inter industry linkages in new zealand · inter industry linkages in new zealand2 tables are...

Inter industry l inkages in New Zealand

Ir is Claus

P A P E R P R E S E N T E D A T T H E A U S T R A L A S I A N

M A C R O E C O N O M I C S W O R K S H O P 2 0 0 2

Inter industry linkages in New Zealand

A U T H O R Iris Claus The Treasury 1 The Terrace PO Box 3724 Wellington NEW ZEALAND

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[email protected] 64-4-471 5221 64-4-499 0992

N Z T R E A S U R Y New Zealand Treasury, PO Box 3724, Wellington 6008, NEW ZEALAND

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[email protected] 64-4-472 2733 www.treasury.govt.nz

A C K N O W L E D G E M E N T S I would like to thank Maryanne Aynsley and Geoff Lewis for useful comments.

D I S C L A I M E R The views expressed in this paper are those of the author and do not necessarily reflect the views of the New Zealand Treasury. The paper is presented not as policy advice, but with a view to informand stimulate wider debate.

I N C O M P L E T E D R A F T , N O T T O B E C I T E D

I n t e r i n d u s t r y l i n k a g e s i n N e w Z e a l a n d i

Con ten ts Contents ............................................................................................................................... i

Abstract................................................................................................................................iii

1 Introduction.................................................................................................................1

2 Input output tables......................................................................................................1

3 Measures of backward and forward linkages and industry interconnectedness ........5 3.1 Measures of backward and forward linkages .................................................................5 3.2 Measures of industry interconnectedness ......................................................................7

4 Empirical results .........................................................................................................9 4.1 Some descriptive statistics .............................................................................................9 4.2 Backward and forward linkages....................................................................................12 4.3 Industry interconnectedness.........................................................................................13

5 Concluding remarks .................................................................................................15

6 References ...............................................................................................................35

L is t o f F igures Figure 1: Backward linkages (weighted by final demand) ..............................................15 Figure 2: Forward linkages (weighted by final demand).................................................17 Figure 3: Backward linkages (weighted by exports).......................................................18 Figure 4: Forward linkages (weighted by exports) .........................................................19 Figure 5: Backward coefficient of variation index (weighted by final demand)...............20 Figure 6: Forward coefficient of variation index (weighted by final demand) .................21 Figure 7: Backward coefficient of variation index (weighted by exports)........................22 Figure 8: Forward coefficient of variation index (weighted by exports) ..........................23 Figure 9: Backward concentration index for input coefficients .......................................24 Figure 10: Forward concentration index for input coefficients..........................................25 Figure 11: Backward concentration index for total requirement coefficients ....................26 Figure 12: Forward concentration index for total requirement coefficients.......................27 Figure 13: Row entropy for input coefficients ...................................................................28 Figure 14: Column entropy for input coefficients..............................................................29 Figure 15: Row entropy for final demand weighted total requirement coefficients...........30 Figure 16: Column entropy for final demand weighted total requirement coefficients......31 Figure 17: Row entropy for export weighted total requirement coefficients .....................32 Figure 18: Column entropy for export weighted total requirement coefficients ................33 Figure 19: Row entropy for sales flows ............................................................................34


I n t e r i n d u s t r y l i n k a g e s i n N e w Z e a l a n d i i

L is t o f Tables Table 1: Inter industry transactions in basic prices (dollar millions) ................................4 Table 2: Some descriptive statistics..............................................................................10 Table 3: Some descriptive statistics (cont.)...................................................................11

L is t o f Boxes Box 1: Supply and use tables and symmetric input output tables ................................2 Box 2: Link between basic and producer prices...........................................................3


I n t e r i n d u s t r y l i n k a g e s i n N e w Z e a l a n d i i i

Inter industry l inkages in New Zealand

Abs t rac t The purpose of this paper is to examine the structure of production of the New Zealand economy using input output analysis. The paper analyses the 1996 input output tables at the 126 industry level by constructing indices of backward and forward linkages and measures of industry interconnectedness. Measures of connectedness are fairly similar across industries and large, in particular for backward linkages. This suggests that New Zealand industries had strong inter industry linkages in 1996. The ranking of industries by degree of connectedness depends on whether direct transactions or both direct and indirect transactions are considered.

J E L C L A S S I F I C A T I O N C67 (input output models), L16 (macroeconomic industrial structure)

K E Y W O R D S Input output models, inter industry dependencies


I n t e r i n d u s t r y l i n k a g e s i n N e w Z e a l a n d 1

1 In t roduc t ion Input output analysis refers to an analytical framework developed by Wassily Leontief in the late 1930s, for which he received the Nobel Prize in Economic Science in 1973. Input output tables, which are at the core of input output analysis, are a summary of the process of production, the use of goods and services (products) and the income generated in that production (United Nations, 1993). Input output tables serve two purposes. 1) As a statistical tool, they provide a framework for checking the consistency of statistics on flows of goods and services obtained from different statistical sources.

1 2) The input output

framework can be used as an analytical tool, to assess the interdependence of industries in an economy, for example. It has also been used in regional economics, environmental economics, trade and transport economics, the study of technological change and employment, growth and development economics.

Inter industry studies are usually conducted five yearly by Statistics New Zealand. The last study is the interim release of the inter industry study 1996 tables at the 49 and 126 industry levels (National Accounts Division Statistics New Zealand, 2001). The release is “interim” as the explanatory text of the study is not yet complete, but the data are final.

The purpose of this paper is twofold: (i) to gain a better understanding of input output tables, and (ii) to examine the structure of production of the New Zealand economy using the 1996 data. The analysis in this paper is undertaken at the most disaggregated level data are available, the 126 industry level. This study is the first in a series of papers. Future studies will examine structural change in the New Zealand economy over time and compare the structure of production across OECD countries. The remainder of this paper proceeds as follows. Section 2 describes input output tables and section 3 the methodology. The results are discussed in section 4 and section 5 summarises and concludes.

2 Inpu t ou tpu t tab les 2 With the release of the 1996 input output tables, Statistics New Zealand has completed the ninth inter industry study for New Zealand. Tables are also available for 1952-53, 1954-55, 1959-60, 1965-66, 1971-72, 1976-77, 1981-82 and 1986-87.

3 The input output tables for the

four years 1971-72, 1976-77, 1981-82 and 1986-87 are based on the 1968 System of National Accounts (SNA68). The 1996 tables are based on SNA93 and Australian and New Zealand Standard Industrial Classification (ANZIC) to define industries and Australian and New Zealand Standard Commodity Classification (ANZSCC) for commodity definitions.

4

Input output tables provide information on the flows of goods and services between industries and sectors of an economy. There are two types of input output tables (matrices): supply and use tables and symmetric input output (or Leontief) tables. Supply and use

1 In New Zealand, these include the national accounts, business surveys, external trade statistics,

income tax statistics, the household economic survey, the crown accounts and local authority surveys (see Statistics New Zealand, 2001).

2 United Nations (1993) provides a useful reference. 3 No official tables were produced for the early 1990s. 4 The 1996 tables are hence not directly comparable to earlier data.



tables are product by industry tables. However, the focus of input output analysis tends to be on the inter industry transactions table or (symmetric) industry by industry flow matrices. Examples of the types of information contained in input output tables are given in Box 1. They are taken from the interim release of the 1996 tables (National Accounts Division Statistics New Zealand, 2001).

Box 1: Supply and use tables and symmetric input output tables

Supply tables show the supply of products by industries. The bars, clubs, cafes and restaurants industry produces $995m meal services and $554m beverage services. New Zealand industries produce $730m of domestic appliances, while $247m of this commodity is imported.

Use tables show the use of products by industry and final demand categories. The bakery, sugar and confectionery manufacturing industry consumed $170m of grain products and $283m of sugar. The ship and boat building industry paid $106m in salaries, wages and allowances to its employees, either in cash or in kind. Symmetric input output tables show how much each industry buys from and sells to every other industry. The non-building construction industry buys $45m worth of products from other mining and quarrying and $122m worth of imported goods and services. Central government administration purchased $62m of goods and services from the legal services industry. Households purchased $476m of goods and services from the lotteries, casinos and other gambling industry. The seafood processing industry exports $1,066m of its output.

All commodity and industry flows in the input output tables are in dollar millions and recorded at basic prices. “At basic prices” means that transactions are valued at the prices received by the producers rather than those paid by the buyers. Producer prices, i.e. prices paid by buyers, include taxes and trade and transport margins. The link between basic and producer prices is given in Box 2.

Table 1 shows (parts of) the 1996 industry by industry transactions matrix.5 The rows of the

table describe the distribution of an industry’s output throughout the economy (forward linkages). The columns describe the composition of inputs required by a particular industry to produce its output (backward linkages). These inter industry transactions of products constitute the shaded portion of Table 1.

The column labelled “total industry” shows the total of intermediate products supplied by a particular industry. The additional columns record the sales by each sector for final demand, i.e. final consumption expenditure (by households, private non-profit institutions serving households, central and local government), gross capital formation and exports, where gross capital formation consists of gross fixed capital formation and change in inventories. The

5 For more details and an excellent introduction to inter industry transactions and input output analysis

see Dixon (1996).



column labelled “total economy” is the sum of sales of intermediate and final demand products. It is equal to the row labelled “total supply in basic prices”.

Box 2: Link between basic and producer prices

Products flows Basic price of a product Plus: Taxes on the product Plus: Trade and transport margin in delivering the product to the purchaser Equals: Producer price of the product Inter industry transactions Products purchased by each industry at producer prices Less: Taxes on the products Equals: Value of the products at basic prices

The row labelled “total use in purchasers’ prices” is the sum of inputs purchased from domestic producers and imports required by a particular industry to produce its output. The other rows account for other inputs to production, such as labour. Compensation of employees, operating surplus, consumption of fixed capital, other taxes on production and subsidies add up to total value added. Table 1 also shows the link between total use in basic prices and purchasers’ prices.

The inter industry transactions table can be used to construct input output coefficients. The matrix of technical or input coefficients reports the inputs directly required from one industry in order to produce one dollar’s worth of output of another industry. The matrix of total requirements coefficients shows how much extra output is needed by every industry if a particular industry is to produce one more dollar worth of final output.

Total requirements coefficients are useful for evaluating the effects of a change in the circumstances of one industry upon all other industries as long as the coefficients are constant or only changing slowly. The coefficients will be constant or only changing slowly if:

both relative prices and quantities are constant;

industry composition is constant;

technical coefficients (i.e. quantities of inputs per unit of output) are constant; this implies that inputs cannot be substituted for each other.



Table 1: Inter industry transactions in basic prices (dollar millions)

Other horticulture

Apple and pear

growingKiwifruit growing …

Personal and other

community services

Waste disposal,

sewerage and

drainage services

Total Industry

Final consumption expenditure

Gross capital

formation ExportsTotal

economyOther horticulture 7 3 2 … 427 125 9 188 749Apple and pear growing … 40 23 5 207 276Kiwifruit growing 2 1 1 … 38 3 2 228 270… … … … … … … … … … … …Personal and other community services … 17 503 1,052 10 84 1,648Waste disposal, sewerage and drainage services … 21 65 258 6 3 3 271Imports 40 15 13 … 103 7 15,468 6,051 4,620 503 26,641Total use in basic prices 385 146 139 … 753 135 101,054 65,801 20,304 27,002 214,161Taxes on products 8 3 3 … 15 4 2,346 6,164 768 348 9,626Total use in purchasers' prices 394 149 142 … 768 139 103,400 71,965 21,073 27,350 223,788Total value added 355 127 128 … 880 132 84,120Compensation of employees 151 110 30 … 604 46 39,450Operating surplus 125 -11 68 … 185 65 29,621Consumption of fixed capital 67 25 24 … 76 17 12,407Other taxes on production 15 5 6 … 17 4 2,957Subsidies -3 -2 -1 … -1 -315Total supply in basic prices 749 276 270 … 1,648 271 187,520

Gross national product


3 Measures o f backward and fo rward l i nkages and indus t ry i n te rconnec tedness

The methodology in this paper follows Soofi (1992), who adopts a technological definition of structure of production to compare three African countries, Egypt, Morocco and Zambia. This definition refers to “the input coefficients of an input output model derived from Leontief-type fixed-proportion production functions” (Soofi, 1992). Soofi uses two types of measures: (i) backward and forward linkages, and (ii) industry interconnectedness. These are described in more detail in this section.

