1. Taiwan KLEMS Database- Progress report Yih-ming Lin Department of Applied Economics National Chiayi University 1

2. Taiwan KLEMS Research Team  Fu, Tsu-tan, Professor of Economics Soochow University  Lin, Hsing-chun, Professor of Applied Economics, National Chiayi University  Lin, Yih-ming, Associate Professor of Applied Economics, National Chiayi University  Kong, Wei-sing, Taiwan Research Institute 2

3. Taiwan KLEMS Database  Based on DGBAS data  Directorate General of Budget, Accounting and Statistics, Taiwan  http://www.dgbas.gov.tw http://www.dgbas.gov.tw  Time period: 1981-2012  93SNA  31 sectors 3

4. Gross Output  GO, II, VA  GO=II+VA  Using National Income Survey data  Based on DGBAS data  65 sectors  31 sectors  93SNA 4

5.  1. Agriculture, hunting and forestry  AA. Agriculture, Horticulture and Agrarian Services  AB. Animal Husbandry  AC. Forestry  AD. Fishing  2. Mining and quarrying B. Mining and Quarrying  3. Food products, beverages and tobacco  CA. Food Manufacturing  CB. Beverages and Tobacco Manufacturing 5

6.  4. Textiles, textile products, leather and footwear CC. Textiles Mills CD. Wearing Apparel and Clothing Accessories Manufacturing CE. Leather, Fur and Related Products Manufacturing  5. Wood and products of wood and cork  CF. Wood and Bamboo Products Manufacturing  6. Pulp, paper, paper products, printing and publishing  CG. Pulp, Paper and Paper Products Manufacturing  CH. Printing and Reproductiom of Recorded Media 6

7.  7. Coke, refined petroleum products and nuclear fuel CI. Petroleum and Coal Products Manufacturing  8. Chemicals and chemical products  CJ. Chemical Material Manufacturing  CK. Chemical Products Manufacturing  CL. Medical Goods Manufacturing  9. Rubber and plastics products  CM. Rubber Products Manufacturing  CN. Plastic Products Manufacturing 7

8.  10. Other non-metallic mineral products  CO. Non-metallic Mineral Products Manufacturing  11. Basic metals and fabricated metal products  CP. Basic Metal Manufacturing  CQ. Fabricated Metal Products Manufacturing  12. Machiner, nec  CU. Machinery and Equipment Manufacturing  13. Electrical and optical equipment CS. Computers, Electronic and Optical Products Manufacturing  CT. Electrical Equipment Manufacturing CR. Electronic Parts and Components Manufacturing 8

9.  14. Transport equipment  CV. Motor Vehicles and Parts Manufacturing  CW. Other Transport Equipment Manufacturing  15. Manufacturing nec; Recycling  CX. Furniture Manufacturing CY. Other Manufacturing( Including Repair and Installation of Industrial Machinery and Equipment)  16. Electricity, gas and water supply  DA. Electricity Supply  DB. Gas Supply  EA. Water Supply  17. Construction  F. Construction 9

10.  18. Sale, maintenance and repair of motor vehicals and motorcycles; retail sale of Motor Vehicles and Motorcycles and Related Parts & Accessories Automobiles & Motorcycles & Rel. Parts & Accessories in Specialized Stores  19. Wholesale trade and commission trade, except of motor vehicals and motorcycles  GA. Wholesale Trade  20. Retail trade, except of motor vehicals and motorcycles; repair of household goods  GB. Retail Trade  21. Hotel and restaurants  IA. Accommodation Services  IB. Food and Beverage Services 10

11.  22. Transport and storage  HA. Land Transportation  HB. Water Transportation  HC. Air Transportation HD. Supporting Services to Transportation; Warehousing and Storage.  23. Post and telecommunications  HE. Postal and Courier Services  JB. Telecommunications  24. Financial intermediation  KA. Financial Intermediation  KB. Insurance Carriers  KC. Securities, Futures and Other Financing 11

