1. 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

2. Double deflation
Satellite Accounts
Input – Output tables
Social Accounting Matrix

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

4. 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

5. 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

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

7. Double deflation

8. Double deflation

9. CPC_PPI_CPI data from 2000 - 2008
Double deflation No
CPC code
CPC_PPI_CPI data from
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

10. Double deflation

11. 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

12. 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

13. 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)

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

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

22. SAM
National Accounting Matrix

23. THE END