PART D

SUPPLY-USE TABLE AND ASYMETRIC INPUT-OUTPUT TABLES

D.1. Concept and Definition
Supply and Use tables and Input-Output (IO) tables are an integral part of national account system. They
present in detail the production process (cost structure, generation of income and employment), goods and
services flows (production, import, export, final consumption, intermediate consumption and gross
investments) in the system of national accounts. The SU-tables are an extremely useful device to arrange
basic statistics for the compilation of value added by industry and final demand by products. The SU-tables
are also important in analyzing and evaluating the performance of an economy over time.

D.2. Supply tables

The supply table shows the total supply of goods and services in the economy, from the domestic production
and imports. Valuation of goods and services can be done at basic or purchaser prices

At basic prices, implying that prices excludes profit/trade margins, but includes subsides. The valuation of
imports is at c.i.f prices. Both production and imports costs, give the total resources at basic prices.
Purchasers’ prices, obtained by adding distribution margins trade/profit margins and taxes minus subsidies.

The 1993 SNA prescribes three ways in which goods and services may be measured/valued namely at basic
prices, producer’s prices or purchaser’s prices:

Basic prices
plus taxes on products (excluding VAT)
less subsidies on products
= Producers’ prices
plus trade margins
plus transport margins
plus non-deductible VAT
= Purchasers’ prices

D.3. User tables

The Use table shows the goods and services available for use in the economy. These include the
goods/services for intermediate consumption, final consumption, gross capital formation, exports and the
value added (compensation of employees, other taxes less subsidies on production, net operating surplus
and consumption of fixed capital-depreciation).

The use of goods and services for intermediate and final consumption is valued at purchasers’ prices, which
means the prices paid by the buyer.

D.4. Input-Output table

The Input-output table presents the flow of goods and services among all sectors in economy. The IO is
analytically derived from supply and use tables.

Two types of the symmetric input-output table can be constructed, that is, a product-by-product version and
industry-by-industry version. In the input-output analysis, the product-by-product version of the table has a

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more important role than the industry-by-industry version, because it shows flows and transactions in a
more homogenous way – easily differentiates the primary production from the secondary one.

The IO table are derived from supply and use tables, and constructed on the basis of statistical data from
different sources. The most common sources of data are regular statistical surveys from Bureau of Statistics
and administrative data sources.
a) Statistical surveys data include:
 agriculture, forestry and fishing,
 manufacturing,
 construction,
 trade, hotels and restaurants,
 price statistics,
 the labour force survey,
 investments statistics,
 the household budget survey and
 International trade data.

b) Administrative data sources include:

 Register of Annual Financial Reports of Enterprises kept by the Financial Agency (enterprises, banks
and savings banks, insurance companies and other financial institutions),
 Annual Report for Budgetary Users,
 statistical report for non-profit institutions kept by the Ministry of Finance,
 annual data of the Tax Administration for non-incorporated units and self-employed persons,
 financial statistics and the balance of payments data of the National Bank as well as fiscal statistics of
the Ministry of Finance.

Note: Supply and use tables of most countries worldwide were calculated according to the methodology of
the UN System of National Accounts (SNA, 1993).

D.5. Classification
The SNA 1993 edition of the Standard Industrial Classification of all Economic activities (SIC) classifies the
industries. The SIC is based on the 1990 International SIC (third revision), with suitable adaptations for
country conditions. A commodity classification was developed for use in the SU-tables which is closely
related to the SIC classification).

List of the major divisions of the SIC:

1. Agriculture, hunting, forestry and fishing.
2. Mining and quarrying.
3. Manufacturing.
4. Electricity, gas and water supply.
5. Construction.
6. Wholesale and retail trade; repair of motor vehicles, motor cycles and personal and household
goods; hotels and restaurants.
7. Transport, storage and communication.
8. Financial intermediation, insurance, real estate and business services.
9. Community, social and personal services; other activities not adequately defined

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D.6. Definitions and explanations

Gross output value (GO) is defined as a market value of all produced goods and services produced by the
sector. GO includes intermediate use and final use.

