EUROPEAN COMMISSION
EUROSTAT
Directorate C: National Accounts, Prices and Key Indicators
Unit C-2: National and Regional Accounts Production. Balance of Payments
Supply, Use and Input-Output tables Team – Isabelle Rémond-Tiedrez
Consolidated European Supply, Use and Input-Output
Tables for 2008 and 20091
1.
INTRODUCTION
Under the European System of National and Regional Accounts (ESA95), EU Member
States transmit annual Supply and Use Tables (SUT) and five-yearly Input-Output Tables
(IOT) to Eurostat2. The supply and use tables (and the five yearly tables) are submitted
only 36 months after the end of the reference period.
In August 2010, the legal act governing the data transmission of national accounts data
(transmission program) was amended to introduce the new classification of activities and
products (NACE Rev 2 and CPA2008) in line with the new ISIC 4. The new
requirements for the supply and use framework were implemented for the first time by
Member States for the transmission of the reference year 2008. No revised back data are
required for supply, use and input-output tables. Eurostat has to face a break in the time
series, as the European tables have been consolidated from 2000 to 2007 in the old
classifications (NACE Rev 1.1 and CPA 2002) and now from 2008 onwards in the new
NACE Rev 2 and CPA 2008 classifications.
For each Member State, in a close collaboration with the Joint Research Centre's IPTS of
the European Commission (JRC-IPTS), SUTs at basic prices were estimated with the
available SUTs (in basic/purchaser’s prices) and in part with confidential auxiliary
valuation data. Because of the implementation of the new classifications in National
Accounts, many countries encountered extra delays in the compilation of SUTs and the
transmission of the data to Eurostat. Therefore Eurostat had less available data for 2008
compared to previous reference years and furthermore no back data to refer to for the
estimation process. The data availability question will be the topic of section 2.
Due to confidentiality reasons the SUTs at basic prices are only published for the
aggregated EU27 and euro area. The SUTs for the individual Member States were
aggregated to EU27 and euro area SUTs. For each Member State, the main steps include
the subdivision of the use table into an import use table and a domestic use table, and
subsequently into an intra-EU import use table and an extra-EU import use table.
Each of the domestic use, intra-EU import use, and extra EU import use tables were
aggregated across countries to a EU27 total. A confrontation and rebalancing took place
of the intra-EU import use total with the intra EU export supply totals - which in theory
should be identical apart from valuation differences, but in practice are not, due to the
fact that the data are collected and reported independently by different countries and
hence may be subject to statistical differences.
1
Disclaimer: The views expressed in this paper are those of the authors and should not be attributed to the European
Commission or its services.
2
One table related to the European Union is compiled (the European Union is composed of 27 Member States);
another table for the euro area is compiled (the euro area is composed of 17 Member States with the same
currency, the Euro). The euro area Member States are part of the European Union. The Extra-euro area columns
consider all the non-Euro currency countries, regardless of its membership in the European Union.
The relatively small intra EU export/import differences were moved to the rest of world.
The intra-EU import use and intra-EU export supply data were now identical and
cancelled each other out. The aggregated EU27 SUT now could be created by
aggregating the individual country domestic SUTs and extra-EU import use and export
supply tables. In a final step, the aggregated SUTs were transformed into symmetric
product-by-product Input-Output Tables (IOTs).
The steps of consolidation and their analysis will be elaborated in section 3.
The input-output tables at European level form the basis for new analysis and various
models in macroeconomics. As a standard input-output technique, the European InputOutput Tables were used for the calculation of specific results by applying the Leontief
quantity model. For example, Eurostat publishes Air Emissions Accounts recording
emissions of greenhouse gases and air pollutants in the same format which is used for
SUT and IOT (i.e. in a breakdown by industries and households). The combination of all
this data in the form of Environmentally Extended Input-Output Tables (EE IOT)
provides a powerful analytical instrument to policy applications.
The section 4 will present the dissemination of the European data.
2.
AVAILABILITY OF NATIONAL TABLES
Currently the official transmission programme (ESA 95) includes the following tables
with a transmission before 36 months (3 years) after the end of the reference period:

On an annual basis
a. Supply table at basic prices, including a transformation into purchasers’
prices (SUP)
b. Use table at purchasers’ prices (USEpp)

On a five-yearly basis
c. Input-output table at basic prices (IOTtotal)
d. Input-output table of domestic output (IOTdom)
e. Input-Output table of imports (IOTimp)
On a voluntary basis are transmitted by some Member States six additional tables3:
f.
g.
h.
i.
j.
Use table at basic prices (USEbp)
Use table of domestic output at basic prices (USEdombp)
Use table of imports at basic prices (USEimpbp)
Trade and transport margins (TTM)
Taxes less subsidies on products (TLS)
The supply table shows the supply of 64 goods and services 4, both domestic and
imported, by type of supplier in basic prices, while the use table shows the use of 64
goods and services by type of use in purchaser prices, i.e. as intermediate use by
industries and final use consumption expenditures, gross capital formation, and exports.
The use table also contains the components of value added by industry, i.e. compensation
of employees, other taxes less subsidies on production, and gross operating surplus.