Backward and forward linkages, which were first proposed by Rasmussen (1956), are descriptive measures of the economic interdependence of industries, while industry interconnectedness refers to the number of direct and indirect inter industry transactions.

3 .1 Measures o f backward and forward l inkages

The input output model in its most basic form consists of a system of linear equations, each of which describes the distribution of an industry’s product through the economy. The basic input output identity can be expressed as follows

FAXX += (1)

where [ ]/N1 X,,XX K= is the vector of gross output, N denotes the number of industries, ]a[A ij= is the matrix of technical coefficients and [ ]/N1 F,,FF K= is the vector of final

demand. Technical or input coefficients are the inputs directly required from one industry in order to produce one dollar’s worth of output of another industry.

Equation (1) can be solved for X to obtain

[ ] FAIX 1−−= (2)

where [ ] 1AI −− is non-singular and I is the identity matrix. The matrix [ ] 1AI −− is called the inverted Leontief matrix or total requirement matrix. Total requirement coefficients show how much output is required directly and indirectly from each industry in the economy for every dollar’s worth of output produced for final use. The elements of [ ] 1AI −− are denoted ijb and

the elements of the final demand weighted Leontief inverse by wijb , where

∑=

= N

1ii

iij

wij

F

Fbb (3)

The sum of the elements i in column j

∑=

=N

1i

wij

wj. bb (4)

shows the input requirements for a unit increase in the final demand for sector j ’s output. It is called the backward linkage as it measures the impact on the supplier industries of a unit increase in the final demand for a product. Expressing backward linkage as an index


( )

( ) ∑∑==

== N

1j

wj.

wj.

N

1j

wj.

2

wj.w

j

b

Nb

bN/1

bN/1U (5)

allows making inter industry comparisons. The numerator in equation (5) measures the average stimulus to other sectors, according to each sector’s share in total final demand, resulting from a unit increase in the final demand for sector j ’s output. The denominator measures the average stimulus to the whole economy resulting from a unit increase in the final demand for the output of all sectors.

Conversely, the index of forward linkage is given by

( )( ) ∑∑

==

== N

1i

w.i

w.i

N

1i

w.i

2

w.iw

i

b

Nb

bN/1

bN/1U (6)

where the sum of the elements j in row i

∑=

=N

1j

wij

w.i bb (7)

shows the increase in the output of sector i needed to supply the inputs required to produce a unit of the final demand output in sector j , given each sector’s share in total final demand.

Indices (5) and (6) are averages and hence sensitive to extreme values. For example, a sector with high forward linkages could be selling large amounts of output to only a few sectors. To account for extreme values, Rasmussen (1956) supplements the linkage indices with coefficient of variation indices. They measure the dispersion of a given stimulus and are given by

( ) ( )[ ]( ) w

j.

21

2N

1i

wj.

wij

wj bN/1

bN/1bN/1V

−

=∑=

(8)

and

( ) ( )[ ]( ) w

.i

21

2N

1j

w.i

wij

wi bN/1

bN/1bN/1V

−

=∑=

(9)

The numerators in equations (8) and (9) are the standard deviations and the denominators the averages.

The index wjV ( w

iV ) measures the relative evenness with which industry j ( i ) purchases

from (sells to) other sectors. A relatively large value of wjV ( w

iV ) implies that sector j ( i )

purchases (sells) inputs from (to) only a few industries in the economy.


3 .2 Measures o f indust ry in terconnectedness

Backward and forward linkages assess the magnitude of transactions between industries. Measures of industry interconnectedness, on the other hand, focus on the number of direct and indirect industry sales or purchases. They are related to coefficients of variation.

To determine the degree of industry interconnectedness, Soofi (1992) uses two measures: (i) a measure of concentration, and (ii) entropy as a measure of variation. Measures of concentration focus on the intermediate sector, while entropy based measures of dispersion of inter industry transactions are more descriptive of the characteristics of the economy as a whole.

To derive the measure of concentration, suppose that final demand is zero, i.e.

∑=

=N

1jjiji XaX (10)

This allows normalising the elements of the matrix of technical coefficients A with the

corresponding row sums ∑=

=N

1jij.i aa and column sums ∑

=

=N

1iijj. aa for all i and j , resulting in

matrices ]c[C ij,ii = and ]c[C ij,jj = , where .iijij,i a/ac = and j.ijij,j a/ac = .6

Measures of concentration are then defined as

( ) ( )2/1

N

1j

2ij,iiji c1NaG

−= ∑

=

(11)

and

( ) ( )2/1N

1i

2ij,jijj c1NaG

−= ∑

=

(12)

where equation (11) is the forward concentration index and (12) the backward index.

When sector i sells the same proportion of output to all sectors j , i.e. N/1c ij,i = for all j ,

( ) [ ] 2/1iji 1NaG −= and complete uniformity of intersectoral distribution prevails. Complete

skewness of intersectoral distribution occurs when sector i sells all the output to one sector j , i.e. 1c ij,i = for one j and 0c ij,i = for all other j and ( ) 0aG iji = .

Conversely, when sector j buys the same quantity of inputs from all sectors i , i.e. N/1c ij,j =

for all i , complete uniformity of intersectoral distribution occurs and ( ) [ ] 2/1ijj 1NaG −= . In

contrast, complete skewness of intersectoral distribution occurs when sector j purchases all the inputs from industry i , i.e. 1c ij,j = for one i and 0c ij,j = for all other i . This implies

( ) 0aG ijj = .

6 The matrix of technical coefficients is given by 1XAA −=

)) , where A) is the intermediate input flow

matrix and X) is the diagonal matrix containing on its diagonal the elements for the vector of

gross output X .


The larger is the measure of concentration, ( )..G , the more direct industries ties. Conversely, the smaller the measure of concentration ( )..G is, the fewer inter industry sales or purchases.

Measures of concentration can also be calculated for total requirement matrices, taking into account both direct and indirect requirements.

An alternative measure of industry interconnectedness is entropy. The entropy of sector i is calculated as follows

( ) ∑=

=

N

1i ij,iij,iiji c

1logcaH (13)

and of sector j as

( ) ∑=

=

N

1j ij,jij,jijj c

1logcaH (14)

Note that

ij.,ij., c

1logc is generally replaced by 0c1logclim

ij.,ij.,0c ij.,

=

→

for 0c ij., = (Theil, 1971).

Entropy is a measure of disorder, which has its origin in physics. The (row) entropy ( )iji aH is zero when sector j is the only sector that purchases additional output from sector i following a one dollar increase in sector i ’s delivery of output to final demand.

( ) ( )NlogaH iji = when all sectors of the economy purchase an equal amount of output after

sector i delivers one dollar’s worth of its output to final demand.

Similarly, the (column) entropy ( )ijj aH is zero if sector j purchases additional output from

only one industry in response to a one dollar increase in sector i ’s delivery of output to final demand. ( ) ( )NlogaH ijj = if sector j uniformly increases its intra industry and inter industry

purchases in response to a change in sector i ’s delivery of output to final demand.

The entropies for the weighted total requirement coefficients matrices, taking into account direct and indirect linkages, can be calculated accordingly.

Finally, entropy can be measured taking into account inter industry sales as well as sales to final demand. To measure the impact of deliveries to both the intermediate and final demand sectors normalise

iNiN22i11ii FXaXaXaX ++++= K (15)

by dividing both sides of (15) by iX and applying the entropy formula in equation (13) to the proportions. 0Hi = if sector i sells to one sector only and ( )1NlogHi += when sector i sells an equal amount of output to all intermediate and final demand sectors.


4 Emp i r i ca l resu l t s This section presents the results of backward and forward linkages and measures of industry interconnectedness after a brief discussion of some descriptive statistics of the New Zealand business sector.

4 .1 Some descr ip t ive s ta t is t ics In 1996, slightly less than half (45.6 percent) of total gross output in New Zealand consisted of intermediate products, i.e. inputs into other industries’ production. The remainder (54.4 percent) went to final demand, of which 58.6 percent were for final consumption expenditure, 15.4 percent for gross capital formation and 26 percent were exported abroad. The share of value added in gross output was 44.9 percent.

Table 2 shows the industry breakdown. In 1996, New Zealand’s largest industries in terms of percent of total gross output were wholesale and retail trade (7.9 and 5.8 percent respectively) and ownership of owner-occupied dwellings (4.6 percent). In terms of value added, dairy cattle farming and air transport, services to transport and storage contributed the most to total, economy wide value added at 2.3 percent, followed by commercial property operators (2.2 percent) and central government administration (2.0 percent).

The contribution to value added was negative for investors in other property and virtually zero for services to mining, superannuation fund operation, owner builders, oil and gas exploration, petroleum and coal product manufacturing nec, health insurance, and prefabricated building manufacturing. The contribution of these industries to value added was low, in part because these industries are small. However, the value added for investors in other property, superannuation fund operation, and owner builders was also small as a proportion of their own gross output, at -0.5, 1.7 and 6.4 percent respectively. Operating surplus of investors in other property, services to mining, superannuation fund operation, oil and gas exploration, health insurance and apple and pear growing contributed negatively to value added.

Value added as a share of industry output was largest for public order and safety services, at 80.3 percent, followed by 79.5 percent for primary and secondary education and 78.8 percent for commercial property operators. Value added is high in these industries, in part because of a large labour component.

New Zealand’s two largest exporting industries are meat processing and dairy product manufacturing. In 1996, their share of total exports was about 11.4 and 11.3 percent respectively. Wholesale trade (9 percent) and air transport, services to transport and storage (7.8 percent) were also important exporters.

Exports made up about 60.9 percent of total gross output of the dairy product manufacturing industry and 65.1 percent of meat processing’s total gross output. Only other leather product manufacturing, apple and pear growing, seafood processing and kiwifruit growing exported a larger proportion of their gross output, with kiwifruit growing having the highest share (84.4 percent).

The largest providers of intermediate goods and services were wholesale trade and finance with 3.7 and 2.2 percent of total gross output, while superannuation fund operation and ownership of owner-occupied dwellings did not supply any intermediate products.

