SMEsandInput-OutputTablesofPakistan

PresenterIrfanAhmed,Ph.D

UniversityofMacerata,Italy

•  IntroducCon•  Input-OutputAnalysis•  Input-OutputTables•  DispersionAnalysis

Outline

Overview•  SMEsoperate inallbusiness sectorsandbolsterthe economies by generaCng employment andcontribuCngsignificantlytothecountries’GDP

(OED,2009;Javaid,2015)

•  Major key sectors are wholesale, retail, trade,restaurants and hotel business, coSon weaving,texCle,metalproducts,carpets,grainmilling,jewelryandfurnitureetc.

(BatoolandZulfiqar,2013)

IntroducCon

•  It isnecessarytodeviseprudentpoliciestoincreasethe efficiency of SMEs in terms of inputs andoutputs.

•  The input-output tables of the SMEs can beconstructed to provide the basis for the mulC-sectoralandmulC-structuralanalysis.

Objec/veoftheStudy•  This study constructs input-output tables forPakistanandperformsdispersionanalysistoidenCfythekeysectorsofPakistan’seconomy

IntroducCon

•  Input-Output (IO) analysis refers to the analyCcalframework developed by a Nobel Laureate ProfessorWassilyLeonCef

•  IO are used to invesCgate the inter-industrydependenciesinaneconomy

Input-OutputModel:x=(I–A)-1f=Lf

Wherex=vectorofindustry’soutputA=matrixofinputcoefficientsf=vectoroffinaldemandbyinsCtuConssectors

Input-OutputAnalysis

Input-OutputTables(IOT)

Basic Framework of IOT adopted from Miller and Blair (2009)

PRODUCERS AS CONSUMERS FINAL DEMAND

Agric. Mining Const. Manuf. Trade Transp. Services OtherPersonal

Consumption Expenditure

Govt. Purchases of Goods

& Services

Gross Private Domestic

Investment

Net Exports

of Goods &

Services

PRO

DU

CE

RS

Agriculture

Mining

Construction

Manufacturing

Trade

Transportation

Services

Other Industry

VAL

UE

AD

DE

D Employees Employee compensation

GROSS DOMESTIC PRODUCTCapital Profit-type income and capital consumption allowances

Government Indirect business taxes

•  ConstrucConofIOTfromUSEandMAKEtables

NotaConsused:U:UsematrixV:Makematrixq:Commoditytotaloutputx:Industrytotaloutpout;F:FinaldemandofcommodiCes;W:Valueaddedbyindustry

Input-OutputTablesforPakistan

USE-MAKE Tables Activities Commodities Final Demand Total Output

ActivitiesMake table

Vx

CommoditiesUse table

UF q

Value Added W

Total Input x' q'

•  Two matrices B and D are calculated. Matrix B iscalculatedasfollows:bij=uij/xj or

•  ThematrixDiscalculatedasfollows:dij=vij/qj or

•  Directrequirement(BD)matrixisobtainedbymulCplyingmatrixBwithmatrixD

•  Toobtainthesymmetric IOT,thevalueaddedmatrixWismulCpliedwith thematrixD thereby forming the fullsequenceofinput-outputtablescharacterizingtheinput-outputmodel.