Imports of goods and services consist of transactions in goods and services (purchases, barter, gifts or
grants) to residents by non-residents. Import of goods is valued in C.I.F parity. The CIF value is a price of a
good delivered at the frontier of the importing country before the payment of any import duties or other
taxes on imports or trade and transport margins in the country. It includes transport and insurance services
provided by both resident and non-resident producers engaged in the imports.

Basic price is the price receivable by the producers from the buyer for a unit of a good or service produced
(=output minus any tax payable on that unit as a consequence of its production or sale (that is, taxes on
products), plus any subsidy receivable.

Purchasers’ price is the price the buyer actually pays for the products, including any taxes less subsidies on
the products (but excluding deductible taxes like VAT on the products).

Taxes on products are all taxes and import duties, VAT, excises and similar taxes.

Subsidies on products are unrequited payments (in cash and kind) to market producers made by general
government institutions (e.g. NAADs, UEPB, UIA, etc.).

Trade/profit margin is the difference between the sales value and purchase value of merchandise sold.

Intermediate consumption at purchase prices is the value of goods and services that are transformed, used
up or consumed in the production process.

Value added, as the output value increase, equals the difference between the gross output value and
intermediate consumption. (= sum of compensation of employees, other taxes on production less other
subsidies on production, the sum of gross operating surplus and the gross mixed income).

Gross capital formation is composed of gross fixed capital formation and changes in stocks. The gross fixed
capital formation consists of investments into new fixed capital formation, costs of transactions of existing
fixed assets and of additions to the value of non-produced assets. The changes in stocks are calculated for
work-in-progress and finished goods, stocks of commercial goods in stores, stocks of raw material and
consumables, spare parts, etc.

Compensation of employees includes all income in cash or kind that employees received as compensation for
their work and all employers' social contributions.

D.7. Structure of Supply and Use table

D.7.1. Supply table

The supply table shows the origin of the resources of goods and services at basic prices. Usually an additional
row and column is added for the cost of insurance and freight (c.i.f.) and free on board (f.o.b.) adjustment on
imports. The adjustment is necessitated by the 1993/2008 SNA recommendation to value imported
commodities at c.i.f. prices, but total imports at f.o.b. prices.
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The primary group includes agriculture, forestry, fishing and mining. The secondary group includes
manufacturing, electricity, gas, water and construction. The tertiary group includes trade; catering and
accommodation; transport and communication; financial and business services; community, social and
personal services; and general government services.

Below is an hypothetical example of the supply table for country ‘X’.

Interpretation of some features of the Supply table

 Total supply ($1,707.440 million) can be derived by adding domestic production at basic prices
($1,451.153 million), taxes less subsidies on products ($72.255 million) and imports ($184.032
million).
 Domestic production at basic prices ($1,451.153 million) is a combination of intermediate
consumption of goods and services by all industries ($720.566 million) and gross value added, i.e.
compensation of employees, gross operating surplus/mixed income and other taxes less subsidies on
production ($730.587 million).
 The total use ($1,707.440 million) consists of final demand ($986.874 million) and intermediate
demand ($720.566 million).
 That e.g. One finds that the secondary industry produced $28.265 million of tertiary products, and
that $134.140 million of secondary products were imported.

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 Table 1 - Supply of products at basic prices ($ million)
Total Taxes Trade Total Output of industries
SUPPLY supply at less and supply at Primary Secondary Tertiary Total c.i.f. / f.o.b.
TABLE purchasers' subsidies transport basic industry industry industry industry Imports adjustment
prices on products margins prices on imports

Primary products 157.033 0.841 7.650 148.542 132.516 0.116 - 132.632 15.910 -
Products

Secondary products 856.469 56.836 129.599 670.034 3.641 532.253 - 535.894 134.140 -
Tertiary products 679.412 14.578 (137.249) 802.083 0.246 28.265 754.116 782.627 31.288 (11.832)
c.i.f. / f.o.b. adjustment - - - - - - - - (11.832) 11.832
Purchases by residents 14.526 - - 14.526 - - - - 14.526 -

