Role & Performance of Input-output Coefficient Organization in the Light of International Experience and Way Forward with Reference to Industrial Competitiveness.

Abstract

Input-Output Tables (IOTs) help to describe the purchase and sale relationships between the consumers and producers in an economy (OECD, 2019). The IOT, defined simply, shows how the output of one industrial sector becomes the input of another, depicting thereby the degree of dependence of each sector in an economy on another, on the basis of product and industry classifications (Gretton, 2013)1. In fact, the input-output model is part of the national accounts of most developed countries along with Supply Use Tables (SUTs) which are often used to calculate a country’s GDP (United Nations, 2018). The SUTs describe how products (goods and services) enter an economy (either through imports or through domestic production) (the Supply Table), and the various ways in which these products are then used (household final consumption, intermediate consumption by industries for manufacturing of other products, government final consumption, exports, gross capital formation etc.) (the Use Table). They play an important role in providing a mechanism for the compilation of a single comprehensive GDP estimate comprising of all parts of production, expenditure and income (United Nations, 2018). Increasingly now, SUTs provide the base for derivation of IOTs.