3
4
Under the new transmission program 2010 implementing SNA2008 (ESA2010), the tables USEbp,
USEdombp, USEimpbp, TTM and TLS will be transmitted at current prices every 5 years. The first
data transmission of those tables is expected by end of 2014, but many Member States have asked for
derogations and will transmit the tables later.
See Annex 1 with the list of activities and products in NACE Rev 2 and CPA 2008
2
Combining individual country SUT to a SUT for the EU27 is not trivial. As indicated, a
first issue is that the use tables collected by Eurostat are not available in the required
price concept (basic price). Next to this, the SUT of individual countries include imports
and exports – which need to be separated from domestic supply and use.
Furthermore, the imports and exports reported by each EU member state are totals –they
do not distinguish between member states from which the products are imported or to
which they are exported. This implies two problems: double counting of re-exports and
the fact that intra-EU/EA trade should be allocated to the domestic table of the EU/EA.
Finally, there are some other problems, such as that some EU member states have been
unable to transmit SUT within the deadlines of T + 36 months after the reference period.
The goal is to compile consolidated European supply and use tables at basic prices, as
well as the corresponding input-output table at basic prices. Therefore the aim of the
estimation process is to obtain the following full set of tables for each Member State:








a) Supply table at basic prices (SUPbp);
f) Use table at basic prices (USEbp);
g) Use table at basic prices for domestic output (USEdombp);
h) Use table at basic prices for imports (USEimpbp);
k) Use table at basic prices for imports intra EU and/or intra EA;
l) Use table at basic prices for imports extra EU/extra EA;
i) Trade and transport margins table;
j) Taxes less subsidies on products table.
In the project different cases are distinguished depending on the data availability. The
JRC-IPTS and Eurostat have established good practices (see Rueda-Cantuche et al, 2013)
on the methodology to apply on national tables depending on the data availability.
The data situations can be summarised (see last column of Tables 1 and 2) as follows:





E: excellent data situation where tables (a, b, c, d, e) and additional tables (f, g, h,
i, j) have been transmitted
G: good data situation (a, b, c, d, e)
S: satisfactory data situation (a, b) and tables (c, d, e) for another year
I: incomplete data situation (a, b)
N: no data
a. Reference year 2008
The supply and use tables for the reference year 2008 were required by the national
accounts transmission program before the end of 2011. Because of the changeover of
classifications, many countries could not respect the deadline and tables were transmitted
late during 2012.
Eurostat decided anyhow to consolidate national tables by September 2012 and the
dissemination of European tables was realised on October 8th 2012. At that date, eight
countries had not yet transmitted any data related to supply and use tables.
With the consolidation process of the reference year 2009, the European consolidated
tables have been recompiled for the year 2008 as every Member State had eventually sent
the required data for the reference year 2008 by the end of August 2013.
3
Table 1: Data availability of tables for the reference year 2008
USE
pp
IO
bp
(a)
(b)
AT
x
x
BE
x
x
CZ
x
x
x
x
x
x
x
E
DE
x
x
x
x
x
x
x
E
EE
x
x
x
x
x
x
x
E
ES
x
x
x
x
x
x
x
E
FI
x
x
x
x
x
x
x
x
x
x
E
FR
x
x
x
x
x
x
x
x
EL
x
x
HU
x
x
IE
x
x
LT
x
x
IT
x
x
NL
x
x
x
x
x
G
PT
x
x
x
x
x
G
RO
x
x
x
x
x
SE
x
x
x
x
x
SI
x
x
SK
x
x
I
UK
x
x
I
BG
x
x
I
CY
x
x
I
DK
x
x
I
LU
x
x
I
LV
x
x
I
MT
x
x
I
PL
x
x
I
SUP
IO
dom
bp
IO
imp
bp)
(c)
(d)
(e)
x
x
x
USE
bp
USE
dom
bp
USE
imp
bp
TTM
TLS
(f)
(g)
(h)
(i)
(j)
x
x
x
x
x
Situation
E
I
x
x
x
E
G
x
x
x
x
x
x
x
x
E
x
x
x
x
x
E
x
x
x
x
x
E
I
x
x
x
x
x
x
x
x
x
x
E
G
E
Note: Italics indicate tables received after the first consolidation (September 2012).
They are considered for the reconsolidation exercise disseminated in September 2013.
In October 2012, the coverage of the supply and use tables corresponded to 86% of the
EU GDP, and to 88% of the euro area.
b. Reference year 2009
The deadline for transmitting year 2009 tables was December 31st 2012. At the time of
the dissemination of European tables, Eurostat has received data from 26 Member States
of the EU27.
4
Table 2: Data availability of tables for the reference year 2009
SUP
USE
pp
IO
bp
IO
dom
bp
IO
imp
bp
USE
bp
USE
dom
bp
USE
imp
bp
TTM
TLS
Situation
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
AT
x
x
x
x
x
x
x
x
x
x
BE
x
x
I
BG
x
x
I
CY
x
x
CZ
x
x
DE
x
DK
x
EE
E
I
x
x
x
x
x
x
x
x
E
x
x
x
x
x
x
E
x
x
x
x
x
x
E
x
x
x
x
x
x
x
E
ES
x
x
x
x
x
x
x
E
FI
x
x
x
x
x
x
x
x
x
x
E
FR
x
x
x
x
x
x
x
x
E
EL
x
x
HU
x
x
IE
x
x
IT
x
x
LT
x
x
I
LU
x
x
I
LV
x
x
I
I
x
x
x
x
x
x
x
x
E
x
x
x
x
x
E
x
x
x
x
x
E
N
MT
NL
x
x
PL
x
x
x
x
x
G
PT
x
x
RO
x
x
I
SE
x
x
I
SI
x
x
I
SK
x
x
UK
x
x
I
x
x
x
x
x
x
x
x
x
E
x
E
I
c. Estimation process
To compile the European tables, the tables a, b, f, g, h, k, l are needed for each Member
State. How is the estimation process for the different data situation?
