Taiwan KLEMS Database Yih-ming Lin Department of Applied Economics National Chiayi University, Taiwan yxL173@mail.ncyu.edu.tw

Dr. Fu, Tsu-tan Research Fellow, Institute of Economics, Academia Sinica, 1992- Professor, Department of Economics, Soochow University Guest Editor, Special issue of Taiwan Economic Review, 2008. Associate Editor, Journal of Productivity Analysis, 2007- present Chief Expert, The APO 50th Anniversary Publication

Dr. Fu, Tsu-tan The founder of the Taiwan Efficiency and Productivity Association (TEPA) Coordinator of Asia-Pacific Productivity Conference, APPC (2008, 2010) Email: tfu@econ.sinica.edu.tw

Taiwan KLEMS Database From DGBAS, Taiwan Directorate General of Budget, Accounting and Statistics, Taiwan http://www.dgbas.gov.tw Time period: 1981-2001: 13 sectors (only)

2001-2010 Sixteen sectors 93SNA We can convert to 16 sectors for 1981-2000 if necessary

Sixteen sectors Five Industry sectors: Mining & quarrying (1), Manufacturing (2), Electricity & gas supply (3), Water supply and remediation service (4) Construction (5)

Eleven Services sectors Wholesales & retail trade Transportation & storage Accommodation & food services Information & communication Finance & insurance Real estate Professional, scientific and technical service Support services Human health services Art, entertainment & recreational services Other services

Methodology for compilation Y: national income production account (NIPA) Real Gross Output(real GO) K L E, M, S

Methodology for compilation Gross output = intermediate input (II) + value added (VA) Data is from national account survey Annual, qualterly 93SNA

Methodology for compilation Capital stock- Benchmark extrapolation method Benchmark year-those when each industrial and commercial census took place and national wealth census 16 industrial sectors Base year: 2006, 1988

Capital stock The real net fixed capital stock are based on the net value of fixed assets used in operation including Building and other construction Transportation equipments Machinery and other equipments Constructions in progress Net value of intangible assets Fixed assets rented and borrowed

Capital stock Net Fixed capital stock NK(t)=NK(t-1)+ I(t)- D(t) I(t) investment from national account D(t) depreciation I(t) is the problem

Capital stock Mid-year real fixed capital stock Use different benchmark years to estimate mid-year capital stock would be inconsistent Use extrapolation method to solve this problem

Labour Input Labour input-- flows Man Hours: including man hours of employees, employers, own-account workers, and unpaid family workers Data– from Manpower survey Adjusted working hours– Employees’ Earnings Survey

Labour Input The source of average wages –The Manpower survey Equi-employed person Compute fulltime worker’s average (NH) working hours from Manpower survey Compute the average working hours for Own-account worker (AH1), employers (AH2), employees (AH3), and unpaid family workers(AH4)

Labour Input Equi-employed person Ri=AHi/NH, i=1,2,3,4 The number of equi-employed person= Ri*Ei where Ei is the number of different classes of employment The total equi-employed persons for each sectors is sum of Ri*Ei

Labour Input Total Labor compensation = Average Labor compensation (wage)* total equi-employed persons

Energy, Materials and Services Data from Intermediate Input of national accunt Divide all sectors into three sectors, E, M, S Using Input-output table to get the input of E, M, S for each sector

Example Energy Material Services Net Final Total Demands Output Energy 10 6 2 18 36 Material 4 4 3 26 37 Services 6 2 1 35 44 Primary 16 25 38 79 Input (Value Added) Total Input 36 37 44 79 196

Energy input for energy sector E=IIE*SE=20*10/20=10 Material input for energy sector M=IIE*SM=20*4/20 II for each sector change I/O table , once five year

K, L, E, M, S Share K,L,E, M, S are known SL=L/Gross output SE=E/Gross output SM=M/Gross output SS=S/Gross output Capital share Sk= 1-SL-SE-SM-SS

Problem and future plan The ICT part could be a problem Convert to 16 sectors for 1981-2000

Thanks for your attention !