I n t e r i n d u s t r y l i n k a g e s i n N e w Z e a l a n d 1 0

Table 2: Some descriptive statistics

Industry share of

total gross

output

Industry share of

total value

added

Value added as a

share of industry

output

Industry share of

total exports

Intermediate products as a

share of industry

output

Exports as a share of

industry output

Intermediate products as a share of total gross output

Consumption expenditure

as a share of total gross

output

Gross capital formation as a

share of total gross output

Other horticulture 0.4 0.4 47.4 0.7 57.0 25.1 0.2 0.1 0.0Apple and pear growing 0.1 0.2 46.0 0.8 14.5 75.0 0.0 0.0 0.0Kiwifruit growing 0.1 0.2 47.4 0.9 14.1 84.4 0.0 0.0 0.0Other fruit growing 0.1 0.1 43.8 0.2 38.6 35.8 0.0 0.0 0.0Mixed livestock and cropping 0.4 0.3 39.6 0.2 82.9 8.3 0.3 0.0 0.0Sheep and beef cattle farming 1.6 1.3 36.9 1.0 96.8 8.8 1.5 0.0 -0.1Dairy cattle farming 1.9 2.3 52.8 0.1 94.0 1.0 1.8 0.0 0.1Other farming 0.4 0.3 41.7 0.2 76.9 9.3 0.3 0.0 0.0Services to agriculture, hunting and trapping 0.5 0.5 45.3 0.1 88.3 3.1 0.4 0.0 0.0Forestry 1.1 1.0 40.6 2.7 49.4 33.6 0.6 0.0 0.2Services to forestry 0.1 0.1 57.9 0.1 87.1 11.1 0.1 0.0 0.0Logging 0.2 0.2 62.8 0.1 92.6 5.2 0.2 0.0 0.0Fishing 0.4 0.3 34.3 0.6 78.4 20.8 0.3 0.0 0.0Coal mining 0.1 0.1 45.6 0.3 56.4 38.2 0.1 0.0 0.0Services to mining 0.0 0.0 38.9 0.0 88.9 0.0 0.0 0.0 0.0Other mining and quarrying 0.4 0.4 44.5 0.9 61.5 34.7 0.2 0.0 0.0Oil and gas extraction 0.5 0.7 63.6 0.6 79.1 16.8 0.4 0.0 0.0Oil and gas exploration 0.0 0.0 26.7 0.0 37.3 8.0 0.0 0.0 0.0Meat processing 2.5 1.3 23.6 11.4 20.4 65.1 0.5 0.4 0.0Poultry processing 0.2 0.1 24.8 0.0 43.0 2.4 0.1 0.1 0.0Bacon, ham and small good manufacturing 0.1 0.1 26.3 0.0 28.1 4.6 0.0 0.1 0.0Dairy product manufacturing 2.6 0.8 13.8 11.3 15.2 60.9 0.4 0.4 0.2Fruit and vegetable, oil and fat, cereal and flour manufacturing 0.7 0.4 24.4 1.1 38.1 23.3 0.3 0.2 0.0Bakery, sugar and confectionery manufacturing 0.6 0.4 25.0 0.6 34.2 13.0 0.2 0.3 0.0Seafood processing 0.7 0.4 27.3 4.0 10.6 82.1 0.1 0.0 0.0Other food manufacturing 0.6 0.4 29.2 0.9 43.7 21.8 0.3 0.2 0.0Soft drink, cordial and syrup manufacturing 0.2 0.2 34.5 0.1 32.1 5.0 0.1 0.1 0.0Beer, wine, spirit and tobacco manufacturing 0.7 0.4 28.6 0.5 27.2 11.5 0.2 0.4 0.0Textile manufacturing 0.7 0.5 30.5 1.5 52.6 29.3 0.4 0.1 0.0Clothing manufacture 0.5 0.4 38.3 0.9 17.1 29.2 0.1 0.2 0.0Footwear manufacture 0.1 0.1 43.6 0.2 3.2 39.1 0.0 0.0 0.0Other leather product manufacturing 0.2 0.1 25.8 1.2 24.5 69.7 0.1 0.0 0.0Log sawmilling and timber dressing 0.8 0.5 26.8 1.4 74.1 24.9 0.6 0.0 0.0Other wood product manufacturing 0.7 0.5 32.7 1.6 63.6 30.7 0.5 0.0 0.0Paper and paper product manufacturing 1.5 1.3 38.1 3.8 53.0 34.5 0.8 0.2 0.0Printing and services to printing 0.8 0.8 42.6 0.3 82.5 5.3 0.7 0.1 0.0Publishing, recorded media manufacturing 0.8 0.9 47.6 0.2 79.1 2.6 0.7 0.2 0.0Petroleum refining 0.7 0.1 7.3 0.4 57.0 8.3 0.4 0.2 0.0Petroleum and coal product manufacturing nec 0.0 0.0 25.3 0.0 64.6 12.7 0.0 0.0 0.0Fertiliser manufacturing 0.3 0.2 21.2 0.0 92.7 1.6 0.3 0.0 0.0Other industrial chemical manufacturing 0.6 0.4 28.7 1.3 63.9 30.1 0.4 0.0 0.0Medicinal, detergent and cosmetic manufacturing 0.5 0.3 29.5 1.0 30.7 27.8 0.2 0.2 0.0Other chemical product manufacturing 0.4 0.2 26.5 0.6 71.1 23.5 0.3 0.0 0.0Rubber manufacturing 0.2 0.2 39.6 0.3 61.6 24.7 0.1 0.0 0.0Plastic product manufacturing 0.8 0.7 37.7 1.1 67.7 19.6 0.5 0.1 0.0Glass and glass product and ceramic manufacturing 0.2 0.2 43.4 0.2 80.2 12.0 0.1 0.0 0.0Other non-metallic mineral product manufacturing 0.6 0.5 42.1 0.1 93.0 2.7 0.5 0.0 0.0Basic metal manufacturing 1.0 0.6 30.4 2.4 62.5 36.2 0.6 0.0 0.0Structural, sheet and fabricated metal product manufacturing 1.5 1.3 37.0 1.9 73.6 17.6 1.1 0.0 0.1Motor vehicle and part manufacturing 0.9 0.4 18.5 0.4 27.7 6.8 0.2 0.2 0.4Ship and boat building 0.2 0.2 40.4 0.3 20.6 21.8 0.0 0.1 0.1Other transport equipment manufacturing 0.3 0.3 43.8 0.2 79.2 12.1 0.2 0.0 0.0Photographic and scientific equipment manufacturing 0.1 0.1 40.6 0.3 41.1 36.5 0.0 0.0 0.0Electronic equipment and appliance manufacturing 1.1 0.8 32.7 1.9 32.7 25.5 0.3 0.2 0.3Agricultural machinery manufacturing 0.2 0.1 41.0 0.2 25.3 19.1 0.0 0.0 0.1Other industrial machinery and equipment manufacturing 0.9 0.8 40.8 1.4 31.1 22.1 0.3 0.0 0.4Prefabricated building manufacturing 0.1 0.0 25.2 0.1 82.0 14.4 0.0 0.0 0.0Furniture manufacturing 0.5 0.4 33.4 0.4 25.8 9.7 0.1 0.2 0.2Other manufacturing 0.2 0.2 40.1 0.5 37.5 33.4 0.1 0.0 0.0Electricity generation 0.7 0.8 54.4 0.0 69.1 0.1 0.5 0.2 0.0Electricity transmission 0.3 0.5 71.4 0.0 99.4 0.0 0.3 0.0 0.0Electricity supply 1.5 1.0 30.2 0.0 69.2 0.0 1.0 0.5 0.0Gas supply 0.3 0.2 39.0 0.3 59.7 16.4 0.1 0.1 0.0


Table 3: Some descriptive statistics (cont.)

Industry share of

total gross

output

Industry share of

total value

added

Value added as a

share of industry

output

Industry share of

total exports

Intermediate products as a

share of industry

output

Exports as a share of

industry output

Intermediate products as a share of total gross output

Consumption expenditure

as a share of total gross

output

Gross capital formation as a

share of total gross output

Water supply 0.2 0.2 42.8 0.0 100.0 0.0 0.2 0.0 0.0Residential building construction 1.4 0.7 21.4 0.0 12.5 0.3 0.2 0.0 1.2Owner builders 0.4 0.0 1.7 0.0 7.3 0.0 0.0 0.0 0.4Non residential building construction 1.1 0.4 15.8 0.1 27.1 1.2 0.3 0.0 0.8Non building construction 1.3 1.0 33.5 0.0 35.6 0.3 0.5 0.0 0.9Site preparation services 0.4 0.3 39.9 0.0 33.3 0.1 0.1 0.0 0.2Building structure services 0.3 0.2 39.9 0.0 69.1 0.0 0.2 0.0 0.1Plumbing services 0.3 0.3 37.4 0.0 44.5 0.2 0.2 0.0 0.2Installation trade services 0.8 0.6 36.8 0.1 55.6 1.3 0.4 0.0 0.3Building completion services 0.7 0.7 43.0 0.0 69.0 0.2 0.5 0.0 0.2Other construction services 0.2 0.2 41.9 0.0 79.9 0.0 0.1 0.0 0.0Wholesale trade 7.9 7.7 44.0 9.0 46.6 16.2 3.7 2.3 0.7Retail trade 5.8 6.7 51.2 3.4 26.1 8.1 1.5 3.6 0.3Accommodation 0.6 0.6 42.8 1.7 14.0 40.5 0.1 0.3 0.0Bars, clubs, cafes and restaurants 1.1 0.8 32.9 1.9 7.7 24.3 0.1 0.8 0.0Road freight transport 1.4 1.4 45.0 0.2 95.7 2.1 1.3 0.0 0.0Road passenger transport 0.3 0.3 49.5 0.4 40.3 19.0 0.1 0.1 0.0Water and rail transport 0.8 1.0 58.2 2.2 54.0 38.2 0.4 0.1 0.0Air transport, services to transport and storage 2.6 2.3 38.8 7.8 39.5 41.6 1.0 0.5 0.0Communication services 2.5 3.5 61.6 1.0 64.2 5.6 1.6 0.7 0.1Finance 2.8 3.9 62.0 0.4 77.4 1.8 2.2 0.6 0.0Life insurance 0.4 0.3 31.7 0.0 10.3 0.1 0.0 0.3 0.0Superannuation fund operation 0.1 0.0 6.4 0.0 0.0 0.0 0.0 0.1 0.0Health insurance 0.0 0.0 32.9 0.0 17.1 0.0 0.0 0.0 0.0General insurance 0.5 0.6 52.6 0.0 65.2 1.1 0.3 0.2 0.0Services to finance and insurance 0.7 0.7 46.8 0.1 96.0 1.7 0.6 0.0 0.0Residential property operators 1.3 1.7 61.7 0.0 1.6 0.4 0.0 1.2 0.0Commercial property operators 1.3 2.2 78.8 0.0 99.4 0.5 1.3 0.0 0.0Real estate agents 0.7 0.7 41.0 0.0 49.1 0.1 0.4 0.0 0.3Ownership of owner-occupied dwellings 4.6 7.5 72.6 0.0 0.0 0.0 0.0 4.6 0.0Investors in other property 0.2 0.0 -0.6 0.1 88.0 9.9 0.2 0.0 0.0Vehicle and equipment hire 0.6 0.7 52.0 0.7 80.9 16.8 0.5 0.0 0.0Scientific research 0.3 0.4 63.4 0.1 43.4 5.1 0.1 0.1 0.0Technical services 0.9 1.1 55.8 0.2 74.9 3.8 0.6 0.0 0.2Computer services 0.8 0.9 54.9 0.1 88.1 2.4 0.7 0.0 0.1Legal services 0.6 0.9 69.4 0.1 75.7 3.1 0.5 0.1 0.1Accounting services 0.5 0.8 69.9 0.1 95.2 2.6 0.5 0.0 0.0Advertising and marketing services 0.9 0.8 37.7 0.2 95.4 2.7 0.9 0.0 0.0Business administrative and management services 0.7 0.8 49.4 0.1 94.5 2.7 0.7 0.0 0.0Employment, security and investigative services 0.4 0.5 60.2 0.0 97.7 1.0 0.4 0.0 0.0Pest control and cleaning services 0.2 0.4 68.8 0.0 89.5 0.7 0.2 0.0 0.0Other business services 0.7 0.6 39.5 0.3 87.7 6.4 0.6 0.0 0.0Central government administration 2.0 2.0 46.2 0.2 10.1 1.2 0.2 1.7 0.0Defence 0.5 0.7 62.7 0.0 0.6 0.6 0.0 0.5 0.0Public order and safety services 0.5 0.9 80.3 0.0 1.2 0.2 0.0 0.5 0.0Local government administration services and civil defence 1.5 1.5 45.0 0.1 7.9 0.9 0.1 1.3 0.0Pre-school education 0.1 0.2 67.1 0.0 2.7 0.9 0.0 0.1 0.0Primary and secondary education 1.4 2.4 79.5 0.3 4.9 3.0 0.1 1.3 0.0Post school education 0.8 1.3 70.1 0.5 6.2 8.1 0.0 0.7 0.0Other education 0.3 0.3 52.2 0.2 62.8 9.4 0.2 0.1 0.0Hospitals and nursing homes 1.7 2.7 71.0 0.1 2.1 0.4 0.0 1.7 0.0Medical, dental and other health services 1.0 1.5 63.6 0.1 13.7 1.0 0.1 0.9 0.0Veterinary services 0.1 0.1 62.7 0.0 42.2 3.7 0.0 0.0 0.0Child care services 0.1 0.1 63.6 0.0 33.6 0.0 0.0 0.0 0.0Accommodation for the aged 0.3 0.4 61.4 0.0 13.6 0.6 0.0 0.2 0.0Other community care services 0.2 0.3 53.9 0.0 9.2 1.6 0.0 0.2 0.0Motion picture, radio and TV services 0.7 0.6 38.5 0.2 75.3 4.7 0.5 0.1 0.0Libraries, museums and the arts 0.2 0.2 46.1 0.2 36.3 10.3 0.1 0.1 0.0Horse and dog racing 0.1 0.1 33.5 0.2 56.0 28.2 0.1 0.0 0.0Lotteries, casinos and other gambling 0.3 0.4 62.4 0.2 5.2 8.3 0.0 0.3 0.0Other sport and recreational services 0.5 0.4 32.7 0.8 15.4 21.7 0.1 0.3 0.0Personal and other community services 0.9 1.0 53.4 0.3 30.5 5.1 0.3 0.6 0.0Waste disposal, sewerage and drainage services 0.1 0.2 48.7 0.0 95.2 1.1 0.1 0.0 0.0


In 1996, ownership of owner-occupied dwellings, retail and wholesale trade were the largest suppliers of final consumption expenditure, with 14.6, 11.2 and 7.1 percent of total final consumption expenditure. Services to mining and water supply did not provide any final consumption expenditure, with water supply not producing any final demand output.