1. The data situation is “Excellent”
For 2008 and 2009 the number of countries in this data situation is quite stable with
11 and 13 countries respectively. The countries that transmitted all necessary tables
in 2008 are more or less the same as in 2009.
For the "Excellent" cases, Member States provide all necessary tables from a to j
(see section 2), and Eurostat processed only validation steps.
1. The validation steps consist of intra tables’ control: the sum of details is
checked against sub-totals. For example, the sum of supply of 64 products by
one industry should be equal to the total supply of the same industry. The
5
control of sum of components with sub-totals is realised for each column and
row of the supply and use tables at basic prices, as well as for the valuation
matrices (trade and transport margins TTM and taxes less subsidies TLS).
2. There are also validations realised between tables: the totals of supply
output should equal the use output by products and by industries. Checks
between the symmetric input-output tables and the supply and uses tables are
done as well. Overall there are around 50 checks when the tables a, b, c, d, e
are available.
3. A last check consists of comparing data provided in the SUIOT framework
with macro data of other parts of the national accounts transmission program.
For example the gross value added total of one country is transmitted at T+65
days. The supply and use tables are usually benchmarked to macro
aggregates, but in some cases countries revise the macro data without
revising the supply and use tables. Eurostat is then asking the country for
explanation of the difference and receives in some cases an updated
transmission of SUT.
2. “Good” data situation
For the “Good” data situation, the tables a, b and c, d, e (see section 2) are
available. With this data situation, Eurostat assumed that the symmetric inputoutput table has been constructed using the product technology assumption (see
Eurostat 2008 Manual of Supply, Use and Input-Output Tables, pp.347-357). The
use table at basic prices (f) is directly derived from the supply table and the
symmetric input-output table (see Eurostat 2008 Manual on p. 352). This approach
provides always non-negative values in the use table at basic prices.
In many cases of this data situation for the year 2008 and 2009, the procedure has
been amended as the transformation of the IO table for domestic production by the
reversed commodity technology model was not consistent with available data.
Therefore the reverse modelling was only used for the use table at basic prices of
imports (h) and the use table at basic prices (f). The use table at basic prices for
domestic production (g) is calculated by the difference of (f) and (h).
This procedure may not be successful as the assumption that the symmetric IOT
was constructed with the product technology assumption is not always realistic. In
many cases Member States adjust manually the symmetric IOT to avoid negatives.
Those manual adjustments cannot be captured by reversing the IOT into the use
table at basic prices and create discrepancies within the framework of SUT.
When this procedure does not give satisfactory results, the symmetric IO tables are
not taken into consideration and the data situation is considered as “incomplete”.
3. “Satisfactory” data situation
This data situation is composed of symmetric IO tables from a previous year in
addition to the regular supply and use tables (a and b).
This data situation did not occur in 2008 and 2009 because of the new
classification implemented for the year 2008. Therefore no back data was available
in 2008 with the same classification. The same applies for the year 2009.
4. “Incomplete” data situation
In 2009 the number of incomplete cases was observed for 14 Member States while
it was a relatively small number for 2008. For the “incomplete” cases, Member
States transmitted the supply table at basic prices with the transformation to
6
purchaser’s prices (a) and the use table at purchaser’s prices (b). The two tables (a)
and (b) are mandatory tables to be transmitted according to the national accounts
transmission program.
In this data situation, the valuation matrices (i) and (j) (see 4.1) must be estimated
as well as the use table of domestic output at basic prices (g) and the use table of
imports at basic prices (h).
4.1. Estimation of valuation matrices: firstly, the taxes less subsidies on products
The first matrix to be derived is the matrix for taxes less subsidies (j).
From the transmitted supply table a vector of taxes less subsidies by product is available.
The ideal case is to have a TLS matrix from a previous year (Rueda-Cantuche et al.
2013). The structure of the previous TLS matrix will then be applied for the current year.
This approach could be realised for the year 2009, but not for the year 2008 as this year
was the first year with data in NACE Rev 2/CPA2008 and no back data available.
For the reference year 2009, the valuation matrices of the previous reference year 2008
were available for two countries.
If no previous year data is available, the TLS structure of a neighbour country can be
used.
The share of final consumption was fixed over total taxes (using previous year share or
similar country's share in NACE Rev 1.1). So was the share of exports. Then the total
TLS of the final consumption was distributed row wise along the columns using the share
of the use table at purchases’ prices. Some adjustments were made as for example the
TLS attributed to the product coke and refined petroleum was very low, previous year
share was applied for this product. As the correspondence between the classifications of
products CPA 2002 and CPA 2008 is not one to one, the structure of previous years TLS
in CPA 2008 and NACE Rev 2 cannot be deduced from a TLS matrix in the old
classifications CPA 2002 and NACE Rev 1.1. But at least some tangible parts remain:
the taxes less subsidies on products are mainly due to VAT on products paid by final
consumers.