12.  25. Real estate activities  LA. Real Estate, except Dwellings Services  LB. Dwellings Services  26. Renting of m&eq and other business activities  NA. Rental and Leasing  JC. IT and Other  NB. Other Support Services  M. Professional, Scientific and Technical Services 27. Public admin and defence; Compulsory social security O. Public Administration and Defence  28. Education  P. Education 12

13.  29. Health and social work  QA. Human Health Services QB. Social Work Services( Including Residential Care Services)  30. Other community, social and personal services  SA. Non-profit Institutions Serving Households  R. Arts, Entertainment and Recreation JA. Broadcasting( Including Publishing and Audiovisual Services)  SC. Other Services Not Elsewhere Classified  EB. Pollution protection  31. Private households with employed persons  SB. Domestic Services 13

14. Industrial Structure by aggregated sector and by industry(using Value Added weights) 14

15. Table1: The industry Value Added weights by sector unit:% Sector1981-19901991-20002001-20101981-2010 Primary6.133.101.733.66 Secondary44.7534.7030.9936.82 Manufacturing 35.55 27.03 26.29 29.62 Tertiary49.1162.1967.2759.53 Primary and Secondary sectors decreased over time. Tertiary sector increased up to 67%. Secondary to 31%.

16. Figure 1: Industrial structure of Taiwan: 1981-2010 1987 is the year of industrial structure turning in Taiwan.

17. Table 2-1: Industry Value Added Weights by selected year (Primary & Secondary) unit:% Sector Industry number1981199020002010 Secondary 1.Agriculture, hunting and forestry7.654.242.081.69 2.Mining and quarrying2.160.680.520.48 3.Food products, beverages and tobacco4.483.331.471.24 4.Textiles, textile products, leather and footwear6.964.471.880.82 5.Wood and products of wood and cork0.650.410.080.07 6.Pulp, paper, paper products, printing and publishing1.571.290.730.63 7.Coke, refined petroleum products and nuclear fuel1.301.141.381.09 8.Chemicals and chemical products2.502.822.253.23 9.Rubber and plastics products1.422.101.260.70 10.Other non-metallic mineral products1.691.430.700.47 11.Basic metals and fabricated metal products2.943.993.553.30 12.Machinery, nec0.981.281.181.27 13.Electrical and optical equipment4.315.468.3712.08 14.Transport equipment2.392.421.561.26 15.Manufacturing nec; Recycling2.802.011.040.65 16.Electricity, gas and water supply3.402.812.061.35 17.Construction5.694.613.222.90 Most manufacturing industries decreased over time. Industry #8, 11, 13, 17 remain important.

18. Table 2-2: Industry Value Added Weights by selected year (Tertiary) unit:% Sector Industry number1981199020002010 Tertiary 18.Sale, maintenance and repair of motor vehicles1.161.441.331.23 19.Wholesale trade and commission trade6.176.239.4110.94 20.Retail trade, except of motor vehicles and motorcycles5.785.766.976.67 21.Hotel and restaurants0.901.672.092.05 22.Transport and storage4.274.403.933.02 23.Post and telecommunications1.621.722.501.95 24.Financial intermediation4.227.778.586.51 25.Real estate activities5.096.428.888.86 26.Renting of m&eq and other business activities1.702.023.394.88 27.Public admin and defence; Compulsory social security9.019.298.167.48 28.Education2.743.064.224.74 29.Health and social work0.751.602.633.09 30.Other community, social and personal services3.223.513.874.55 31.Private households with employed persons0.470.610.710.80 Most service industries increased over time. Industry #19, 20, 24, 25, 27 are more important.

19. Table 3: Growth rates of Output (VA, GO) by sector in 1982-2010 19 PeriodPrimarySecondaryTertiaryManufacturing The Whole Economy GOVAGOVAGOVAGOVAGOVA 1982- 2010 0.80.435.565.276.266.255.95.92 5.675.66 1982-19903.961.817.225.499.518.897.496.017.917.23 1991-2000-0.25-0.285.824.496.927.236.064.986.096.12 2001-2010-0.99-0.093.825.832.672.884.36.783.253.79 The growth rate of the Whole Economy was 5.7% in 1982-2010. Most growth rates decreased over time. Tertiary growth > Secondary (1980s and 1990s).