New Zealand industries produce a relatively small share of gross capital formation, 8.4 percent of total gross output in 1996, of which residential building construction supplied most of gross fixed capital (1.2 percent of total gross output), followed by non building construction (0.9 percent) and non residential building construction (0.8 percent). Gross capital formation, which is the sum of gross fixed capital formation and the change in inventories, was negative for some industries because of a decline in inventories.

4 .2 Backward and forward l inkages The structure of production of the New Zealand economy can be assessed more formally with measures of backward and forward linkages. Backward and forward indices reported in this section are based on total requirement coefficients and hence take into account both direct and indirect linkages. Backward linkages measure the impact on the supplier industries of a dollar increase in the final demand for a particular industry’s product. Forward linkages, on the other hand, measure the increase in the output of industry i needed to supply the inputs required to produce a unit of the final demand output in industry j .

Figures 1 and 2 plot the indices of backward and forward linkages for all 126 industries, using each sector’s share in total final demand as a set of weights. Wholesale trade, ownership of owner-occupied dwellings, and retail trade have the largest backward linkage followed by dairy product manufacturing and meat processing. A high backward linkage means that an increase in the final demand of any of these industries’ output will have a large impact on industries that supply inputs in the production of these industries’ output.

Wholesale trade has also the largest forward linkage. This means that output in the wholesale trade sector must increase following an increase in final demand output in other industries in order to provide the required inputs for the production of an additional dollar’s worth of final demand. Retail trade has the second largest forward linkage although substantially smaller than wholesale trade.

7 Air transport, services to transport and storage,

ownership of owner-occupied dwellings, communication services, meat processing, finance, and dairy product manufacturing also have relatively large forward linkages. These industries, apart from air transport, services to transport and storage, communication services, and finance, also have large backward linkage. At the bottom of the ranking for forward linkages is water supply as it does not produce any final output.

Alternatively, backward and forward linkages can be weighted by exports, with the results reported in Figures 3 and 4. Backward linkages are highest for meat processing, dairy product manufacturing, wholesale trade and air transport, services to transport and storage, largely because of their high proportion of total exports. Other leather product manufacturing and seafood processing also have high backward linkages and an increase in final demand in these industries will affect the output of other industries.

7 Chatterjee (1989) notes a bias in the forward linkage. This issue requires further investigation.


When weighted by exports, wholesale trade, air transport, services to transport and storage, meat processing, and dairy product manufacturing have large backward as well as forward linkages. The forward linkages of retail trade, and paper and paper product manufacturing are also relatively high.

Backward and forward linkages are sensitive to extreme values and coefficient of variation indices are often calculated in addition. The backward and forward coefficient of variation indices weighted by final demand are plotted in Figures 5 and 6 and weighted by exports in Figures 7 and 8. The backward (forward) index measures the relative evenness with which an industry purchases from (sells to) other sectors. A relatively large value implies that a sector purchases (sells) inputs only from (to) a few industries in the economy.

The backward coefficient of variation indices weighted by final demand and exports are high, i.e. the number of transactions with other industries is low, for some of the industries with large backward linkages, like ownership of owner-occupied dwellings, wholesale and retail trade, meat processing, dairy product manufacturing, and air transport, services to transport and storage. This indicates that the strong backward linkage of these industries is mainly the result of large inter industry transactions with only a few industries rather than widespread transactions with many different industries. The index is relatively stable for most sectors, varying between 3 and 6.5 for about 82 percent of the industries.

The rankings of industries by forward coefficients of variation are very similar for the indices weighted by final demand and exports. Measured in terms of evenness of transactions across industries, wholesale trade is the sector with most forward linkages. In fact, wholesale trade sells output to all industries except mining. Meat processing, on the other hand, moves down in the ranking when industry linkages are measured in terms of evenness of transactions across industries, while finance and communication services move up.

4 .3 Indust ry in terconnectedness Indices of concentration as a measure of industry interconnectedness focus on the number of sales or purchases (either direct or both direct and indirect) across industries (rather than the magnitude of transactions) and are hence related to coefficients of variation.

Figures 9 and 10 plot the backward and forward concentration indices for input coefficients, which measure direct transactions. Figure 9 shows that the backward concentration index is very similar across industries, at around 11. This means that industries tend to buy from a large number of supplier industries. Among the industries with somewhat lower backward concentration are meat processing, fertiliser manufacturing, electricity transmission, commercial property operators, seafood processing, other leather product manufacturing, life insurance, real estate agents, general insurance, log sawmilling and timber dressing, water supply, and dairy product manufacturing. A low backward concentration index means that these industries do not require inputs from a lot of other industries to produce an additional unit of final output.

Some of these industries with low backward concentration have larger forward indices, i.e. they sell to more industries than they buy from, and hence move up in the ranking for forward concentration, like general insurance and commercial property operators, for example.

The forward concentration index is slightly more variable across industries than the backward index, in particular at the bottom end. Wholesale and retail trade have the largest forward


concentration, while the index could not be calculated for industries that do not have forward linkages, namely ownership of owner-occupied dwellings and superannuation fund operation.

Backward and forward concentration indices for total requirement coefficients, taking account of both direct and indirect transactions, are plotted in Figures 11 and 12. The backward concentration index for total requirement coefficients indicates how widespread across the economy the effects on supplier industries are from a dollar increase in final demand output by a particular industry. As in the case of the backward index for input coefficients (direct transactions), the effect on other industries is fairly even, i.e. the backward index is not very different across industries, and large. That is, industries purchase inputs from a large number of different industries to produce an additional dollar of final output.

However, a comparison of Figures 9 and 11 shows that the ranking of some industries changes dramatically when taking into account indirect linkages. For example, dairy product manufacturing purchases the least from other industries directly, but moves up to 15th place when also accounting for indirect transactions. Another example is scientific research, which moves from most direct backward transactions to 90th place for direct and indirect purchases.

A comparison of the backward and forward concentration indices for total requirement coefficients (Figures 9 and 10) shows that the forward concentration index differs more widely across industries than the backward index. Some industries (those with a high forward index) sell output to a large number of industries, while those with a low index only sell to a few. The forward index is largest for wholesale trade, finance, retail trade, and communication services and small or zero for pre-school education, public order and safety services, defence, lotteries, casinos and other gambling, footwear manufacture, ownership of owner-occupied dwellings, and superannuation fund operation. A small or zero index means that these industries are generally unaffected by changes in final output in the rest of the economy.

Taking into account indirect transactions does not change the industry ranking as much as for the forward concentration index. This indicates that industries that indirectly sell to a lot of industries also have strong direct inter industries ties.

A second measure of industry interconnectedness is entropy. The row entropy is conceptually parallel to the backward concentration index and the column index to the forward index. A small row entropy means that following an increase in industry i ’s final output, industry i only sells additional output to a few industries. A small column entropy, on the other hand, implies that other industries only purchase additional output from a few industries following an increase in industry i ’s final output.

The row and column entropy for input coefficients are plotted in Figures 13 and 14. Two main points emerge from the comparison of the entropy measures and concentration indices for input coefficients. First, although the ranking of industries is different for the two measures, those industries that are in the top (bottom) half for the entropy measure are also in the top (bottom) half for the concentration index. Second, the column entropy shows larger variation than the row entropy, which is in line with the forward concentration index differing more across industries than the backward index.

The row and column entropies for total requirement coefficients weighted by final demand, i.e. taking into account both direct and indirect transactions, are plotted in Figures 15 and 16 and weighted by exports in Figures 17 and 18. The ranking of industries for total


requirement coefficient entropies weighted by final demand and exports are similar, but different from the input coefficient entropies.

Industries with large row entropies for total requirement coefficients include non residential building construction, owner builders, residential building construction, and investors in other property. That is, a large number of industries will buy additional output from these industries following an increase in final demand for the output of these industries. Industries with small row entropies include ownership of owner-occupied dwellings, other transport equipment manufacturing, and public order and safety services. An increase in the final output of these industries will largely leave other industries unaffected.

Column entropies weighted by final demand or exports are largest for wholesale trade. They are also high for a few other industries, including retail trade, air transport, services to transport and storage, communication services, paper and paper product manufacturing, meat processing, and dairy product manufacturing. A large column entropy means that following an increase in these industries final demand output will have a large stimulatory effect on the rest of the economy.

Finally, the (row) entropy, taking into account both inter industry sales and sales to final demand is plotted in Figure 19. When taking into account intermediate and final sales, accounting services, business administration and management services, other business services, and employment, security and investigative services have the largest entropy. That is, a large number of households, private non-profit institutions serving households and government institutions will buy additional output from these industries following an increase in these industries’ output. Moreover, other industries will also buy additional output from these industries in the form of intermediate products. The entropy is small for hospitals and nursing homes, residential property operators, pre-school education, footwear manufacture, public order and safety services and defence, and zero for ownership of owner-occupied dwellings, and superannuation fund operations.

5 C o n c l u d i n g r e m a r k s

This paper has investigated the production structure of the New Zealand business sector using the recently released 1996 input output tables. Measures of industry interconnectedness are fairly similar across industries and large, in particular for backward linkages. This suggests that New Zealand industries generally had strong industry ties in 1996. Backward and forward linkages show how much each industry buys from (sells to) other industries, directly and indirectly, following a unit increase in the final demand for its output. In 1996, wholesale and retail trade, ownership of owner-occupied dwellings, meat processing, dairy product manufacturing, and air transport, services to transport and storage had the strongest backward and forward linkages. Measured in terms of number of transactions, the backward linkages of some of these industries are less strong. Moreover, it was found that the ranking of industries by degree of interconnectedness can change dramatically depending on whether direct transactions or both direct and indirect transactions are considered. When taking into account intermediate and final sales, accounting services, business administration and management services, other business services, and employment, security and investigative services have the largest inter industry ties.

The next step of the analysis will be to calculate statistics of inter industry linkages that incorporate value added.