Input-OutputTablesforPakistan

a1 a2 a3 a4 a5 a6 a7 a8 a9 a10 a11 a12 a13 a14 a15 a16 a17 a18 a19 a20 a21 a22 a23 a24 a25 a26 a27 a28 a29 a30 a31 a32 a33 a34 a35 a36 a37 a38 a39 a40 a41 a42 a43 a44 a45 a46 a47 a48 a49 a50 Final DemandROW TOTa1 Wheat 14 0 0 0 0 0 0 98 5 0 0 0 0 268 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -7 0 380a2 Rice IRRI (irr) 1/3 0 3 0 0 0 0 0 14 1 0 0 0 0 0 108 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16 0 142a3 Rice basmati (irr) 2/3 0 0 3 0 0 0 0 12 1 0 0 0 0 0 0 97 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 126a4 Cotton (irr) 0 0 0 0 0 0 0 16 1 0 0 0 2 0 0 0 0 0 170 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 190a5 Sugar cane (irr) 0 0 0 0 8 0 0 21 1 0 0 0 0 0 0 0 110 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 140a6 Other field crops 0 0 0 0 4 38 5 25 6 0 0 0 13 32 32 30 0 2 1 0 0 0 0 9 0 0 0 0 0 0 32 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 81 0 310a7 Fruits/vegetables 0 0 0 0 0 0 10 0 0 0 0 0 0 0 0 0 0 19 0 5 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 171 12 219a8 Livestock (cattle, milk) 0 0 0 0 0 0 0 32 0 0 2 0 43 0 0 0 0 17 0 0 0 0 0 11 858 0 9 0 0 0 12 0 0 0 4 115 0 0 0 0 0 0 0 0 0 0 0 0 0 0 730 3 1836a9 Livestock (poultry) 0 0 0 0 0 0 0 0 2 0 0 0 2 0 0 0 0 1 0 0 0 0 0 1 1 0 1 0 0 0 1 0 0 0 0 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 94 0 110a10 Forestry 0 0 0 0 0 0 0 0 0 0 0 11 0 0 0 0 0 0 0 0 0 0 0 0 0 17 3 0 0 0 1 0 0 0 0 7 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 40a11 Fishing 0 0 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 79 11 101a12 Mining 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 14 707 116 59 11 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 61 0 978a13 Veg Oils 0 0 0 0 0 0 0 50 3 0 0 0 38 0 0 0 0 0 0 0 0 0 0 0 0 0 34 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 274 0 399a14 Wheat Milling 0 0 0 0 0 0 0 0 0 0 0 0 0 6 5 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 992 0 1008a15 Rice Milling (Irri) 0 0 0 0 0 0 0 0 0 0 0 0 0 21 34 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 547 52 658a16 Rice Milling (Bas) 0 0 0 0 0 0 0 2 0 0 0 0 0 76 0 127 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 10 0 0 0 0 0 0 0 0 0 0 0 1 0 0 400 75 695a17 Sugar 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 41 3 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 355 6 409a18 Other food 0 0 0 0 0 0 0 4 0 0 0 0 5 0 0 0 0 5 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 4 0 0 0 0 0 1 0 0 0 0 0 0 0 0 195 24 240a19 Cotton gin (lint) 0 0 0 3 0 0 0 2 0 0 0 0 22 0 0 0 0 0 0 182 12 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 37 0 260a20 Cotton spin (yarn) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 18 146 124 18 28 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 0 2 73 420a21 Cotton weave (cloth) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 0 17 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11 286 329a22 Knitwear 0 0 0 0 0 0 0 0 0 0 0 0 0 3 3 3 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 24 103 138a23 Garments 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 1 0 0 0 1 2 0 19 9 0 0 9 0 0 0 3 0 0 1 13 2 0 0 0 0 1 0 0 0 1 0 0 2 0 0 753 83 904a24 Oth Textiles 0 0 0 0 0 0 0 0 0 0 0 0 0 7 6 6 3 0 1 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 112 81 220a25 Leather 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 0 816 61 887a26 Wood 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 20 0 0 0 7 0 19 0 6 18 1 0 0 5 0 0 0 0 0 0 0 0 0 0 47 0 125a27 Chemicals 10 35 31 29 21 33 31 11 1 3 0 26 24 0 0 0 6 2 0 8 45 1 5 23 8 0 219 102 0 0 98 5 69 0 0 51 0 0 0 21 0 0 0 0 61 0 7 9 0 0 148 35 1178a28 Fertilizer 50 22 20 28 13 15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 149a29 Cement, bricks 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 0 74 0 188 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 274a30 Petroleum refining 0 0 0 0 0 0 0 0 0 0 14 20 0 0 0 0 6 0 0 2 3 0 0 2 0 0 3 0 71 16 26 38 23 0 0 0 6 1543 8 174 15 16 0 0 2 0 2 14 39 0 109 63 2215a31 Other Manufacturing 0 0 0 0 0 0 0 0 0 1 1 7 11 5 4 4 5 2 2 47 9 0 6 9 0 1 87 0 27 23 150 12 467 0 5 35 2 250 1 9 1 5 0 0 1 1 3 13 250 4 1872 169 3501a32 Energy 4 2 1 3 1 2 2 0 0 0 2 5 2 6 6 5 1 0 1 8 5 0 1 5 0 0 5 2 10 15 38 6 0 0 2 15 0 0 0 0 1 1 0 33 2 0 1 4 10 1 85 0 293a33 Construction 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 5 17 1 0 0 0 2 1 0 0 0 0 0 9 0 0 0 0 2 33 0 1000 0 1074a34 Trade-wholesale 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0a35 Trade-retail 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2a36 Trade-other (rest, hotel) 0 0 0 0 0 0 0 0 0 0 0 62 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25 3 0 181 297 0 250 0 818a37 Transport-Rail 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 0 6a38 Transport-Road 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 304 0 304a39 Transport-Water 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 34 34a40 Transport-Air 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 245 253a41 Transport-Other (pipes) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0a42 Housing 0 0 0 0 0 0 0 0 0 0 0 0 0 2 1 1 1 0 0 0 1 0 0 0 0 0 3 0 0 0 2 1 0 17 20 26 0 11 0 0 7 0 0 67 3 0 5 6 71 5 2 0 252a43 Imputed Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 44 0 56a44 Business Services 0 0 0 0 0 0 0 0 0 0 6 0 2 6 5 5 4 4 2 13 7 1 775 5 1 0 64 0 12 6 682 8 2 7 3 0 0 0 0 1 2 20 0 66 1 0 1 12 84 9 0 0 1816a45 Health care 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 198 0 201a46 Education 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12 0 0 0 1 0 0 41 0 54a47 Personal Services 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 82 0 84a48 Other Priv Services 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 5 0 404 86 499a49 Public Services 0 0 0 0 0 0 0 0 0 0 0 153 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 0 93 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1195 0 1449a50 Finance and insurance 0 0 0 0 0 0 0 0 0 0 0 17 9 33 21 20 10 5 7 10 6 1 5 5 1 0 25 3 9 52 51 9 21 9 29 30 0 55 1 6 8 7 2 53 4 1 2 4 51 0 0 0 582