4.2. Estimation of valuation matrices: secondly trade and transport margins
The vector of trade and transport margins per product is available in the transmitted
supply table.
The TTM matrix is derived by allocating column wise the total amounts per product
provided by the supply table, using the structure of the use table at purchasers’ prices.
This applies on the products for which a trade or a transport margin has been realised by
the trader or transporter. Those amounts are positively recorded.
But to compensate the positive entries, the trade and transport products lines contains
negative values, balancing column wise the positive entries by industry. In our NACE
Rev 2/ CPA 2008 classifications trade and transport products are: G45 Wholesale and
retail trade and repair of motor vehicles and motorcycles; G46 Wholesale trade, except of
motor vehicles and motorcycles; G47 Retail trade, except of motor vehicles and
motorcycles; H49 Land transport and transport via pipelines; H50 Water transport; H51
Air transport; H52 Warehousing and support activities for transportation.
From the supply vector, we have the total distribution of the negative entries.
Let’s take an example:
In the supply vector of trade and transport margins, we have:
7
Table 3: Products with potential trade and transport margins (figures just illustrative
purposes)
Trade and transport
margins
Share
-50000
50%
-20000
20%
-10000
10%
CPA_H49
Wholesale and retail trade and repair services of motor
vehicles and motorcycles
Wholesale trade services, except of motor vehicles and
motorcycles
Retail trade services, except of motor vehicles and
motorcycles
Land transport services and transport services via pipelines
-10000
10%
CPA_H50
Water transport services
-2000
2%
CPA_H51
Air transport services
-8000
8%
CPA_H52
Warehousing and support services for transportation
0
0%
CPA_G45
CPA_G46
CPA_G47
Once the TTM total of each row has been proportionally distributed among industries
and final demand components to the use table at purchaser’s prices, the rows
corresponding to the trade and transport products above are calculated by industry using
the same distribution, in the example above 50%, 20%, 10%, 10%, 2% and 8%.
In the European Union not every Member State does have information on trade and
transport margins. Therefore from one country to another the list of products to which a
margin is associated may be different compared to table 3.
4.3. Use table at basic prices as a result
The relationship between the different prices can be summarized as follows:
Purchaser's prices (excluding any deductible VAT)
- trade and transport margins
- non-deductible VAT
- other taxes on products
+ subsidies on products
= Basic prices
From the previous steps 1 and 2 the trade and transport margins (TTM) and the taxes less
subsidies on products (TLS) are calculated. Non-deductible VA taxes plus other taxes on
products minus subsidies on products correspond to TLS.
From the regular transmission the use table at purchaser’s prices is available. The use
table at basic prices is calculated by deducting the matrices of TTM and TLS.
4.4. Use table at basic prices for imports
The supply table provides the total imports by product as a vector.
For the distinction between domestic and import uses, the table of use of imports results
from the distribution column wise of the imports totals, using the structure of the use
table at basic prices.
8
The use table at basic prices (USEdombp) for domestic production is calculated by
difference of the use table at basic prices (USEbp) and the use table at basic prices of
imports (USEimpbp).
4.5. Use table at basic prices for imports intra EU (intra EA)
Regarding the split of exports and imports for the European Union (EU) between intra
EU/extra EU and for the euro area (EA) between intra EA/extra EA, Eurostat uses the
external trade statistics for goods and the balance of payments statistics for services.
In those two data sets, the share of exports intra EU over the total exports (respectively
imports) and the share of exports intra EA over exports intra EU (respectively imports)
are calculated and then assigned to the total amount of exports/imports for each product
available in the supply and use tables delivered by Member States.
In Annex 2 the correspondence between CPA2008 and the classification used in the
supply and use tables and the balance of payments statistics is presented.
This step will have to be executed for each estimated country.
5. “Non-available” data situation
For the year 2008 the first disseminated European consolidated tables were compiled in
October 2012 with eight countries missing. Up to 2011 the Member States had to
transmit supply and use tables according to the classifications NACE Rev 1.1 and CPA
2002 for reference year 2007 and before. Therefore no previous year data was available
for those eight countries to estimate 2008 year date in NACE Rev 2 and CPA 2008. In
collaboration with the JRC-IPTS, Eurostat has put in place a procedure (Figure 1) for the
conversion of the NACE Rev 1.1 2007 tables into NACE Rev 2 tables using bridge tables
based on detailed available information. The only available information was
correspondence tables (NACE1/CPA2002 to NACE2/CPA2008) beyond the restricted 2digit-level classification of the Eurostat transmission programme provided by the Czech
Statistical Office for the reference year 2007. This allowed building a bridge table.