Total output 1,707.440 72.255 - 1,635.185 136.403 560.634 754.116 1,451.153 184.032 -

Table 2 - Use of products at purchasers’ prices ($ million)

Total Taxes Intermediate consumption Final demand
USE supply at less by industries Total Total House- Other
TABLE purchasers' subsidies Primary Secondary Tertiary industry economy Exports holds final
prices on products industry industry industry demand

Primary products 157.033 2.956 67.430 1.449 71.835 73.679 15.947 (4.428)
Products

Secondary products 856.469 37.427 233.529 107.714 378.670 93.385 282.516 101.898
Tertiary products 679.412 23.142 79.593 167.326 270.061 28.558 202.970 177.823
Purchases by residents 14.526 - - - - - 14.526 -
Purchases by non-residents - - - - - 10.261 (10.261) -

Total uses 1,707.440 63.525 380.552 276.489 720.566 205.883 505.698 275.293

Gross value added / GDP 72.878 180.082 477.627 730.587 802.842

Compensation of employees 31.992 96.247 268.886 397.125 397.125
Taxes less subsidies on products 72.255 - - - - 72.255
Taxes less subsidies on production 0.586 1.645 14.511 16.742 16.742
Gross operating surplus 40.300 82.190 194.230 316.720 316.720

Total output 136.403 560.634 754.116 1,451.153

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D.7.2. Use table
The use table (Table 2) shows the use of goods and services by product and by type of use, intermediate
consumption by industry, exports, households and other final demand components. Other final demand
components consist of general government, gross fixed capital formation and changes in inventories.
The rows show the various types of products that are available in the economy and the columns show
the inputs of the various industries. The products and industries in the use table are aggregated into the
same groups as in the supply table mentioned above. Two additional rows are added for the adjustment
of direct purchases by residents abroad and direct purchases by non-residents domestically. The use
table also shows gross value added, which consist of compensation of employees, net taxes on
production and gross.

A typical Use table is divided into three different sections:

a) The first section shows the goods and services used as intermediate consumption at purchasers’
prices.
b) The second section shows the components of final demand, namely, exports,
households/government consumption expenditure, fixed capital formation and changes in
inventories at purchasers’ prices.
c) The third section elaborates on the production costs of producers other than intermediate
consumption namely, compensation of employees, taxes less subsidies on production and
imports and gross operating surplus/mixed income.

D.7.3. The combined supply-use (SUT) table

The SU-tables is a powerful tool used for economic analysis. Another form of representation of SUT is
the IO table. The combined supply and use table shows all the interrelationships between the different
economic variables (Table 3). The SUT shows the supply of goods and services by product and by type of
supplier, distinguishing output by domestic industries and imports.

The rows represent the outputs and the columns represent the inputs. The total amount of the rows will
equal the total amount of the columns for each different product/industry groups. The total amounts of
the rows and columns correspond with the totals in the supply table (Table 1) and in the use table (Table
2).

One of the features can be that the primary industry used $37.427 million of secondary products as
inputs to their production process and that $73.679 million of primary products were exported.

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 Table 3 - Combined supply and use table ($ million)
Industries Products Final demand
COMBINED SUPPLY Primary Secondary Tertiary Primary Secondary Tertiary c.i.f. / f.o.b. Purchases House- Other Total
AND USE TABLE industry Industry industry products products products adjustment by Exports holds final output
on imports residents demand
Industries

Primary industry 132.516 3.641 0.246 136.403

Secondary industry 0.116 532.253 28.265 560.634
Tertiary industry - - 754.116 754.116

Primary products 2.956 67.430 1.449 73.679 15.947 (4.428) 157.033

Secondary products 37.427 233.529 107.714 93.385 282.516 101.898 856.469
Products