Figure 1: Backward linkages (weighted by final demand) 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Wholesale t rade Ownership of owner-occupied dwellings

Retail t rade Dairy product manufacturing

M eat processing Central government administrat ion

Residential building construct ion Air t ransport, services to t ransport and storage

Bars, clubs, cafes and restaurants Local government administrat ion services and civil defence

Hospitals and nursing homes Non building construct ion

Non resident ial building construct ion Bacon, ham and small good manufacturing

Resident ial property operators M otor vehicle and part manufacturing

Other leather product manufacturing Electronic equipment and appliance manufacturing

Primary and secondary education Paper and paper product manufacturing

Seafood processing Fruit and vegetable, oil and fat, cereal and f lour

Other industrial machinery and equipment manufacturing Text ile manufacturing

Bakery, sugar and confect ionery manufacturing Beer, wine, spirit and tobacco manufacturing

Structural, sheet and fabricated metal product manufacturing Owner builders

Accommodation M edicinal, detergent and cosmet ic manufacturing

M edical, dental and other health services Communicat ion services Furniture manufacturing

Forestry Installat ion trade services

Other sport and recreat ional services Other industrial chemical manufacturing

Other food manufacturing Other chemical product manufacturing

Site preparat ion services Other wood product manufacturing

Road passenger transport Post school education

Personal and other community services Log sawmilling and t imber dressing

Footwear manufacture Soft drink, cordial and syrup manufacturing

Clothing manufacture Road freight transport

Building complet ion services Basic metal manufacturing

Plumbing services Poultry processing

Ship and boat building Electricity supply

Fert iliser manufacturing Defence Finance

Real estate agents Petroleum and coal product manufacturing nec

Prefabricated building manufacturing Other construct ion services

Horse and dog racing Investors in other property

Print ing and services to print ing Services to agriculture, hunting and t rapping

Publishing, recorded media manufacturing Other farming

Other mining and quarrying Services to mining

Other business services Agricultural machinery manufacturing

Vehicle and equipment hire Sheep and beef catt le

Lotteries, casinos and other gambling M ixed livestock and cropping Plast ic product manufacturing

Other hort iculture Oil and gas explorat ion

Water and rail t ransport Apple and pear growing

Kiwif ruit growing Photographic and scient if ic equipment manufacturing

Other manufacturing Dairy cat t le farming

Building structure services Health insurance

Other f ruit growing Life insurance

Public order and safety services Other community care services Superannuat ion fund operat ion

Technical services Other non-metallic mineral product manufacturing

Advert ising and market ing services Glass and glass product and ceramic manufacturing

Accommodation for the aged Libraries, museums and the arts

Computer services Other education

Waste disposal, sewerage and drainage services Rubber manufacturing

Business administrat ive and management services Logging

Gas supply M otion picture, radio and TV services

Services to forestry Fishing

Coal mining Scientif ic research

Veterinary services Electricity generat ion Oil and gas extract ion

Petroleum ref ining Legal services

Pre-school education Child care services

Services to f inance and insurance General insurance

Pest control and cleaning services Employment, security and invest igat ive services

Other transport equipment manufacturing Account ing services

Water supply Electricity t ransmission

Commercial property operators


Figure 2: Forward linkages (weighted by final demand)

0 5 10 15 20 25 30 35 40

Wholesale trade Retail t rade

Air transport , services to t ransport and storage Ownership of owner-occupied dwellings

Communication services M eat processing

Finance Dairy product manufacturing

Central government administrat ion Paper and paper product manufacturing

Hospitals and nursing homes Local government administrat ion services and civil

Resident ial building construct ion Electricity supply

Non building construct ion Primary and secondary educat ion

Forestry Structural, sheet and fabricated metal product

Non resident ial building construct ion Resident ial property operators

Electronic equipment and appliance manufacturing Bars, clubs, cafes and restaurants

M edical, dental and other health services Other industrial machinery and equipment

M otor vehicle and part manufacturing Personal and other community services

Basic metal manufacturing Post school educat ion

Water and rail t ransport Seafood processing

Petroleum ref ining Fruit and vegetable, oil and fat , cereal and f lour

Real estate agents Beer, wine, spirit and tobacco manufacturing

Text ile manufacturing Technical services

Bakery, sugar and confect ionery manufacturing Accommodat ion

Installat ion t rade services Plast ic product manufacturing

Other food manufacturing Other sport and recreational services

Public order and safety services M edicinal, detergent and cosmet ic manufacturing

Log sawmilling and t imber dressing Defence

Other wood product manufacturing Furniture manufacturing

Other industrial chemical manufacturing Publishing, recorded media manufacturing

Electricity generat ion Clothing manufacture

M ot ion picture, radio and TV services Owner builders

Print ing and services to print ing Life insurance

General insurance Building complet ion services

Legal services Site preparat ion services

Other mining and quarrying Lot teries, casinos and other gambling

Accommodat ion for the aged Oil and gas extract ion

Plumbing services Dairy catt le farming

Road freight t ransport Vehicle and equipment hire

Computer services Other hort iculture

Road passenger t ransport Other leather product manufacturing

Other community care services Other business services

Scient if ic research Other chemical product manufacturing

Ship and boat building Libraries, museums and the arts

Other educat ion Gas supply

Fishing Soft drink, cordial and syrup manufacturing

Other manufacturing Poult ry processing

Services to agriculture, hunting and trapping Sheep and beef cat t le

Bacon, ham and small good manufacturing Kiwifruit growing

Other farming Apple and pear growing

Agricultural machinery manufacturing Advert ising and marketing services

Pre-school educat ion Business administrat ive and management services

Building structure services M ixed livestock and cropping

Other non-metallic mineral product manufacturing Other t ransport equipment manufacturing

Services to f inance and insurance Rubber manufacturing

Superannuat ion fund operat ion Footwear manufacture

Photographic and scient if ic equipment manufacturing Coal mining

Other fruit growing Accounting services

Horse and dog racing Veterinary services

Glass and glass product and ceramic manufacturing Fert iliser manufacturing

Other construct ion services Child care services

Pest control and cleaning services Health insurance

Investors in other property Commercial property operators

Oil and gas explorat ion Logging

Employment, security and invest igat ive services Petroleum and coal product manufacturing nec

Services to forestry Prefabricated building manufacturing

Waste disposal, sewerage and drainage services Electricity transmission

Services to mining Water supply


Figure 3: Backward linkages (weighted by exports)

0 1 2 3 4 5 6 7

M eat processing Dairy product manufacturing

Wholesale t rade Air t ransport, services to t ransport and storage

Other leather product manufacturing Seafood processing

Paper and paper product manufacturing Bars, clubs, cafes and restaurants

Bacon, ham and small good manufacturing Retail t rade

Structural, sheet and fabricated metal product manufacturing Text ile manufacturing

Electronic equipment and appliance manufacturing Forestry

Other wood product manufacturing Basic metal manufacturing

Log sawmilling and t imber dressing Accommodation

M edicinal, detergent and cosmet ic manufacturing Other industrial chemical manufacturing

Other industrial machinery and equipment manufacturing Fruit and vegetable, oil and fat, cereal and f lour

Water and rail t ransport Other chemical product manufacturing

Other food manufacturing Footwear manufacture

Bakery, sugar and confect ionery manufacturing Furniture manufacturing

Prefabricated building manufacturing Beer, wine, spirit and tobacco manufacturing

Sheep and beef catt le Plast ic product manufacturing

Non resident ial building construct ion Residential building construct ion

Clothing manufacture M otor vehicle and part manufacturing

Print ing and services to print ing Petroleum and coal product manufacturing nec

Other mining and quarrying Kiwif ruit growing

Soft drink, cordial and syrup manufacturing Fert iliser manufacturing

Other sport and recreat ional services Ship and boat building

Apple and pear growing Other manufacturing

Publishing, recorded media manufacturing Agricultural machinery manufacturing

Other hort iculture Poultry processing

Road passenger transport Vehicle and equipment hire

Oil and gas explorat ion Other business services

Installat ion trade services Road freight transport

Investors in other property Non building construct ion

Other construct ion services Building complet ion services

Photographic and scient if ic equipment manufacturing Other farming

Plumbing services Services to agriculture, hunting and t rapping

M ixed livestock and cropping Communicat ion services

Glass and glass product and ceramic manufacturing Site preparat ion services

Horse and dog racing Owner builders

Advert ising and market ing services Other non-metallic mineral product manufacturing

Other f ruit growing Fishing

Rubber manufacturing Oil and gas extract ion

Coal mining Services to mining

Building structure services Dairy cat t le farming

Health insurance Gas supply

Technical services Lotteries, casinos and other gambling

Personal and other community services Business administrat ive and management services

Logging Central government administrat ion

Computer services Services to forestry

Other education Post school education

Defence Local government administrat ion services and civil defence

Superannuat ion fund operat ion Finance

Waste disposal, sewerage and drainage services Petroleum ref ining

Libraries, museums and the arts M otion picture, radio and TV services

Other transport equipment manufacturing Resident ial property operators

Veterinary services Scientif ic research

Services to f inance and insurance Other community care services

Hospitals and nursing homes Primary and secondary education

Employment, security and invest igat ive services Life insurance

M edical, dental and other health services Pest control and cleaning services

Legal services Accommodation for the aged

Account ing services Real estate agents

Water supply Electricity generat ion Pre-school education

Ownership of owner-occupied dwellings Child care services

Electricity supply Electricity t ransmission

General insurance Public order and safety services Commercial property operators


Figure 4: Forward linkages (weighted by exports)

0 5 10 15 20 25 30 35 40 45

Wholesale t rade Air t ransport, services to t ransport and storage

M eat processing Dairy product manufacturing

Retail t rade Paper and paper product manufacturing

Forestry Structural, sheet and fabricated metal product manufacturing

Basic metal manufacturing Communicat ion services Water and rail t ransport

Seafood processing Electronic equipment and appliance manufacturing

Log sawmilling and t imber dressing Other wood product manufacturing

Sheep and beef catt le Other industrial chemical manufacturing

Text ile manufacturing Plast ic product manufacturing

Bars, clubs, cafes and restaurants Other industrial machinery and equipment manufacturing

Finance Accommodation

Other mining and quarrying Fruit and vegetable, oil and fat , cereal and f lour manufacturing

Oil and gas extract ion Vehicle and equipment hire

Other leather product manufacturing Other food manufacturing

M edicinal, detergent and cosmet ic manufacturing Clothing manufacture

Other chemical product manufacturing Fishing

Other hort iculture Other sport and recreat ional services

Petroleum ref ining Kiwif ruit growing

Bakery, sugar and confect ionery manufacturing Road freight transport

Print ing and services to print ing Apple and pear growing Other business services

Beer, wine, spirit and tobacco manufacturing Technical services

M otor vehicle and part manufacturing M otion picture, radio and TV services

Other manufacturing Road passenger transport

Post school education Advert ising and market ing services

Personal and other community services Gas supply

Furniture manufacturing Business administrat ive and management services

Publishing, recorded media manufacturing Coal mining

Rubber manufacturing Other transport equipment manufacturing

Other farming Ship and boat building

Computer services Primary and secondary education

M ixed livestock and cropping Dairy cat t le farming

Legal services Photographic and scient if ic equipment manufacturing

Other education Services to agriculture, hunting and t rapping

Horse and dog racing Central government administrat ion

Services to f inance and insurance Other f ruit growing

Other non-metallic mineral product manufacturing Agricultural machinery manufacturing

Footwear manufacture Account ing services

Glass and glass product and ceramic manufacturing Libraries, museums and the arts

Investors in other property Lotteries, casinos and other gambling

Commercial property operators Non resident ial building construct ion

Scientif ic research Installat ion trade services

Local government administrat ion services and civil defence Logging

M edical, dental and other health services Services to forestry

Fert iliser manufacturing Soft drink, cordial and syrup manufacturing

General insurance Prefabricated building manufacturing

Bacon, ham and small good manufacturing Hospitals and nursing homes

Employment, security and invest igat ive services Non building construct ion

Resident ial building construct ion Poultry processing

Petroleum and coal product manufacturing nec Resident ial property operators Other community care services

Veterinary services Oil and gas explorat ion

Defence Waste disposal, sewerage and drainage services

Pest control and cleaning services Electricity supply

Accommodation for the aged Building complet ion services

Electricity generat ion Pre-school education

Public order and safety services Real estate agents Plumbing services

Site preparat ion services Life insurance

Building structure services Ownership of owner-occupied dwellings

Superannuat ion fund operat ion Health insurance

Child care services Services to mining

Owner builders Electricity t ransmission

Other construct ion services Water supply


Figure 5: Backward coefficient of variation index (weighted by final demand)

