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

Double deflation Satellite Accounts Input – Output tables Social Accounting Matrix

Constant price calculations done in the past: Double deflation Constant price calculations done in the past: Volume index; Single deflation

Volume index Double deflation 2000 2001 2002 2003 2004 2005   Value added (current) 12,069 16,068 17,464 15,841 16,675 18,178 Production, '000 tonnes 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 17,105 18,424 20,218

Single deflation Double 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 17,105 18,424 20,218

Current constant price calculations: Double deflation Current constant price calculations: Double deflation.

Double deflation

Double deflation

CPC_PPI_CPI data from 2000 - 2008 Double deflation No 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 96.5 107.7 119.5 136.6 3 03 98.2 98.3 99.1 105.0 112.7 126.1 4 04 64.0 71.3 83.9 87.5 87.4 118.5 140.1 167.6 5 11 57.9 67.9 77.2 70.1 86.2 105.4 115.3 153.4 6 13 69.6 76.5 86.6 81.2 89.4 111.0 122.8 139.1 7 14 74.5 80.0 89.5 86.8 92.5 119.3 133.8 8 16 89.7 102.9 96.1 90.7 107.1 117.8 126.7 9 17 90.5 95.5 94.5 93.1 94.7 104.5 111.6 135.5 10 18 81.4 83.4 89.2 112.8 124.2 137.0 211 67.8 74.1 94.0 91.6 95.0 116.9 126.8 138.8 12 212 79.0 87.1 104.0 103.2 101.5 110.2 132.2 140.8 213 79.6 93.0 97.4 98.4 103.8 109.3 214 15 215 78.4 84.3 109.4 109.1 105.7 138.4 212.6 22 71.8 77.3 100.4 100.9 104.7 118.7 142.2

Double deflation

In South Africa we have developed 3 satellite accounts: 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

minus intermediate consumption Equals Value Added Plus net taxes 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

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)

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

Differences between SU-tables and I-O tables 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

Product by product I-O table: Input – Output tables Product by product I-O table: Products Units of productions Final uses Total uses Agricultural products Industrial products Services Final consumption Gross capital formation Exports Intermediate consumption by product and by units of production Final uses by products and by category Total use by product Value added Value added by component and by units of production Imports for similar products Total imports by products Supply Total supply by units of production Total final uses by category

Gross capital formation Input – Output tables Industry by industry I-O table: Industry Final uses Total uses Agriculture Service activities Final consumption Gross capital formation Exports Value added Imports of similar products Supply

Four mathematical models can be used: 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 Industry by industry

Compilation steps Input – Output tables 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 Application of either Model A, B, C, D to square SU-table The resultant use table needs to be balanced I-O table formed from the balance use table

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

SAM Social Accounting Matrix: NAM < USES > < RESOURCES >

SAM National Accounting Matrix

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