Tertiary products 23.142 79.593 167.326 28.558 202.970 177.823 679.412

Purchases by residents - 14.526 - 14.526

Purchases by non-residents 10.261 (10.261) - -

Compensation of employees 31.992 96.247 268.886 397.125

GVA

Taxes less subsidies on production 0.586 1.645 14.511 16.742

Gross operating surplus 40.300 82.190 194.230 316.720

Taxes less subsidies on products 0.841 56.836 14.578 72.255

Trade and transport margins 7.650 129.599 (137.249) -

Imports 15.910 134.140 31.288 (11.832) 14.526 184.032

c.i.f. / f.o.b. adjustment on imports - - (11.832) 11.832 -

Total output 136.403 560.634 754.116 157.033 856.469 679.412 - 14.526 205.883 505.698 275.293 4,145.467

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D.9. Input and Inverse coefficients using matrix algebra
The input coefficients form the basis of any input-output model. The coefficients give an indication of the
direct requirements, and exclude any spillover effects throughout the rest of the economy.

On the contrary, the inverse coefficient indicates not only the direct effects on the production process, but
also incorporates the indirect effects on the production process, resulting from a change in final demand
for a specific product.

The input coefficients are calculated by dividing all the elements in each column of the combined supply
and use table by the total output of each column. The input coefficients can be presented as follows:

Generally,

(1) aij = xij

Xj
where: i = 1, . . . ….. , n
j = 1, . . . . …, n
aij = Input coefficient ij
xij = Input ij
Xj = Total output j

Outputs
Input I II……. N
I a11 a12….. a1N
II a21 a22…... a2N
. . . .
. . . .
N aN1 aN2….. aN3

Where ∑aij ≤ 1
We shall consider the final demand (di). Therefore the value of the primary input needed in producing a
unit of the jth commodity would be 1-∑aij.

If industry I is producing the output to meet input requirements of the n-industries as well as the final
demand, the output level say X1 must satisfy the following equation:
X1 = a11X1 + a12X2+…..+a1nXn + d1  (1-a11) X1 – a12X2 - …- a1nXn =d1

For X2
X2 = a21X1 + a22X2+…..+a2nXn + d2  - a21X1 + (1-a22)X2 - …- a2nXn =d2

For Xn
Xn = an1X1 + an2X2+…..+annXn + dn  -an1X1 – an2X2 - …+(1- ann)Xn =dn

Where Xi is total output of the ith industry and di is the final demand

In matrix form, we get

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 1  a11  a12 ..  a1n   X 1   d1 
    
  a21 1  a22 ..  a2 n   X 2   d 2 
 : 
: .. :  :   : 
    
 a  an 2 .. 1  ann   X n   d n 
 n1

Therefore, the above matrix is in the form of I – A, called technology matrix, I is an identity matrix and
A is the input coefficient matrix and X is the variable vector matrix;
Thus (I-A) X = F

To obtain the optimal values of vector X, we can employ the formula

X = (I-A)-1F **

Note: A change in final demand ‘d’ causes ramification throughout the system. Equation ** can then be
written as follows:

X = (I – A)-1F ****

where: F = Change in final demand

X = Change in output / production

iii) Impact on Inputs

The impact on output for all the industries and products is of great significance for policy making and
economic analysis. If there is a change in final demand, it is important to translate this impact into changes
in inputs. To illustrate what the effect on inputs will be, the equation for receipts (v) can be written as
follows:

Let v = VX

where: v = Receipts
V = Payments per unit of total output
X = Total output

Equation above is substituted into equation, and the result is written as follows:

v = V(I – A)-1F

where: (I – A)-1 = Leontief inverse

F = Final demand

A change in final demand will have an impact on the inputs of industries and products, and can then be
written as follows:

v = V(I – A)-1F

where: F = Change in final demand

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 v = Change in receipts

Example
Suppose that there are two industries in the economy and the technology matrix for two sectors is A =
 0.17 0.30  100 
  and d =  
 0.33 0.50  150 
Therefore, total output levels for agriculture and industrial sectors can be computed as;

 X1  1  0.5 0.30  100   264 

         
 X 2  0.36  0.33 0.83  150   438 

Exercise
The industry by industry flow coefficient matrix for a 3 sector economy is shown in matrix A.
 0.16 0.40 0.20 
 