0 2 4 6 8 10 12

Child care services Coal mining

Superannuat ion fund operat ion Services to f inance and insurance

Pre-school education Other community care services

Libraries, museums and the arts Gas supply

Other education Horse and dog racing

Other mining and quarrying Business administrat ive and management services

Employment, security and invest igat ive services Oil and gas extract ion

Health insurance Owner builders

Account ing services Oil and gas explorat ion

Log sawmilling and t imber dressing Other business services

Scientif ic research Accommodation for the aged

Fishing Electricity t ransmission

Legal services Other wood product manufacturing

Kiwif ruit growing M otion picture, radio and TV services

Computer services Technical services

Other sport and recreat ional services Advert ising and market ing services

Glass and glass product and ceramic manufacturing Site preparat ion services Apple and pear growing

Other hort iculture Investors in other property

Water supply Poultry processing

Commercial property operators Publishing, recorded media manufacturing

Other food manufacturing Building complet ion services

Print ing and services to print ing Accommodation

Electricity generat ion Other f ruit growing Services to forestry

Pest control and cleaning services Services to mining

Bacon, ham and small good manufacturing Prefabricated building manufacturing

M ixed livestock and cropping Veterinary services

Ship and boat building Furniture manufacturing

Other farming Vehicle and equipment hire

Plumbing services General insurance

Footwear manufacture Dairy cat t le farming

Life insurance Installat ion trade services

Other non-metallic mineral product manufacturing Plast ic product manufacturing

M edicinal, detergent and cosmet ic manufacturing Basic metal manufacturing

Other manufacturing Lotteries, casinos and other gambling

Bakery, sugar and confect ionery manufacturing Building structure services Road passenger transport

Fruit and vegetable, oil and fat, cereal and f lourSoft drink, cordial and syrup manufacturing

Non residential building construct ion Beer, wine, spirit and tobacco manufacturing

Sheep and beef catt le Services to agriculture, hunting and t rapping

Waste disposal, sewerage and drainage services Other leather product manufacturing

Logging Bars, clubs, cafes and restaurants

Road freight transport Agricultural machinery manufacturing

Photographic and scient if ic equipment manufacturing Other transport equipment manufacturing

M otor vehicle and part manufacturing Other construct ion services

Seafood processing Petroleum and coal product manufacturing nec

Forestry Other industrial machinery and equipment manufacturing

Other industrial chemical manufacturing Defence

Clothing manufacture Rubber manufacturing

Structural, sheet and fabricated metal productText ile manufacturing

Water and rail t ransport Non building construct ion

Electronic equipment and appliance manufacturing Personal and other community services

Residential building construct ion Paper and paper product manufacturing

Other chemical product manufacturing Real estate agents Electricity supply

Public order and safety services Petroleum ref ining

Post school education Local government administrat ion services and civil

M edical, dental and other health services Finance

Fert iliser manufacturing M eat processing

Residential property operators Dairy product manufacturing

Central government administrat ion Communicat ion services

Hospitals and nursing homes Air t ransport, services to transport and storage

Primary and secondary education Retail t rade

Wholesale t rade Ownership of owner-occupied dwellings


Figure 6: Forward coefficient of variation index (weighted by final demand)

0 2 4 6 8 10 12

Wholesale trade Finance

Retail t rade Communication services

Commercial property operators Road f reight t ransport

Structural, sheet and fabricated metal product manufacturing Advert ising and marketing services

Air transport , services to transport and storage Business administrat ive and management services

Print ing and services to print ing Paper and paper product manufacturing

Technical services Computer services

Services to f inance and insurance Publishing, recorded media manufacturing

Other business services Electricity supply

Oil and gas extract ion Sheep and beef cat t le

Accounting services Forestry

Services to agriculture, hunt ing and trapping Log sawmilling and t imber dressing

Legal services Basic metal manufacturing

M ot ion picture, radio and TV services Plast ic product manufacturing

Electricity generat ion Petroleum ref ining

Vehicle and equipment hire Other mining and quarrying

M eat processing Other industrial chemical manufacturing

Other non-metallic mineral product manufacturing Dairy catt le farming

General insurance Water and rail t ransport

Employment, security and invest igat ive services Other wood product manufacturing

Other chemical product manufacturing Electronic equipment and appliance manufacturing

Electricity transmission Non residential building construct ion

Non building construct ion Other industrial machinery and equipment manufacturing

Installat ion t rade services Other food manufacturing

Fert iliser manufacturing Personal and other community services

Textile manufacturing Dairy product manufacturing

Central government administrat ion Building complet ion services

M ixed livestock and cropping Other farming

Logging Glass and glass product and ceramic manufacturing

Pest control and cleaning services Other t ransport equipment manufacturing

Other educat ion Other hort iculture

Investors in other property Fishing

M edicinal, detergent and cosmetic manufacturing Other construct ion services

M otor vehicle and part manufacturing Gas supply

Fruit and vegetable, oil and fat, cereal and f lour manufacturing Scient if ic research

Building structure services Residential building construct ion

Road passenger t ransport Plumbing services

Furniture manufacturing Beer, wine, spirit and tobacco manufacturing

Rubber manufacturing Bars, clubs, cafes and restaurants

Services to forestry Site preparat ion services

Other leather product manufacturing Accommodat ion

Local government administrat ion services and civil defence Waste disposal, sewerage and drainage services

Bakery, sugar and confect ionery manufacturing Other sport and recreational services

Horse and dog racing Primary and secondary educat ion

Post school educat ion M edical, dental and other health services

Other manufacturing Coal mining

Clothing manufacture Poult ry processing

Libraries, museums and the arts Real estate agents

Accommodat ion for the aged Veterinary services

Life insurance Seafood processing

Ship and boat building Soft drink, cordial and syrup manufacturing

Agricultural machinery manufacturing Photographic and scient if ic equipment manufacturing

Petroleum and coal product manufacturing nec Prefabricated building manufacturing

Other fruit growing Hospitals and nursing homes

Residential property operators Oil and gas explorat ion

Child care services Other community care services

Services to mining Kiwifruit growing

Apple and pear growing Owner builders

Health insurance Bacon, ham and small good manufacturing

Pre-school educat ion Public order and safety services

Defence Lot teries, casinos and other gambling

Ownership of owner-occupied dwellings Superannuation fund operat ion

Footwear manufacture

Note: The w eighted coeff icient of variation index cannot be calculated for "w ater supply" as f inal demand is zero.


Figure 7: Backward coefficient of variation index (weighted by exports)

0 2 4 6 8 10 12

Coal mining General insurance

Other community care services Employment, security and invest igat ive services

Child care services Libraries, museums and the arts

Legal services Technical services

Services to forestry Central government administrat ion

Services to f inance and insurance Electricity generat ion Pre-school education

Business administrat ive and management services Account ing services

Accommodation for the aged Services to mining

Gas supply Prefabricated building manufacturing

Life insurance Commercial property operators

Other business services Superannuat ion fund operat ion

Horse and dog racing Furniture manufacturing

M otion picture, radio and TV services Personal and other community services

Glass and glass product and ceramic manufacturing Waste disposal, sewerage and drainage services

Road freight transport Non resident ial building construct ion

Real estate agents Scientif ic research

Health insurance Local government administrat ion services and civil defence

Advert ising and market ing services Road passenger transport

Other education Public order and safety services

Resident ial building construct ion Other food manufacturing

Pest control and cleaning services M edicinal, detergent and cosmet ic manufacturing

Electricity t ransmission Footwear manufacture

Other manufacturing Electricity supply

Computer services Other non-metallic mineral product manufacturing

M edical, dental and other health services Ship and boat building

M otor vehicle and part manufacturing Print ing and services to print ing

Bars, clubs, cafes and restaurants Oil and gas explorat ion

Other sport and recreat ional services Other wood product manufacturing

Other f ruit growing Investors in other property

Publishing, recorded media manufacturing Bakery, sugar and confect ionery manufacturing

Logging Post school education

Vehicle and equipment hire Beer, wine, spirit and tobacco manufacturing

Resident ial property operators Kiwif ruit growing

Poultry processing M ixed livestock and cropping

Petroleum and coal product manufacturing nec Agricultural machinery manufacturing

Building complet ion services Other farming

Other mining and quarrying Defence

Other hort iculture Rubber manufacturing

Apple and pear growing Photographic and scient if ic equipment manufacturing

Primary and secondary education Oil and gas extract ion

Ownership of owner-occupied dwellings Finance

Log sawmilling and t imber dressing Fruit and vegetable, oil and fat , cereal and f lour manufacturing

Veterinary services Site preparat ion services

Fishing Accommodation

Water supply Owner builders

Services to agriculture, hunting and t rapping Soft drink, cordial and syrup manufacturing

Hospitals and nursing homes Other industrial machinery and equipment manufacturing

Dairy cat t le farming Other transport equipment manufacturing

Other chemical product manufacturing Plast ic product manufacturing

Non building construct ion Sheep and beef catt le Text ile manufacturing

Other industrial chemical manufacturing Clothing manufacture

Building structure services Other construct ion services

Petroleum ref ining Plumbing services

Installat ion trade services Electronic equipment and appliance manufacturing

Lotteries, casinos and other gambling Structural, sheet and fabricated metal product manufacturing

Bacon, ham and small good manufacturing Other leather product manufacturing

Seafood processing Forestry

Basic metal manufacturing Communicat ion services Fert iliser manufacturing

Retail t rade Water and rail t ransport

Paper and paper product manufacturing M eat processing Wholesale t rade

Dairy product manufacturing Air t ransport, services to t ransport and storage


Figure 8: Forward coefficient of variation index (weighted by exports)

0 2 4 6 8 10 12


Retail t rade Communication services








Oil and gas extract ion Sheep and beef cat t le




M ot ion picture, radio and TV services Plast ic product manufacturing








Non residential building construct ion Non building construct ion

Other industrial machinery and equipment manufacturing Installat ion t rade services Other food manufacturing






Pest control and cleaning services Other t ransport equipment manufacturing



M edicinal, detergent and cosmetic manufacturing M otor vehicle and part manufacturing

Gas supply Fruit and vegetable, oil and fat, cereal and f lour manufacturing

Scient if ic research Residential building construct ion





Other leather product manufacturing Accommodat ion



Horse and dog racing Primary and secondary educat ion

Post school educat ion M edical, dental and other health services




Accommodat ion for the aged Veterinary services


Ship and boat building Soft drink, cordial and syrup manufacturing

Agricultural machinery manufacturing Photographic and scient if ic equipment manufacturing

Petroleum and coal product manufacturing nec Prefabricated building manufacturing

Other fruit growing Hospitals and nursing homes

Residential property operators Oil and gas explorat ion

Other community care services Kiwifruit growing

Apple and pear growing Bacon, ham and small good manufacturing

Pre-school educat ion Public order and safety services

Defence Lot teries, casinos and other gambling

Footwear manufacture

Note: The w eighted coeff icient of variation index cannot be calculated for "w ater supply", "child care services", "building structure services", "ow ner builders", "other construction services", "ow nership of ow ner-occupied dw ellings", "electricity transmission", "health insurance", "services to mining" and "superannuation fund operation" as exports are zero.