9
Figure 1: procedure of conversion of the NACE rev 1.1 2007 tables into NACE Rev 2
Supply, Use dom,
use imp basic prices
2007
NACE Rev 1.1
Bridge tables
Bridge tables
CPA1*CPA2
NACE 1*NACE 2
Balanced SUT 2007,
NACE Rev 2
2008 Macro data
Euro Method
Balanced SUT 2008,
NACE Rev 2
SUT 2008
Benchmarked to
macro aggregates
The Euro method (see Eurostat Manual paragraph 14.4.4 on page 461) is applied as an
updating method in order to use previous year SUTs of 2007 converted in NACE Rev 2 /
CPA 2008 to make a projection for the year 20085 in NACE Rev 2 / CPA2 2008.
At the last step of the estimation, it was necessary to benchmark the breakdown of valueadded for the 64 industries as a result of the conversion to already transmitted macro
data.
For the reference year 2009, the table for Malta has been projected from 2008 year in
NACE Rev 2 / CPA 2008. It should be kept in mind that the 2008 tables for Malta have
been compiled with the conversion process (explained in Figure 1).
3.
CONSOLIDATION STEPS
The output of the steps described in section 2 is a simple aggregation of the national
supply and use tables at basic prices for each year. This simple aggregation was done for
the European Union and the euro area.
The simple aggregation already reflects the macro aggregates for the European Union
and euro area (see Table 4), but a final benchmark is realised after the consolidation
steps.
5
There are many updating methods in the literature (see, for instance, Temurshoev, Yamano and Webb,
2011) and their full assessment would fall beyond the scope of this paper.
10
Table 4: Deviations of aggregated tables from macro data (2009, mio. Eur)
Main GDP components
European Union 27 Member states
Final consumption
Gross capital formation
Value added
Taxes
less
subsidies
on
products
GDP
euro area 17 Member states
Final consumption
Gross capital formation
Value added
Taxes
less
subsidies
on
products
GDP
ESA sector accounts
Simple sum of SUTs
Difference
9 500 271
2 152 403
10 571 576
1 200 221
11 771 798
9 481 052
2 149 986
10 555 998
1 196 856
11 752 854
0.2%
0.1%
0.1%
0.3%
0.2%
7 122 468
1 681 586
8 028 425
893 869
8 922 294
7 122 849
1 680 040
8 027 935
891 087
8 919 022
-0%
0.1%
0%
0%
0%
The simply-aggregated 27 SUTs can be graphically represented below in Figure 3, as a
sum of all domestic use tables, all intra-EU import tables, and all extra-EU import tables,
including the respective final use categories. Note that also the exports are split into intraEU and extra-EU exports.
Figure 3: Structure of the aggregated EU tables
Domestic intermediate use
Intra-EU import use
Extra-Eu import use
Taxes less subsidies on
products
Domestic final demand
Intra-EU
import
final
demand
Extra-EU final demand
Intra-EU
exports
Extra-EU
exports
1
3
5
2
4
6
Where numbers in the last two columns correspond to exports:
1: exports to intra-EU countries; 2: exports to extra-EU countries
3: re-exports from intra-EU to intra-EU; 4: re-exports from intra-EU to extra-EU
5: re-exports from extra-EU to intra-EU;6: re-exports from extra-EU to extra-EU
Due to the change in geographical detail from individual European member countries to
the European level, the former international trade flows between member countries now
have to be interpreted as domestic transactions of the European economy. At this point
the intra-EU imports are still represented separately, although at the level of the entire
European economy these flows are now domestic transactions. The same holds for intraEU exports, column 1 in Figure 3. In order to merge the intra-EU trade flows with the
domestic transactions table with the sum of purely domestic transactions a procedure
consisting of several steps has to be undertaken. The main objective is to balance the
intra-EU import table with the information on intra-EU exports. The procedure allows the
table to be merged without violating the accounting identities that have to be observed
for supply-use frameworks. The fact that the reported intra-EU imports per product do
not match the reported intra-EU exports for each product is due to a number of issues
11
(different price valuation, methodological
confidentiality, see Bouwmeester et al, 2012).
differences,
time
lags,
statistical
a. Several steps of trade adjustments
Step1: adjust for the taxes less subsidies on intra-EU imports
Since intra-EU imports are valued at c.i.f. prices (cost-insurance-freight), they include
among others the taxes less subsidies on products (TLS) that are associated with these
transactions. The first step will be to reallocate (deduct) the TLS from the intra-EU
import matrix.
The value recorded as total taxes less subsidies on intra-EU exports (in the row of taxes
less subsidies and the third column of intra-EU exports) is distributed over the exporting
EU industries using the share of each industries’ taxes less subsidies in total taxes less
subsidies on intermediate demand and final demand excluding exports. The value is
added to the respective industry and final demand category in the row of taxes less
subsidies.
To keep total output by industry unchanged the values of the taxes less subsidies
assigned to each industry are deducted from their intra-EU imports in the same
proportion as their intermediate import input structure and final use structure per final
demand category.
For the year 2008, the reallocation represents 23 117 million €, 1.8% of total TLS; for the
year 2009, it represents 10 363 million €, 0.9% of total TLS.
Step 2: correct for trade flows imported from within the EU and re-exported
outside the EU
Consider the case in which Austria re-exports Italian shoes to Switzerland (outside the
EU). Because Italy does not necessarily know what Austria is doing with its shoes, in this
case, Italy wrongly records this transaction as an intra-EU export, while it should have
been reported as an extra-EU export. When constructing an inter-country SUT the
necessary correction cannot be made at the individual country level, because the origin or
destination of the re-exports is not recorded in the individual country SUT. At the EU
level this correction is possible, because the sum of all individual country re-exports
matches the level of information needed to do this correction.
