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Import matrices

Import matrices. THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION. Import matrices. The import matrix shows the use of imports by industry as intermediate consumption, and final demand

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Import matrices

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  1. Import matrices THE CONTRACTOR ISACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

  2. Import matrices • The import matrix shows the use of imports by industry as intermediate consumption, and final demand • Imports and exports are becoming relatively larger in modern global economies • Industry, through large multinational enterprises has production functions across national borders

  3. Import matrices • The Use table for imports as a separate measure of inputs to domestic industry is not necessary for balancing supply and use, and generating a consistent set of national accounts • Commodity flow analysis of detailed imported products allows a more confident allocation to uses by specific industry and final demand category

  4. Import matrices • Compiling the Use table for imports is not easy! • The allocation of imports to specific industries and final demand categories is a mix of total (imports plus domestic output) use and commodity flow allocation using detailed international trade headings to help in the allocation

  5. Allocating imports - Measurement challenges • The Intrastat reporting system reflects imports by enterprise, not homogeneous KAUs • Imports are recorded at time of entry, not time of use • Imported goods can be for intermediate consumption or for capital formation

  6. Allocating imports - Measurement challenges • Many imports are through importing agents, and dealers – not the final use industry or category of final demand • The above issues are compounded for imports of goods from outside the EU, where there is no indication of possible use category apart from the CN description clue

  7. Allocating Imports - measurement challenges • Imported services are even more difficult to handle! • They are an increasing part of total imports • Again, some by their description can be allocated to a use category – gambling services from abroad are presumably only part of Household final consumption expenditure

  8. Import matrices • Having produced a use table for imports, it is then possible to subtract this table from the aggregate use table to reveal the use of domestic output to industries and final demand categories, at basic prices • The two separate use matrices of intermediate consumption of imports and domestic output can then be used in further input-output analyses

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