A =  0.36 0.20 0.16 
 0.24 0.15 0.04 
 

a) Compute the Leontief Inverse matrix

b) If the final demand values for a particular year are 8, 3 and 6 units, compute the gross output values
for the three sectors;

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From Table 3, the input coefficient matrix is given as
Table 4 - Input coefficients per $ of total output
Industries Products
Direct requirements per Primary Secondary Tertiary Primary Secondary Tertiary
rand of total output industry Industry industry products products products
Industries

Primary industry - - - 0.8439 0.0043 0.0004

Secondary industry - - - 0.0007 0.6215 0.0416
Tertiary industry - - - - - 1.1100

Primary products 0.0217 0.1203 0.0019 - - -

Products

Secondary products 0.2744 0.4165 0.1428 - - -

Tertiary products 0.1697 0.1420 0.2219 - - -

Compensation of employees 0.2345 0.1717 0.3566 - - -

GVA

Taxes less subsidies on production 0.0043 0.0029 0.0192 - - -

Gross operating surplus 0.2954 0.1466 0.2576 - - -

Taxes less subsidies on products - - - 0.0054 0.0664 0.0215

Trade and transport margins - - - 0.0487 0.1513 (0.2020)

Imports - - - 0.1013 0.1566 0.0461

c.i.f. / f.o.b. adjustment on imports - - - - - (0.0174)
Total output 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

D.10. Interpretations of some features

Assume that there is $1 million worth of inputs and products available in the economy. Then,
according to the input coefficients, the demand for inputs to the secondary industry for primary
products will increase by $120.300 ($1 million x 0.1203); secondary products will increase by
$416.500 while tertiary products will increase by $142.000. The increase in the secondary industry
will also have an effect of $171.700 on compensation of employees and $146.600 on gross
operating surplus.
Conversely, the secondary industry will produce $0.7 ($1 million x 0.0007) worth of primary
products, $621.500 worth of secondary products and $41.600$ million worth of tertiary.

On imports, $101.3 worth of primary products, $156.6 worth of secondary products and $46.1
worth of tertiary products will be will be imported.

The Leontief inverse (I-A)-1 has shown in Table 5 indicates the inverse coefficients of the linkage
effects and total effects for all the industries and products if final demand for a specific product or
a specific industry’s output increases with one dollar.

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Table 5 - Inverse coefficients matrix
Industries Products
Direct and indirect Primary Secondary Tertiary Primary Secondary Tertiary
requirements per rand industry industry Industry products products products
1 2 3 4 5 6
Industries

Primary industry 1.0520 0.1528 0.0231 0.8879 0.0994 0.0324

Secondary industry 0.2975 1.4425 0.1885 0.2521 0.8977 0.2693
Tertiary industry 0.3250 0.3398 1.3719 0.2745 0.2125 1.5370
Products

Primary products 0.0592 0.1775 0.0258 1.0501 0.1105 0.0360

Secondary products 0.4590 0.6913 0.2808 0.3878 1.4316 0.3406
Tertiary products 0.2928 0.3061 0.3351 0.2473 0.1915 1.3848

D.11. Interpretation of the inverse coefficient matrix

The inverse matrix describes both direct and indirect effects. The diagonal elements in the Leontief inverse
matrix is usually atleast one (>=1.0). This means that to produce one additional unit to meet final demand,
it is necessary to increase output by at least one unit.

According to the inverse coefficients, if we assume that the secondary industry increases output with $1
million then, the secondary industry (column 2) induces an increase of production of $152.800 ($1 million x
0.1528) in the primary industry, an increase of production of $1,442.5 ($1 million x 1.4425) in the
secondary industry and an increase of production of $339.800 ($1 million x 0.3398) in the tertiary industry.
The initial increase in the secondary industry of $1 million will cause a total increase in the production of
the whole economy of $1,935.100 ($152.800 + $1,442.500 + $339.800).