In total for both 2008 and 2009 consolidations, these corrections made up to an increase
in extra-EU exports of 11% (see the distribution in Table 5). The industries with the
largest changes are: electricity, gas, steam and air-conditioning, mining and quarrying,
computer, electronic and optical products.
Table 5: Distribution of change by industries in Step 2
12
16
12
8
4
0
2009
2008
Step3: correct for trade flows imported from outside the EU and re-exported within
the EU
Consider the reverse case of the re-export of Swiss chocolate by Spain to Portugal;
Portugal will wrongly record this transaction as an intra-EU import, since it does not
"know" that Spain has imported these foods from Switzerland. Spain will report this
transaction in block 5 (Figure 3). The correction therefore entails reducing the reported
imports from EU countries and increasing the reported imports from countries outside the
EU.
The values in the column are proportionally distributed over the values of the intra-EU
import table. For each import value defined by product and industry, that products’
import share in total imports (intermediate imports plus final demand imports except reexports) multiplied by the re-export value is subtracted from the intra-EU import value
and added to the extra-EU import value. This implies decreasing the intra-EU import
values and increasing the extra-EU import values by exactly the same value per product,
per importing industry or final demand category.
The total imports from extra-EU increased by 13% (see distribution in Figure 4), while
the imports from intra-EU were reduced by 9%. The maximum adjustment has been of
30% for the industry of Manufacture of computer, electronic and optical products.
Step 4: correct for double counting intra-EU trade flows that are re-exported
within the EU
Those trade flows correspond to block 3 (Figure 3). An example would be Hungary
importing Spanish shoes and re-exporting them to Poland. Both the imports and exports
are registered already by respectively Poland and Spain. But Hungary would incorporate
the flow as well as imports and re-exports. Therefore, there would be a double counting.
The data of block 3 is simply deleted.
Step 5: rescale all intra-EU imports such that their total equals that of the intraEU exports
In this step intra-EU imports are scaled to intra-EU exports. The aim is to balance intraEU imports with the information on intra-EU exports (block 1 in Figure 3), as each trade
flow should be reported by two countries: the one exporting and the one importing. As
13
the two values do not match, there is an overall factor for 2008 of 8% higher exports than
imports.
To achieve the rescaling, in the intra-EU import table, each intra-EU import value is
multiplied by the sum of the intra-EU export values, divided by the overall sum of the
intra-EU import table, including intermediate and final demand categories, without reexports.
The difference between the original intra-EU import values and the rescaled intra-EU
import values is added to the corresponding value in the extra-EU import table (per
product imported and importing industry or final demand category).
Total imports intra EU were increased by 7% to match the exports intra EU.
Step 6: balancing the intra-EU import table with the intra-EU export column using
GRAS
A GRAS (Junius and Oosterhaven, 2003) procedure is then applied to balance the intraEU exports6.
By using the export values in basic prices as row constraint in the GRAS procedure, the
trade and transport margins included in the import c.i.f. values are effectively
redistributed to the rows which the corresponding services. The intra-EU export column
1, used as constraint in the GRAS procedure, is in basic prices. Therefore, the balanced
intra-EU import use table is also in basic prices.
Step 7: aggregation of the domestic use table and the balanced intra-EU import
table
In the last step the balanced intra-EU trade flows are added to the table with the simple
aggregation of the domestic EU flows. Each value of the balanced intra-EU import table
(per product and sector or final demand category except exports) is added to its
corresponding value in the EU domestic table.
The same steps apply for the consolidation into the euro area tables.
b. Benchmarking to macro aggregates
GDP for the EU is not altered by the method. The expenditure approach to calculate GDP
entails summing household, non-profit institution and government consumption, gross
capital formation (investment) and exports less imports. In the procedure, exports are
decreased by the amount of intra-EU exports and imports are decreased by the amount of
intra-EU imports, because these flows are merged with the domestic transactions. As
both exports and imports decrease by the same amount, the net values of exports less
imports do not change.
The last step corresponds to adjustments to match the Use table for European Union to
the macro aggregated data available7.
At national level, the data are not always consistent between the supply and use tables
and the sector accounts and national accounts data. Many countries do benchmark the
6
The generalized RAS method is used to balance the intra-EU import totals with the intra-EU export totals
per product. It is a bi-proportional adjustment method very similar to RAS with the difference that it can
deal with negative values in the same fashion with positive values. The method is fully mechanical, i.e. no
ad hoc decisions have to be made.
7
The European national accounts transmission program requires different data transmission with different
deadlines. The gross value-added data is required at t+9 months with a breakdown of 10 activities, 21
activities, then at t + 21 months the aggregates breakdown in A64 activities should be transmitted.
14
supply and use tables on the national accounts data, but the national accounts macro
aggregates may be further revised after the dissemination of the supply and use tables
without updating the supply and use tables. Therefore the aggregation of 27 supply and
use tables does not match perfectly the sector and national accounts totals for one
reference year.
From the supply side, we consider that the output values per industries coming from the
summation are given. There is indeed not a full coverage of this detailed information via
the transmission programme coming from another part of the national accounts.