78 62 55 63 47 88 48 287 21 4 29 305 173 467 227 303 188 73 187 294 248 129 850 115 870 20 484 114 148 824 1316 139 800 42 85 431 10 1859 11 219 36 51 11 231 103 5 22 253 850 19 ##### 15060 0 0 0 0 47 49 540 30 8 18 56 88 246 210 192 135 34 56 19 26 2 20 40 9 1 410 0 17 927 547 6 10 -317 -1306 22 -6 -2377 0 -53 -271 6 0 472 1 1 4 5 64 5 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 393 03 0 0 0 0 0 0 0 0 0 0 6 10 0 0 0 0 0 0 1 1 0 0 0 0 0 4 0 0 0 88 0 0 0 1 0 0 0 0 0 0 0 0 26 0 0 0 9 0 0 0 02 1 1 1 1 1 1 11 1 0 1 5 6 0 0 0 2 4 6 5 3 0 3 3 1 0 17 0 2 14 18 2 4 2 8 6 0 10 0 1 2 1 0 13 1 0 0 2 5 3 0 083 63 56 64 48 136 98 838 52 12 48 372 277 713 437 495 325 111 249 319 278 131 873 158 880 21 915 114 167 1765 1969 147 814 -273 -1212 459 4 -508 11 167 -233 58 11 742 105 6 26 269 919 27 ##### 1506234 79 70 126 92 162 116 993 58 28 53 301 22 295 221 200 83 45 11 83 44 7 31 39 7 101 75 35 107 92 452 146 260 273 1196 359 2 812 23 86 233 194 45 658 96 45 51 85 530 555317 142 126 190 140 298 214 1831 110 40 101 673 299 1008 658 695 408 156 260 402 322 138 904 197 887 122 990 149 274 1857 2421 293 1074 0 -16 818 6 304 34 253 0 252 56 1400 201 51 77 354 1449 58263 0 0 0 0 12 5 5 0 0 0 305 100 0 0 0 1 84 0 18 7 0 0 23 0 3 188 0 0 358 1080 0 0 0 18 0 0 0 0 0 0 0 0 416 0 3 7 145 0 0380 142 126 190 140 310 219 1836 110 40 101 978 399 1008 658 695 409 240 260 420 329 138 904 220 887 125 1178 149 274 2215 3501 293 1074 0 2 818 6 304 34 253 0 252 56 1816 201 54 84 499 1449 582