The above mentioned increase in the secondary industry will increase its demand for inputs from primary
products with $177.500 ($1 million x 0.1775), from secondary products with $691.300 ($1 million x 0.6913)
and from tertiary products with $306.100 ($1 million x 0.3061).

To increase the production of secondary products with $1 million, primary industry will have to increase
their output with $99,400 ($1 million x 0.0994), secondary industry will have to increase their output with
$897,700 ($1 million x 0.8977) and the tertiary industry will have to increase their output with $212,500 ($1
million x 0.2125).

a) Input coefficients vs. inverse coefficients

The comparison between the input coefficients and the inverse coefficients (say for the secondary industry)
is illustrated in Table below. The figures according to the inverse coefficients are higher than the input
coefficients. The reason, as already mentioned, is that the input coefficients only includes the direct effects,
where the inverse coefficients includes the direct as well as all the indirect effects on the production
process in the economy.

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Comparison between input and inverse coefficients: 1999
Secondary industry
Input Inverse
coefficients Coefficients
1 2
Products

Primary products 0.1203 0.1775

Secondary products 0.4165 0.6913
Tertiary products 0.1420 0.3061

The inverse coefficient matrix is thus a fundamental instrument in input-output analysis. It shows the total
impact of a change in demand in the economy and what the interrelationship is between the different
industries and products.

B. Impact Analysis based on Inverse and Input coefficient matrices

i) Change in exports
Table below illustrates what the effect on total output will be on the different industries and products, if
there is, for example, a change of 10% in exports.

Table 8 - Change in exports (% million)

10% Change %
Change in change In change
Exports Exports in Total in total
exports output output
1 2 3 4

Primary industry - - 7,563 5.54

Industries

Secondary industry - - 11,010 1.96

Tertiary industry - - 8,397 1.11

Total - - 26,969 1.86

Primary products 73,679 7,368 8,872 5.65

Products

Secondary products 93,385 9,339 17,199 2.01

Tertiary products 28,558 2,856 7,565 1.11

Total 195,622 19,562 33,636 1.99

The first column shows exports as illustrated in final demand. The second column shows the 10% change in
exports. The third column is derived in applying equation, where the inverse coefficients are multiplied with
the second column.

According to the third column, a change of ten percent in exports will result in a change of $7,563 million in
the total output of the primary industry, a change of $11,010 million in the total output of the secondary
industry and a change of $8,397 million in the total output of the tertiary industry. The total effect on all
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the industries will be $26,969 million. A change in exports of $7,368 million in primary products (second
column), will result in a change of $8,872 million in the total output of primary products (third column). A
total change in exports of $19,562 million (second column), will result in a change of $33,636 million in the
total output for all the products (third column).

According to the fourth column, a change of 10% in exports will result in a 5.54 percent change in total
output for the primary industry, a 1.86 percent change in the total output for all the industries, a 2.01
percent change in the total output of secondary products and a 1.99 percent change in the total output for
all the products.

ii) Change in households’ consumption expenditure

Table below illustrate what the effect on total output will be on the different industries and products, if
there is, for example, a change of 10% in households consumption expenditure.

Table 9 - Change in households consumption expenditure: 1999 (R million)

10% Change %
Change in households House- change in In change
consumption holds house- Total in total
expenditure holds output output
1 2 3 4

Primary industry - - 4,882 3.58

Industries

Secondary industry - - 31,229 5.57

Tertiary industry - - 37,639 4.99

Total - - 73,750 5.08

Primary products 15,947 1,595 5,529 3.52

Products

Secondary products 282,516 28,252 47,976 5.60

Tertiary products 202,970 20,297 33,910 4.99

Total 501,433 50,143 87,415 5.16

The first column shows households consumption expenditure as illustrated in final demand. The second
column shows the 10% change in households’ consumption expenditure. The third column is derived in
applying equation, where the inverse coefficients are multiplied with the second column.

Question: Interpret the results in column 2 – column 4

iii) Impact on gross value added

Table below shows the input coefficients for gross value added (GVA). The components of gross value
added are compensation of employees, net taxes less subsidies on production and gross operating surplus.