On the use side, macro data at industry level are available for compensation of employees
and value-added.
The other net taxes on production are calculated as the residual to match the output data
from the supply side and the value-added.
Totals of the final demand (final consumption, gross capital formation) are given by the
sector accounts data. The use table for the domestic output is corrected to match the
macro numbers.
For year 2008, the overall adjustment on value added was null. The same occurred for the
compensation of employees and for the gross operating surplus.
For the year 2009, the overall adjustment on value added was of +0.1%; compensation of
employees were adjusted by +0.1% as well as the gross operating surplus.
c. An input-output European table
The European symmetric product-by-product input-output tables are compiled from the
European supply and use tables. A transformation matrix is calculated according to
market shares. This market share matrix shows the relative amount of product output by
each industry. The transformation matrix is then multiplied with the use matrix to give
the symmetric input-output table. This transformation is based on the industry technology
assumption producing product-by-product tables (see Model B, Eurostat 2008 Manual of
Supply, Use and Input-Output Tables, p.349).
Supply Table
Industries Output Imports Supply
Products VT
q
m
q+m
T
Output
g
VT Supply matrix (product by industry)
q Column vector of product output (products)
m Column vector of imports (products)
gT Row vector of industry output (industries)
Use Table
Domestic products
Imported products
Taxes less subsidies
on products
Value-added
Total
Industries
Ud
Um
Final demand
Yd
Ym
W
gT
w
yT
15
Total
q
m
Ud Use matrix for intermediates - domestic production (product by industry)
Um Use matrix for intermediates - imports (product by industry)
U Use matrix for intermediates - domestic production and imports (product by industry)
Yd Final demand matrix - domestic production (product by category)
Ym Final demand matrix - imports (product by category)
Y Final demand matrix - domestic production and imports (product by category)
W Value added matrix (components by industry)
w Column vector of value added totals (components)
yT Row vector of final demand (categories)
The symmetric product by product input-output table distinguishes domestically
produced products from imported products.
Input-Output Table
Domestic products
Imported products
Value added
Total
Homogenous Prod. Branches
Sd
Sm
E
qT
Final demand
Yd
Ym
w
yT
Total
q
m
The transformation matrix is given by:
T = (diag(g))-1V
Hence intermediates and value-added of the product-by-product input-output table are:
S = UT
Sd = UdT
Sm = UmT
E = WT
With U= Ud +Um.
The number of available national symmetric input-output tables is not sufficient (9 out of
27 for the reference year 2008, seven for the reference year 2009) to transformed the
consolidated national input-output tables into an European input-output table.
The next transmission program maintains the transmission of symmetric input-output
tables every five years, with the first reference year of 2010. On the assumption of a full
compliance of Member States after September 2014 (date of implementation of the next
transmission program of national accounts) Eurostat would be able to compare the
consolidated national input-output product by product tables with the European inputoutput product by product table which was obtained by the transformation of the
European supply and use tables.
4.
DISSEMINATION OF THE EUROPEAN TABLES
The set of supply, use and input-output European tables comprises two areas: the
European Union (covering the 27 Member States) and the euro area (17 Member States),
the year 2008 and 2009 in NACE Rev 2 and CPA 2008, at a detailed level of 64 activities
and products and at the more aggregate level of 10 activities and products8.
The data for previous years 2000 to 2007 is disseminated in the old classification NACE
Rev 1.1 and CPA 2002 with the full details of 59 industries and products.
8
See list of the activities and products breakdown in 10 in Annex 3.
16
A projection of the European tables is available from 2000 to 2007 in NACE Rev 2 and
CPA 2008 at the aggregated level of 10 activities and products.
The data is available on line in the Eurostat database accessible under the following
address:
http://epp.eurostat.ec.europa.eu/portal/page/portal/esa95_supply_use_input_tables/data/datab
ase.
The European tables, as the national tables, are available in excel format on the dedicated
section.
http://epp.eurostat.ec.europa.eu/portal/page/portal/esa95_supply_use_input_tables/data/work
books.
Short publications based on European consolidated tables are available on Eurostat
website:
European exports 2000-2007: direct and indirect effects on employment and labour income in the
EU 27 and euro area - Issue number 36/2012
CO2 emissions induced by EU's final use of products are estimated to be 9 tonnes per capita - Issue
number 22/2011
17
5.