20. Figure 2a: Output (VA) Growth by Sector (1981-2010) Tertiary > Secondary (in 1980s and 1990s), Secondary > Tertiary (in 2000s).

21. Figure 2b: Output (GO) growth by sector (1981-2010) Tertiary > Secondary (in 1980s and 1990s), Secondary > Tertiary (in 2000s).

22. Table 3-1: Growth of Industry Value Added by Period (Primary & Secondary) unit:% Sector Industry number 1981-19901991-20002001-20101981-2010 Secondary 1.Agriculture, hunting and forestry 3.361.350.851.80 2.Mining and quarrying -2.975.832.201.85 3.Food products, beverages and tobacco 6.620.261.242.57 4.Textiles, textile products, leather and footwear 5.02-0.23-5.37-0.37 5.Wood and products of wood and cork 4.76-7.361.29-0.62 6.Pulp, paper, paper products, printing and publishing 7.772.721.543.88 7.Coke, refined petroleum products and nuclear fuel 8.5210.340.566.40 8.Chemicals and chemical products 11.266.186.577.89 9.Rubber and plastics products 14.263.33-2.894.58 10.Other non-metallic mineral products 8.101.23-1.012.59 11.Basic metals and fabricated metal products 13.317.272.227.40 12.Machinery, nec 12.897.603.697.89 13.Electrical and optical equipment 12.5412.736.6210.56 14.Transport equipment 10.044.050.844.80 15.Manufacturing nec; Recycling 6.241.80-1.651.99 16.Electricity, gas and water supply 7.825.34-1.263.83 17.Construction 7.584.871.894.68 Most manufacturing industries decreased over time. Industry #8, 11, 13 remain important.

23. Table 3-2: Growth of Industry Value Added by Period (Primary & Secondary) unit:% Sector Industry number 1981-19901991-20002001-20101981-2010 Tertiary 18.Sale, maintenance and repair of motor vehicles 12.407.642.137.21 19.Wholesale trade and commission trade 10.0312.574.468.98 20.Retail trade, except of motor vehicles and motorcycles 9.8910.342.527.50 21.Hotel and restaurants 16.7710.642.769.83 22.Transport and storage 10.247.310.335.81 23.Post and telecommunications 10.6212.160.467.65 24.Financial intermediation 16.709.440.198.50 25.Real estate activities 12.5011.692.938.92 26.Renting of m&eq and other business activities 11.8513.616.6010.65 27.Public admin and defence; Compulsory social security 10.267.152.076.36 28.Education 11.1511.664.118.90 29.Health and social work 18.3513.414.5511.89 30.Other community, social and personal services 10.879.434.578.20 31.Private households with employed persons 12.819.974.168.85

24. Growth of Industry Output 1982-2010 24

25. Energy, Materials and Services  Data from Intermediate Input (II) of national income  Using Input-output table to get the input of E, M, S for each sector  Divide Intermediate Input (II) into three sectors, E, M, S  Using the price index of Intermediate input (II_P) as the price index of E, M and S. 25

26. Intermediate Input (II)  II Intermediate inputs at current purchasers' prices (in millions of NTD) II  IIE Intermediate energy inputs at current purchasers' prices (in millions of NTD) IIE  IIM Intermediate material inputs at current purchasers' prices (in millions of NTD) IIM  IIS Intermediate service inputs at current purchasers' prices (in millions of NTD) IIS  II_P Intermediate inputs, price indices, 2005 = 100 II_P 26

27. Intermediate Input (II)  II_QI Intermediate inputs, volume indices, 2005 = 100 II_QI  IIE_QI Intermediate energy inputs, 2005 = 100 IIE_QI  IIM_QI Intermediate material inputs, 2005 = 100 IIM_QI  IIS_QI Intermediate service inputs, 2005 = 100 IIS_QI 27