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Gross value added coefficients
Industries Products
Direct requirements per Primary Secondary Tertiary Primary Secondary Tertiary
rand of total output industry industry industry products products products

Compensation of employees 0.2345 0.1717 0.3566 - - -

GVA

Taxes less subsidies on production 0.0043 0.0029 0.0192 - - -

Gross operating surplus 0.2954 0.1466 0.2576 - - -

As already discussed, the input coefficients for gross value added will only give an indication of the direct
impact and it will exclude any spillover effects. By applying equation, this spillover effects (indirect impact)
can be incorporated with the direct impact, resulting from a change in final demand. This total impact
(direct plus indirect) is shown in the table below where the gross value added coefficients are multiplied
with the inverse coefficients.

Impact on gross value added

Industries Products
Impact on GVA Primary Secondary Tertiary Primary Secondary Tertiary
industry industry industry products products products
1 2 3 4 5 6

Compensation of employees 0.4137 0.4046 0.5269 0.3494 0.2532 0.6019

GVA

Taxes less subsidies on production 0.0116 0.0114 0.0271 0.0098 0.0072 0.0305
Gross operating surplus 0.4381 0.3441 0.3878 0.3700 0.2157 0.4449

Total impact on gross value added 0.8634 0.7601 0.9418 0.7292 0.4761 1.0773

According to table above an increase of $1.00 in the output of the secondary industry (second column),
resulting from a change in final demand, will lead to additional compensation of employees of $0.4046,
additional net taxes less subsidies on production of $0.0114 and additional gross operating surplus of
$0.3441. The total impact on gross value added for the secondary industry will be $0.7601 ($0.4046 +
$0.0114 + $0.3441).

One finds for example, that the direct impact on compensation of employees in the secondary industry will
be $0.1717, while the total impact on compensation of employees in the secondary will be $0.4046.

iv) Impact on net taxes less subsidies on products

Table below shows the input coefficients for net taxes less subsidies on products, trade and transport
margins and imports.

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Input coefficients per dollar of total output
Industries Products
Direct requirements per Primary Secondary Tertiary Primary Secondary Tertiary
rand of total output industry industry industry products products products
Taxes less subsidies on products - - - 0.0054 0.0664 0.0215
Trade and transport margins - - - 0.0487 0.1513 (0.2020)

Imports - - - 0.1013 0.1566 0.0461

c.i.f. / f.o.b. adjustment on imports - - - - - (0.0174)

The total impact (direct and indirect) of net taxes less subsidies on products is shown in Table below, where
the net taxes less subsidies on products coefficients are multiplied with the inverse coefficients.

Impact on net taxes less subsidies on products

Industries Products
Impact on net taxes less Primary Secondary Tertiary Primary Secondary Tertiary
subsidies on products industry industry industry products products products
1 2 3 4 5 6
Taxes less subsidies on products 0.0371 0.0534 0.0260 0.0367 0.0997 0.0525

According to Table above, an increase of $1.00 in the primary industry (first column), resulting from a
change in final demand, will lead to additional net taxes less subsidies on products of $0.0371 for the
primary industry. An increase of $1.00 in the demand for secondary products (fifth column), will lead to
additional net taxes less subsidies on products of $0.0997 in the economy.

v) Impact on imports
The total impact (direct and indirect) of imports is shown in Table below, where the imports coefficients are
multiplied with the inverse coefficients.

Table 14 – Impact on imports: 1999

Industries Products
Impact on Primary Secondary Tertiary Primary Secondary Tertiary
imports industry industry industry products products products
1 2 3 4 5 6
Imports 0.0914 0.1403 0.0620 0.1785 0.2442 0.1208

According to Table above, an increase of $1.00 in the output of the tertiary industry (third column),
resulting from a change in final demand, will lead to additional imports of $0.0620 for the tertiary industry.
An increase of $1.00 in the demand for primary products (forth column), will lead to additional imports of
$0.1785 in the economy.

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