ➢ Savings

➢ Supply and Use Expenditure ➢ Wealth
➢ Input and Output ➢ Consumption ➢ Others
➢ Investment
➢ Income and Outlay
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Philippine Statistics Authority

II. Introduction to IO
❑ Definition of Input Output Table (Model)
The Input-Output Accounts provides
disaggregative measures of the economic
structure of the country, which are not
shown in the national accounts.

It is a matrix representation of a nation’s

economy for a particular period through
inter-industry relations, showing how the
output of one industry is used by other
industries and final consumers.
Presents details on the process of production
and the use of goods and services, as well as
the income generated from production.
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Philippine Statistics Authority

❑ Review: Supply and Use of Goods and Services

-

Supply of goods
Output Imports
and services

- +

Intermediate Final Gross capital

consumption consumption formation
Exports

= =

Value added/ = Final Gross capital + Net

+
GDP consumption formation exports
14
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Philippine Statistics Authority

❑ Definition of Input-Output Table (Model)

Wassily Wassilyevich Leontief

August 5, 1906 – February 5, 1999

▪ Leontief earned the Nobel Prize in economics in 1973 for his work
on input-output tables
▪ Leontief is primarily associated with the development of the linear
activity model of General equilibrium and the use of input-output
analysis that results from it
▪ He has also made contributions in other areas of economics, such
as international trade where he documented the Leontief paradox
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Philippine Statistics Authority

❑ Basic Structure of Input-Output Table

Intermediate
Consumption
 041
gas
IO Codes/Description

Crude oil and natural

Manufacture of
refined
107
petroleum
Republic of the Philippines

201,774
products
Manufacture of
other petroleum
108

31,222
products
Philippine Statistics Authority

Manufacture of
128

basic iron and steel

6
Generation,
collection and
175

distribution of
6,408

electricity

Wholesale and
195

retail trade
12,848

Total Intermediate
Demand
252,258
❑ Row/Horizontal – Supply of Output

Changes in Inventories
2,876

Export of Goods
13,088

Imports of Goods
227,742

Total Final Demand

(211,778)

Total Output
40,481
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Philippine Statistics Authority

❑ Column/Vertical – Inputs to production

041

IO Codes/Description
Crude oil and
natural gas

107 Manufacture of refined petroleum products 2,670

115 Manufacture of paints, varnishes and similar coatings, printing
923 ink and mastics
113 Manufacture of basic chemicals except fertilizers and nitrogen
685 compounds
116 Manufacture of other chemical products, n.e.c. 530
101 Manufacture of pulp, paper and paperboard 431
108 Manufacture of other petroleum products 360
103 Manufacture of other articles of paper and paperboard260
212 Accounting, bookeeping and auditing activities; tax consultancy
218
OTHERS 1,758
IC Total Intermediate Consumption 7,835
CE Compensation of Employees 671
DEPN Consumption of Fixed Capital (CFC) 4,668
IT-S Indirect Taxes less Subsidies 5,805
OS Operating Surplus 21,501
TPI Total Primary Inputs 32,645
TI Total Inputs 40,481
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Philippine Statistics Authority

❑ Example: Bread
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❑ Three Basic Tables in IO Analysis

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❑ [1] Transaction Table

The transactions table is the basic table of the IO system, which records
all production flows within the economy during a specific year or period.

4 Quadrants
▪Quadrant I shows the flows of goods and services, which are both produced
and consumed in the process of production and are usually referred to as inter-
industry flows or intermediate demand
▪ Quadrant II shows the various elements of final demand for the output of each
.
producing sector
▪ Quadrant III shows the primary inputs to the productive sectors
▪ Quadrant IV shows the primary inputs which go directly to the final demand
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❑ [1] Transaction Table

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❑ [2] Technical Coefficients Table

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❑ [2] Technical Coefficients Table

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❑ [3] Inverse Matrix Table

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❑ Various Kinds of IO Table

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❑ Various Kinds of IO Table

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Philippine Statistics Authority

❑ Various Kinds of IO Table

Intermediate
consumption

Intermediate
consumption
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Philippine Statistics Authority

Thank You!

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