28. Growth of Industry Energy Input 1982-2010 28

29. Growth of Industry Material Input 1982-2010 29

30. Growth of Industry Service Input 1982-2010. 30

31.  GOS Gross operating surplus (in millions of NTD) GOS  TXSP Taxes minus subsides on production (in millions of NTD) TXSP  The data are derived from I-O tables and by extrapolation method.  COMP=VA-TXSP-GOS  LAB=COMP*H_EMPE/H_EMP  CAP=VA-LAB 31

32. Our problem?  LP_I=VA_QI/H_EMPE?  II_QI=II/II_P, or divisia index aggregated? 32

33. Labour Input  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 33

34. Labour Input  The source of average wages –The Manpower Utilization 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) 34

35. Labour Input  EMP Number of persons engaged (thousands)EMP  EMPE Number of employees (thousands)EMPE  H_EMP Total hours worked by persons engaged (millions)H_EMP  H_EMPE Total hours worked by employees (millions)H_EMPE 35

36.  LABHS -High-skilled labor compensation (share in total labor compensation)  LABMS- Medium-skilled labor compensation (share in total labor compensation)  LABLS -Low-skilled labor compensation (share in total labor compensation) 36

37.  H_HS Hours worked by high-skilled persons engaged (share in total hours)  H_MS Hours worked by medium-skilled persons engaged (share in total hours)  H_LS Hours worked by low-skilled persons engaged (share in total hours)  H_M Hours worked by male persons engaged (share in total hours)  H_F Hours worked by female persons engaged (share in total hours)  H_29 Hours worked by persons engaged aged 15-29 (share in total hours)  H_49 Hours worked by persons engaged aged 30-49 (share in total hours)  H_50+ Hours worked by persons engaged aged 50 and over (share in total hours) 37

38. Figure 3b: Growth of Industry Labor Input (HEMP, working hour)1982-2010 There are about 10 industries among primary and secondary industries which labor input growth rate are negative or close to 0.

39. Our problem?  LAB_QI? Using divisia index aggregated? How? By skill or by age or by gender?  If there are 0 in some labor type, how to deal with it?  LAB_QPH Labor services per hour worked, 2005 reference? 39

40. Capital Stock  Capital stock- Benchmark extrapolation method  Benchmark year-those when each Industrial and Commercial Census took place and national wealth census (only once)  16 (11) sectors  31 sectors  Base year: 2005  Capital stock  capital service? How? 40

41. Growth of Industry Capital Stock Input 1982-2010 The growth rate of Capital input is relative higher than labor input.

42. Our problem?  Capital service ?  CAPIT ICT capital compensation (share in total capital compensation)* CAPIT  CAPNIT Non-ICT capital compensation (share in total capital compensation)* CAPNIT  CAP_GFCF Capital compensation (in millions of Euros) adjusted for negative rental pricesCAP_GFCF  CAPIT_QI ICT capital services, volume indices, 1995 = 100 CAPIT_QI 42

43.  CAPNIT_QI Non-ICT capital services, volume indices, 1995 = 100 CAPNIT_QI  CAPIT_QPH ICT capital services per hour worked, 1995 referenceCAPIT_QPH  CAPNIT_QPH Non-ICT capital services per hour worked, 1995 reference CAPNIT_QPH  LAB_QPH Labour services per hour worked, 1995 reference LAB_QPH 43

44.  VAConKIT Contribution of ICT capital services to value added growth (percentage points) VAConKIT  VAConKNIT Contribution of non-ICT capital services to value added growth (percentage points) VAConKNIT  VAConTFP Contribution of TFP to value added growth (percentage points) VAConTFP  TFPva_I TFP (value added based) growth, 1995 = 100 TFPva_I 44

45. Suggestion  Technical support platform 45

46.  Thank you for your attention 46