Figure 9: Backward concentration index for input coefficients

0 2 4 6 8 10 12

Scient if ic research Personal and other community services

Primary and secondary education Other sport and recreational services

Wholesale trade Post school education

Retail t rade Hospitals and nursing homes

Accommodat ion for the aged Public order and safety services

Central government administrat ion Beer, wine, spirit and tobacco manufacturing

Horse and dog racing Other farming

Defence Other hort iculture

Dairy catt le farming Other manufacturing

Services to agriculture, hunt ing and trapping Apple and pear growing

Other food manufacturing Legal services

Pre-school education Other construct ion services

Other business services Other fruit growing

Kiwifruit growing Business administrat ive and management services

Investors in other property Accounting services

Other educat ion Glass and glass product and ceramic manufacturing

Logging Bars, clubs, cafes and restaurants

Petroleum and coal product manufacturing nec Other mining and quarrying

Services to forestry Computer services

M ixed livestock and cropping Furniture manufacturing

Veterinary services Sheep and beef catt le

Residential building construct ion Other community care services

Site preparat ion services Plast ic product manufacturing Building complet ion services

Plumbing services Photographic and scient if ic equipment manufacturing

M edical, dental and other health services Rubber manufacturing Ship and boat building

M edicinal, detergent and cosmetic manufacturing Agricultural machinery manufacturing

Soft drink, cordial and syrup manufacturing Child care services

Vehicle and equipment hire Lotteries, casinos and other gambling

Libraries, museums and the arts Technical services

Basic metal manufacturing Electronic equipment and appliance manufacturing

Employment, security and invest igat ive services Accommodat ion

M otor vehicle and part manufacturing Road passenger t ransport Building structure services

M otion picture, radio and TV services Local government administrat ion services and civil defence

Non residential building construct ion Fishing

Forestry Services to f inance and insurance

Other industrial chemical manufacturing Clothing manufacture

Finance Fruit and vegetable, oil and fat , cereal and f lour manufacturing

Publishing, recorded media manufacturing Installat ion t rade services

Oil and gas extract ion Poult ry processing

Paper and paper product manufacturing Other industrial machinery and equipment manufacturing

Other chemical product manufacturing Oil and gas explorat ion

Pest control and cleaning services Health insurance

Advert ising and marketing services Non building construct ion

Bakery, sugar and confect ionery manufacturing Print ing and services to print ing

Other non-metallic mineral product manufacturing Residential property operators

Textile manufacturing Structural, sheet and fabricated metal product manufacturing

Air transport , services to transport and storage Coal mining

Water and rail t ransport Electricity generat ion

Road f reight t ransport Other wood product manufacturing

Owner builders Bacon, ham and small good manufacturing

Footwear manufacture Communicat ion services

Ownership of owner-occupied dwellings Gas supply

Petroleum ref ining Prefabricated building manufacturing

Other transport equipment manufacturing Services to mining Electricity supply

Waste disposal, sewerage and drainage services Superannuation fund operat ion

M eat processing Fert iliser manufacturing Electricity transmission

Commercial property operators Seafood processing

Other leather product manufacturing Life insurance

Real estate agents General insurance

Log sawmilling and t imber dressing Water supply

Dairy product manufacturing


Figure 10: Forward concentration index for input coefficients

0 2 4 6 8 10 12

Wholesale trade Retail t rade

General insurance Commercial property operators

Other business services Communicat ion services

Advert ising and marketing services Accounting services

Finance Petroleum ref ining

Other industrial machinery and equipment manufacturing Central government administrat ion

Legal services Personal and other community services

Publishing, recorded media manufacturing Vehicle and equipment hire

Print ing and services to print ing Computer services


Structural, sheet and fabricated metal product manufacturing Road f reight t ransport

Plast ic product manufacturing Investors in other property

Employment, security and invest igat ive services Primary and secondary education

Life insurance Other chemical product manufacturing Non residential building construct ion

Scient if ic research Accommodat ion

Road passenger t ransport Furniture manufacturing

Technical services Other manufacturing

Petroleum and coal product manufacturing nec M edicinal, detergent and cosmetic manufacturing

Pest control and cleaning services M ixed livestock and cropping

Other mining and quarrying Other educat ion

Post school education Rubber manufacturing

Residential building construct ion Clothing manufacture

Other hort iculture Basic metal manufacturing

Paper and paper product manufacturing Bars, clubs, cafes and restaurants

Other food manufacturing Photographic and scient if ic equipment manufacturing

Services to agriculture, hunt ing and trapping Glass and glass product and ceramic manufacturing

Electricity supply M otion picture, radio and TV services

Electricity generat ion Water and rail t ransport

Electronic equipment and appliance manufacturing Dairy product manufacturing

Horse and dog racing Other farming

Other industrial chemical manufacturing Hospitals and nursing homes

Other transport equipment manufacturing Kiwifruit growing

Oil and gas extract ion Seafood processing

Poult ry processing Building complet ion services

Apple and pear growing M otor vehicle and part manufacturing

Non building construct ion Coal mining

Other community care services Other non-metallic mineral product manufacturing

Local government administrat ion services and civil defence Textile manufacturing

Other wood product manufacturing M edical, dental and other health services

Log sawmilling and t imber dressing Services to f inance and insurance

Oil and gas explorat ion Other construct ion services

Other fruit growing Site preparat ion services

Prefabricated building manufacturing Other sport and recreational services

Soft drink, cordial and syrup manufacturing Gas supply

Fert iliser manufacturing Sheep and beef catt le

Child care services Residential property operators

Services to forestry Fruit and vegetable, oil and fat , cereal and f lour manufacturing

Logging M eat processing Services to mining

Building structure services Accommodat ion for the aged

Installat ion t rade services Ship and boat building

Beer, wine, spirit and tobacco manufacturing Bakery, sugar and confect ionery manufacturing

Veterinary services Owner builders

Plumbing services Libraries, museums and the arts

Agricultural machinery manufacturing Pre-school education

Waste disposal, sewerage and drainage services Other leather product manufacturing

Forestry Public order and safety services

Defence Footwear manufacture

Electricity transmission Health insurance

Fishing Real estate agents

Dairy catt le farming Water supply

Lotteries, casinos and other gambling Bacon, ham and small good manufacturing

Note: The forw ard concentration index for input coeff icients cannot be calculated for "ow nership of ow ner-occupied dw ellings" and "superannuation fund operation" as they have no forw ard linkages.


Figure 11: Backward concentration index for total requirement coefficients

0 2 4 6 8 10 12

Owner builders Non residential building construct ion

Investors in other property Residential building construct ion

Prefabricated building manufacturing Poult ry processing

Superannuation fund operat ion Oil and gas explorat ion

M eat processing Other wood product manufacturing

Bars, clubs, cafes and restaurants Horse and dog racing

Log sawmilling and t imber dressing Health insurance

Dairy product manufacturing Other leather product manufacturing

Furniture manufacturing Petroleum and coal product manufacturing nec

M edicinal, detergent and cosmetic manufacturing Seafood processing

Beer, wine, spirit and tobacco manufacturing Non building construct ion

Other chemical product manufacturing Soft drink, cordial and syrup manufacturing Bacon, ham and small good manufacturing

Other sport and recreational services Forestry

Other food manufacturing Footwear manufacture

Other fruit growing Local government administrat ion services and civil defence

Services to mining Life insurance

Other construct ion services M ixed livestock and cropping

Other farming Apple and pear growing Other business services

Accommodation Kiwifruit growing

Coal mining Advert ising and marketing services

Glass and glass product and ceramic manufacturing Building complet ion services

Other industrial chemical manufacturing Other hort iculture

Central government administrat ion Fruit and vegetable, oil and fat , cereal and f lour

Sheep and beef catt le Other industrial machinery and equipment manufacturing

Electronic equipment and appliance manufacturing Building structure services

Site preparat ion services Other mining and quarrying

Textile manufacturing Ship and boat building

Bakery, sugar and confect ionery manufacturing Basic metal manufacturing

Plumbing services Wholesale trade

Print ing and services to print ing Services to agriculture, hunt ing and trapping

Agricultural machinery manufacturing Dairy catt le farming

Structural, sheet and fabricated metal product manufacturing M otor vehicle and part manufacturing

Other manufacturing Business administrat ive and management services

Other community care services Photographic and scient if ic equipment manufacturing

Publishing, recorded media manufacturing Road passenger t ransport

Retail t rade Paper and paper product manufacturing

Libraries, museums and the arts Installat ion t rade services

Electricity generat ion Gas supply

Personal and other community services Services to forestry

Plast ic product manufacturing Other non-metallic mineral product manufacturing

Electricity supply Residential property operators

Other educat ion Accommodat ion for the aged

Clothing manufacture Vehicle and equipment hire

Child care services Scient if ic research

Services to f inance and insurance Lotteries, casinos and other gambling

Computer services Road f reight t ransport

Technical services Pre-school education

Logging M ot ion picture, radio and TV services

General insurance Employment, security and invest igat ive services

Rubber manufacturing Post school education

Defence Fishing

Veterinary services Oil and gas extract ion

Fert iliser manufacturing Electricity transmission

Accounting services Waste disposal, sewerage and drainage services Air transport , services to transport and storage

Ownership of owner-occupied dwellings M edical, dental and other health services

Legal services Hospitals and nursing homes

Finance Water and rail t ransport

Real estate agents Water supply

Pest control and cleaning services Commercial property operators

Petroleum ref ining Primary and secondary education Public order and safety services

Communicat ion services Other transport equipment manufacturing


Figure 12: Forward concentration index for total requirement coefficients

0 2 4 6 8 10 12


Retail t rade Communicat ion services








Oil and gas extract ion Sheep and beef catt le




M otion picture, radio and TV services Plast ic product manufacturing








Electricity transmission Non residential building construct ion

Non building construct ion Other industrial machinery and equipment manufacturing

Installat ion t rade services Other food manufacturing






Pest control and cleaning services Other transport equipment manufacturing



M edicinal, detergent and cosmetic manufacturing Other construct ion services

M otor vehicle and part manufacturing Gas supply

Fruit and vegetable, oil and fat , cereal and f lour manufacturing Scient if ic research

Building structure services Residential building construct ion





Other leather product manufacturing Accommodation



Horse and dog racing Primary and secondary education

Post school education M edical, dental and other health services




Water supply Accommodat ion for the aged

Veterinary services Life insurance

Seafood processing Ship and boat building

Soft drink, cordial and syrup manufacturing Agricultural machinery manufacturing

Photographic and scient if ic equipment manufacturing Petroleum and coal product manufacturing nec

Prefabricated building manufacturing Other fruit growing

Hospitals and nursing homes Residential property operators

Oil and gas explorat ion Child care services

Other community care services Services to mining Kiwifruit growing

Apple and pear growing Owner builders Health insurance

Bacon, ham and small good manufacturing Pre-school education

Public order and safety services Defence

Lotteries, casinos and other gambling Footwear manufacture



Figure 13: Row entropy for input coefficients

0 0.5 1 1.5 2 2.5

Other sport and recreational services Residential building construct ion Bars, clubs, cafes and restaurants

Central government administrat ion Wholesale trade

Retail t rade Horse and dog racing

Beer, wine, spirit and tobacco manufacturing Non residential building construct ion

Investors in other property Other community care services

Sheep and beef catt le Poult ry processing

Other food manufacturing Fruit and vegetable, oil and fat , cereal and f lour manufacturing

Services to agriculture, hunt ing and trapping Accommodat ion for the aged

Local government administrat ion services and civil defence Personal and other community services

Accommodation Dairy catt le farming

Building complet ion services Non building construct ion

Other educat ion Site preparat ion services

Oil and gas explorat ion Other farming

Other construct ion services Other mining and quarrying

M otor vehicle and part manufacturing Other hort iculture

Other business services Owner builders

M ixed livestock and cropping Furniture manufacturing

Other wood product manufacturing Electronic equipment and appliance manufacturing

Plumbing services Building structure services

M edicinal, detergent and cosmetic manufacturing Libraries, museums and the arts

Child care services Apple and pear growing

M eat processing Hospitals and nursing homes

Forestry Business administrat ive and management services

Installat ion t rade services Other non-metallic mineral product manufacturing

Post school education Advert ising and marketing services

Kiwifruit growing Scient if ic research

Basic metal manufacturing M edical, dental and other health services

Other industrial machinery and equipment manufacturing Structural, sheet and fabricated metal product manufacturing

Air transport , services to transport and storage Coal mining

Other industrial chemical manufacturing Print ing and services to print ing

Soft drink, cordial and syrup manufacturing Technical services

Glass and glass product and ceramic manufacturing Publishing, recorded media manufacturing