VALUE ADDED AT BASIC PRICEOUTPUT AT BASIC PRICEIMPORTSTOT

TOTAL AT BASIC PRICETRCDTAXMTAXSTAXTOTAL AT PURCHASERS' PRICE

Input-OutputTablesforPakistan

•  ForwardDispersion

DispersionAnalysis

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

5.5

Petroleu

mre

fining

Chem

icals

Busin

essS

ervices

OtherM

anufacturin

gMining

Financeandinsurance

Housing

Livestock(caS

le,m

ilk)

CoSon

spin(yarn)

CoSon

(irr)

PublicServices

Trade-othe

r(rest,hotel)

CoSon

gin(lint)

FerClizer

Energy

Garm

ents

Otherfieldcrop

sWoo

dWhe

at

ConstrucCo

nSugarcane(irr)

VegOils

RiceM

illing(Bas)

Cemen

t,bricks

Forestry

RicebasmaC

(irr)2

/3

Sugar

RiceIR

RI(irr)1

/3

Fruits/vegetables

Otherfo

od

CoSon

weave(cloth)

RiceM

illing(Irri)

Fishing

Livestock(pou

ltry)

OthTexCles

Person

alServices

EducaC

on

Impu

tedRe

nt

Knitw

ear

Whe

atM

illing

OtherPriv

Services

Leathe

rHe

althcare

Trade-who

lesale

Trade-retail

Transport-Ra

ilTransport-Ro

ad

Transport-Water

Transport-Air

Transport-Other(p

ipes)

•  BackwardDispersion

DispersionAnalysis

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

5.5

Transport-Ro

ad

Trade-retail

Trade-who

lesale

Transport-Other(p

ipes)

Transport-Ra

ilKn

itwear

CoSon

weave(cloth)

CoSon

spin(yarn)

Transport-Air

FerClizer

Leathe

rCo

nstrucCo

nGa

rmen

ts

CoSon

gin(lint)

OthTexCles

PublicServices

OtherPriv

Services

Healthcare

Cemen

t,bricks

RicebasmaC

(irr)2

/3

RiceIR

RI(irr)1

/3

Trade-othe

r(rest,hotel)

RiceM

illing(Bas)

Sugar

Energy

Whe

atM

illing

VegOils

CoSon

(irr)

Chem

icals

Sugarcane(irr)

RiceM

illing(Irri)

Petroleu

mre

fining

Mining

OtherM

anufacturin

gTransport-Water

Otherfieldcrop

sFishing

Otherfo

od

Whe

at

Impu

tedRe

nt

Person

alServices

Fruits/vegetables

Livestock(pou

ltry)

Housing

Livestock(caS

le,m

ilk)

Woo

dForestry

Busin

essS

ervices

EducaC

on

Financeandinsurance

•  ThisstudypresentstheconstrucConofInput-Outputtables(IOT)forPakistan.

•  Dispersion analysis is conducted to idenCfythekeysectorsoftheeconomy.

•  The sectors in IOT can be disaggregated intosmall, medium and large enterprises topresentthe inter-linkagesofSMEswithotherlargescalesectorsoftheeconomy.

DispersionAnalysis

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