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The role of supply and use/input output tables in the perspective analysis of economic development of Rwanda with example

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par Jean Baptiste HABYARIMANA
National University of Rwanda - Bachelors degree in Applied Statistics  2010
  

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Chapter IV: DATA PRESANTION, ANALYSIS, AND INTERPRETATION

4.1. The role of information from SU/ I-O Tables in Economic Development

Supply and Use Framework is the part of National Accounts System which focuses on the production in an economy. It reflects the production of Industries in which Intermediate products and primary inputs (labor, capital, and land) are required. Supply and Use tables show where goods and services are produced and where they are used as intermediate consumptions, final consumption, gross capital formation and export. Supply and Use Framework provides the most important macroeconomic aggregates such as GDP, Value Added, Consumption, Investment, Import and export. Supply and Use System is also an adequate accounting framework for compiling consistent and reliable national accounts data. Consequently, it is recommended that the compilation of national accounts data both in current prices as well as in constant prices should be based on a Supply and Use Framework (Eurostat, 2008: 17-23).

Table 4.1. A Simplified Supply and Use Framework

 

Products

Industries

Final Uses

Total

Agricult.Products

Industrial Products

Services

Agri-culture

Industry

Service Activities

Final Con- sumption

Gross Capital Formation

Exports

Products

Agricult. products

 

Intermediate Consumption by Product and by Industry

Final Uses by Product and By Category

Total Use

Industrial products

services

Industries

Agriculture

Output Of Industries by Product

 

 

Tot. Output

Industry

Service Activities

Value Added

 

Value Added

 

Tot VA

Imports

Total Imports By Product

 

 

Tot M

Total

Total Supply by Product

Total Output by Industry

Total Final Uses by Category

 

Not Applicable

 Source: Eurostat, 2008, Eurostat Manual of Supply, Use and Input-Output Tables, Methodological and Working Paper: 4-23

Supply and Use Framework can be an important tool for Rwanda as a Developing country which want to redress its Economy towards Development, because it offer main information for economic planning as they are stated in the above table.

Supply and use tables serve not only statistical but also analytical purposes, especially when Supply and Use table are transformed into Symmetric Input-Output Tables. Compiling input-output tables is an analytical step. The format of symmetric input-output tables can either be made on the basis of an industry by industry or product by product classification, but the following tables describes Product by Product Symmetric input-output table:

Table 4.2. A Simplified Symmetric Input-Output Table (Product by Product)

Products

Products

Final Uses

Total

Agricult. Products

Industrial Products

Services

Final Con- sumption

Gross Capital Formation

Exports

Agricult. products

Intermediate Consumption by Product and by Industry

Final Uses by Product and By Category

Total Use

Industrial products

services

Value Added

Value Added by Component

 

 

Import

Total Imports by Product

 

Supply

Total Supply

Total final use By Category

 Source: Eurostat, 2008, Eurostat Manual of Supply, Use and Input-Output Tables, Methodological and Working Paper: 4-23.

Input-Output analysis can be used to evaluate the impact of different policies on macroeconomic variables such as gross domestic product, employment, consumption, productivity, competitiveness, Unemployment, Inflation, etc, as well as on the environment.

Moreover, input-output techniques allow quantitative impact assessment of policy actions either for regional, national or international levels. With that purpose, the National Institute of Statistics of Rwanda should develop input-output based models as a tool to support the development of Rwandan policies towards the Economic development. The latest progress on the economic recovering in Rwanda shows that Rwanda need integrated data to plan for its Economic development, and the development of Supply and Use tables/Input-Output Table can play a significant role in economic analysis and prevision, decision taking, and policy making for a sustained economic development of Rwanda.

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