M otion picture, radio and TV services Paper and paper product manufacturing

Primary and secondary education Bakery, sugar and confect ionery manufacturing

Defence Other manufacturing Other fruit growing

Ship and boat building Oil and gas extract ion

Fishing Textile manufacturing

Road f reight t ransport Computer services

Accounting services Agricultural machinery manufacturing

Pre-school education Services to f inance and insurance

Legal services Dairy product manufacturing

Electricity generat ion Other chemical product manufacturing

Log sawmilling and t imber dressing Vehicle and equipment hire

Plast ic product manufacturing Petroleum and coal product manufacturing nec

Water and rail t ransport Road passenger t ransport

Lotteries, casinos and other gambling Services to forestry

Photographic and scient if ic equipment manufacturing Electricity supply

Gas supply Superannuation fund operat ion

Other leather product manufacturing Veterinary services

Public order and safety services Residential property operators

Clothing manufacture Prefabricated building manufacturing

Real estate agents Logging

Seafood processing Rubber manufacturing

Life insurance Finance

Employment, security and invest igat ive services Waste disposal, sewerage and drainage services

Water supply Health insurance

Pest control and cleaning services Bacon, ham and small good manufacturing

Ownership of owner-occupied dwellings Petroleum ref ining

Fert iliser manufacturing Communicat ion services

Footwear manufacture Commercial property operators

Other transport equipment manufacturing Electricity transmission

General insurance Services to mining


Figure 14: Column entropy for input coefficients


Figure 15: Row entropy for final demand weighted total requirement coefficients

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6

Non residential building construct ion Owner builders

Residential building construct ion Investors in other property

Horse and dog racing Bars, clubs, cafes and restaurants

Poult ry processing M eat processing

Other wood product manufacturing Dairy product manufacturing

Non building construct ion Log sawmilling and t imber dressing

Oil and gas explorat ion Prefabricated building manufacturing Other sport and recreational services

Beer, wine, spirit and tobacco manufacturing Sheep and beef catt le

Other food manufacturing Fruit and vegetable, oil and fat , cereal and f lour manufacturing

Forestry Building complet ion services

Furniture manufacturing Other leather product manufacturing

M edicinal, detergent and cosmetic manufacturing Local government administrat ion services and civil defence

Other chemical product manufacturing Superannuation fund operat ion

Other mining and quarrying Other construct ion services

Other farming Bacon, ham and small good manufacturing

Services to agriculture, hunt ing and trapping Central government administrat ion

Accommodation Other industrial chemical manufacturing

Other business services Petroleum and coal product manufacturing nec

M ixed livestock and cropping Site preparat ion services

Wholesale trade Building structure services

Advert ising and marketing services Glass and glass product and ceramic manufacturing

Other hort iculture Basic metal manufacturing

Structural, sheet and fabricated metal product manufacturing Dairy catt le farming

Textile manufacturing Soft drink, cordial and syrup manufacturing

Electronic equipment and appliance manufacturing Paper and paper product manufacturing

Electricity supply Other fruit growing


Retail t rade Other non-metallic mineral product manufacturing

Plumbing services Business administrat ive and management services

M otor vehicle and part manufacturing Seafood processing

Other industrial machinery and equipment manufacturing Coal mining

Apple and pear growing Personal and other community services

Health insurance Publishing, recorded media manufacturing

Kiwifruit growing Footwear manufacture

Installat ion t rade services Services to mining

Other community care services Ship and boat building

Other educat ion Libraries, museums and the arts

Electricity generat ion Plast ic product manufacturing

Other manufacturing Technical services

Gas supply Road f reight t ransport

Accommodat ion for the aged Services to f inance and insurance

Life insurance Oil and gas extract ion

Road passenger t ransport M otion picture, radio and TV services

Photographic and scient if ic equipment manufacturing Agricultural machinery manufacturing

Vehicle and equipment hire Computer services Child care services Scient if ic research

Services to forestry Fishing

Air transport , services to transport and storage Real estate agents

Fert iliser manufacturing Waste disposal, sewerage and drainage services

Logging Post school education

Employment, security and invest igat ive services Accounting services

Water and rail t ransport Legal services

Pre-school education Clothing manufacture

Residential property operators Finance

Veterinary services Rubber manufacturing

General insurance Defence

Lotteries, casinos and other gambling M edical, dental and other health services

Water supply Pest control and cleaning services

Electricity transmission Hospitals and nursing homes

Petroleum ref ining Communicat ion services

Commercial property operators Primary and secondary education

Ownership of owner-occupied dwellings Public order and safety services

Other transport equipment manufacturing


Figure 16: Column entropy for final demand weighted total requirement coefficients


Figure 17: Row entropy for export weighted total requirement coefficients

0 0.2 0.4 0.6 0.8 1 1.2 1.4

Non residential building construct ion Residential building construct ion

Investors in other property Horse and dog racing

Bars, clubs, cafes and restaurants Poult ry processing

M eat processing Owner builders

Other wood product manufacturing Log sawmilling and t imber dressing

Dairy product manufacturing Non building construct ion

Prefabricated building manufacturing Other sport and recreational services

Beer, wine, spirit and tobacco manufacturing Other food manufacturing

Sheep and beef catt le Oil and gas explorat ion

Fruit and vegetable, oil and fat , cereal and f lour manufacturing M edicinal, detergent and cosmetic manufacturing

Furniture manufacturing Forestry

Building complet ion services Other leather product manufacturing

Other chemical product manufacturing Local government administrat ion services and civil defence

Superannuation fund operat ion Accommodation

Central government administrat ion Bacon, ham and small good manufacturing

Other farming Other business services

Services to agriculture, hunt ing and trapping Other industrial chemical manufacturing

Petroleum and coal product manufacturing nec Wholesale trade

M ixed livestock and cropping Other mining and quarrying

Advert ising and marketing services Glass and glass product and ceramic manufacturing

Site preparat ion services Structural, sheet and fabricated metal product manufacturing

Soft drink, cordial and syrup manufacturing Textile manufacturing

Other hort iculture Electronic equipment and appliance manufacturing

Dairy catt le farming Basic metal manufacturing


Paper and paper product manufacturing Retail t rade

Other fruit growing Business administrat ive and management services Other non-metallic mineral product manufacturing

Seafood processing M otor vehicle and part manufacturing

Other industrial machinery and equipment manufacturing Personal and other community services

Health insurance Publishing, recorded media manufacturing

Other construct ion services Apple and pear growing

Footwear manufacture Installat ion t rade services

Kiwifruit growing Plumbing services

Ship and boat building Other educat ion

Coal mining Building structure services

Other community care services Services to mining

Libraries, museums and the arts Electricity supply

Other manufacturing Plast ic product manufacturing

Technical services Services to f inance and insurance

Road f reight t ransport Life insurance

M otion picture, radio and TV services Road passenger t ransport

Photographic and scient if ic equipment manufacturing Agricultural machinery manufacturing

Gas supply Vehicle and equipment hire

Computer services Accommodat ion for the aged

Scient if ic research Services to forestry

Oil and gas extract ion Child care services

Electricity generat ion Fishing

Air transport , services to transport and storage Real estate agents

Fert iliser manufacturing Waste disposal, sewerage and drainage services

Logging Employment, security and invest igat ive services

Post school education Accounting services

Water and rail t ransport Legal services

Clothing manufacture Residential property operators

Pre-school education Finance

Veterinary services Rubber manufacturing

General insurance Lotteries, casinos and other gambling

Defence Pest control and cleaning services

M edical, dental and other health services Water supply

Hospitals and nursing homes Petroleum ref ining

Communicat ion services Commercial property operators

Primary and secondary education Electricity transmission

Ownership of owner-occupied dwellings Other transport equipment manufacturing

Public order and safety services


Figure 18: Column entropy for export weighted total requirement coefficients


Figure 19: Row entropy for sales flows

6

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2

Accounting services Business administrat ive and management services

Other business services Employment, security and invest igat ive services

Pest control and cleaning services Print ing and services to print ing

Advert ising and marketing services Investors in other property

Commercial property operators Computer services

Legal services Vehicle and equipment hire

General insurance Finance

Road f reight t ransport Publishing, recorded media manufacturing

Technical services Structural, sheet and fabricated metal product manufacturing

Plast ic product manufacturing Communicat ion services

Glass and glass product and ceramic manufacturing Petroleum ref ining

Other chemical product manufacturing Other educat ion

Other transport equipment manufacturing M otion picture, radio and TV services

Services to f inance and insurance Services to agriculture, hunt ing and trapping

Wholesale trade Waste disposal, sewerage and drainage services

Electricity supply Other industrial chemical manufacturing

Oil and gas extract ion Electricity generat ion

Rubber manufacturing M ixed livestock and cropping

Other construct ion services Other mining and quarrying

Water and rail t ransport Petroleum and coal product manufacturing nec

Basic metal manufacturing Other hort iculture

Fert iliser manufacturing Paper and paper product manufacturing

Scient if ic research Log sawmilling and t imber dressing

Other farming Other non-metallic mineral product manufacturing

Building structure services Textile manufacturing

Building complet ion services Gas supply

Horse and dog racing Other food manufacturing

Coal mining Road passenger t ransport

Other wood product manufacturing Air transport , services to transport and storage

Water supply Other industrial machinery and equipment manufacturing

Prefabricated building manufacturing Other manufacturing

Personal and other community services Retail t rade

Installat ion t rade services Photographic and scient if ic equipment manufacturing

M edicinal, detergent and cosmetic manufacturing Electronic equipment and appliance manufacturing

Other fruit growing Poult ry processing Services to mining

Services to forestry Fruit and vegetable, oil and fat , cereal and f lour manufacturing

Plumbing services Veterinary services

Sheep and beef catt le Non residential building construct ion

Oil and gas explorat ion Libraries, museums and the arts

Forestry Site preparat ion services

Non building construct ion M otor vehicle and part manufacturing

Logging Furniture manufacturing

Bakery, sugar and confect ionery manufacturing Child care services Real estate agents

Soft drink, cordial and syrup manufacturing Other leather product manufacturing

Fishing Agricultural machinery manufacturing

Ship and boat building M eat processing

Beer, wine, spirit and tobacco manufacturing Accommodation

Other sport and recreational services Clothing manufacture

Bacon, ham and small good manufacturing Apple and pear growing

Central government administrat ion Kiwifruit growing

Residential building construct ion Dairy product manufacturing

M edical, dental and other health services Dairy catt le farming

Accommodat ion for the aged Electricity transmission


Health insurance Other community care services

Bars, clubs, cafes and restaurants Post school education

Local government administrat ion services and civil defence Primary and secondary education

Owner builders Lotteries, casinos and other gambling

Hospitals and nursing homes Residential property operators

Pre-school education Footwear manufacture

Public order and safety services Defence



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input-output framework." Massey Economic Papers.

Dixon, R (1996) "Inter-industry transactions and input-output analysis." Australian Economic Review 115 (3rd quarter): 327-336.

National Accounts Division Statistics New Zealand (2001) "New Zealand System of National Accounts: Inter-industry study 1996 interim release of tables, 126 industries." http://intranet/information/library/publications/ExplanatoryNote_InterIndustryTables.doc.

Rasmussen, P N (1956) Studies in inter-sectoral relations: North-Holland.

Soofi, A (1992) "Industry linkages, indices of variation and structure of production: An international comparison." Economic Systems Research 4 (4): 349-375.

Statistics New Zealand (2001) "Information about the inter industry study." http://www.stats.govt.nz/__4c256426000e65c9.nsf/240803edd94086ae4c256809000746f1/4f1b29f4de910b01cc256a09007fb342?OpenDocument.

Theil, H (1971) Principles of econometrics: John Wiley & Sons, Inc.

United Nations (1993) "Supply and use tables and input-output." System of National Accounts 1993.

inter industry linkages in new zealand · inter industry linkages in new zealand2 tables are...

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