ANNEX 2: CORRESPONDENCE BETWEEN BALANCE OF PAYMENTS STATISTICS AND
CPA2008
Code CPA 2008
Label CPA 2008
BOP code and label
CPA_C33
Repair and installation services of machinery
and equipment
Constructions and construction works
269 Merchanting and other
services
249 Construction services
trade-related
Wholesale and retail trade and repair services of
motor vehicles and motorcycles
Land transport services and transport services
via pipelines
269 Merchanting and
services
220 Passenger on rail
trade-related
CPA_F
CPA_G45
CPA_H49
other
221 Freight on rail
224 Passenger on road
225 Freight on road
216 Freight on other transport
231 Pipeline transport
CPA_H50
Water transport services
207 Passenger transport on sea
208 Freight transport on sea
228 Passenger on inland waterway
229 Freight on inland waterway
CPA_H51
Air transport services
211 Passenger transport by air
212 Freight transport by air
CPA_H52
Warehousing
transportation
and
support
services
for
209 Supporting, auxiliary and other sea
transport services
213 Supporting, auxiliary and other air
transport services
222 Supporting, auxiliary and other rail
transport services
226 Supporting, auxiliary and other road
transport services
230 Supporting, auxiliary and other inland
waterway transport services
217 Other of other transport
CPA_H53
Postal and courier services
246 Postal and courier services
CPA_I
Accommodation and food services
236 Travel
CPA_J59_J60
Motion picture, video and television
programme
production
services,
sound
recording and music publishing; programming
and broadcasting services
288 Audio-visual and related services
CPA_J61
Telecommunications services
CPA_J62_J63
Computer programming, consultancy
related services; information services
CPA_K64
Financial services, except insurance and
pension funding
Insurance, reinsurance and pension funding
services, except compulsory social security
Services auxiliary to financial services and
insurance services
260 Financial services
CPA_L68B
Real estate services (excl Imputed rents)
284
Other
miscellaneous
professionnal and technical services
CPA_M69_M70
CPA_M72
Legal and accounting services; services of head
offices; management consulting services
Architectural and engineering services;
technical testing and analysis services
Scientific research and development services
274 Legal, accounting, management and public
relations services
280 Architectural, engineering and other
technical consultancy
279 Research and development services
CPA_M73
Advertising and market research services
278 Advertising, market research and public
opinion polling
266 Royalties and license fees
247 Telecommunication services
and
263 Computer services
264 Information services
CPA_K65
CPA_K66
CPA_M71
18
253 Insurance services (without 258 Auxiliary
services)
258 Auxiliary services
business,
CPA_M74_M75
CPA_N77
Other professional, scientific and technical
services; veterinary services
Rental and leasing services
284 Other miscellaneous business, professional
and technical services
272 Operational leasing services
CPA_N78
Employment services
CPA_N79
CPA_P85
Travel agency, tour operator and other
reservation services and related services
Security and investigation services; services to
buildings and landscape; office administrative,
office support and other business support
services
Education services
284 Other miscellaneous business, professional
and technical services
236 Travel
CPA_Q86
Human health services
896 Health services
CPA_R90-R92
Creative, arts and entertainment services;
library, archive, museum and other cultural
services; gambling
bettingamusement
services
Sporting
servicesand and
and
recreation services
Services
furnished
by
membership
organisations
Repair services of computers and personal and
household goods
Other personal services
897 Other on Other
recreational services
897 Other on Other
recreational services
897 Other on Other
recreational services
263 Computer services
personal,
cultural
personal,
cultural
personal,
cultural
897 Other on Other
recreational services
personal,
cultural
CPA_N80-N82
CPA_R93
CPA_S94
CPA_S95
CPA_S96
6.
284 Other miscellaneous business, professional
and technical services
895 Education services
ANNEX 3: BREAKDOWN INTO 10 ACTIVITIES AND PRODUCTS
No
NACE Rev. 2 sections
Description activity (first line) and product
1
A
2
B, C, D and E
2a
C
3
F
4
G, H and I
5
J
6
K
7
8
L
M and N
9
O, P, and Q
10
R, S, T and U
Agriculture, forestry and fishing
Products of agriculture, forestry and fishing
Mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply;
water supply; sewerage, waste management and remediation activities
Mining and quarrying; manufactured products; electricity, gas, steam and air conditioning;
water supply; sewerage, waste management and remediation services
of which: manufacturing
manufactured products
Construction
Constructions and construction works
Wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and
storage; accommodation and food service activities
Wholesale and retail trade services; repair services of motor vehicles and motorcycles;
transportation and storage services; accommodation and food services
Information and communication
Information and communication services
Financial and insurance activities
Financial and insurance services
Real estate activities
Professional, scientific and technical activities; administrative and support service activities
Professional, scientific and technical services; administrative and support services
Public administration and defence; compulsory social security; education; human health and
social work activities
Public administration and defence services; compulsory social security services; education
services; human health and social work services
Arts, entertainment and recreation, repair of household goods and other services
Arts, entertainment and recreation services, repair of household goods and other services
7.
REFERENCES
1. Eurostat (2008) Manual of Supply, Use and Input-Output Tables, ISSN 1977-0375.
2. Maaike C. Bouwmeester, Jan Oosterhaven and José M. Rueda-Cantuche (2012)
'Measuring the EU value added embodied in EU foreign exports by a consolidation
of 27 national supply and use tables for 2000-2007', presented at the 51st Annual
Meeting of the Western Regional Science Association, Kauai, Hawaii (US), 8-11
February 2012. Draft version available upon request to the authors.
19
3. Junius and Jan Oosterhaven (2003): “The Solution of Updating or Regionalizing a
Matrix with both Positive and Negative Entries”, Economic systems Research,
Volume 15, issue 1
4. Umed Temurshoev, Colin Webb and Norihiko Yamano (2011): 'Projection of
Supply and Use Tables: Methods and their Empirical Assessment', Economic
Systems Research, 23:1, 91-123.
5. Jose M. Rueda-Cantuche, Joerg Beutel, Isabelle Remond-Tiedrez and Antonio F.
Amores. 'A Set of Good Practice Guidelines in the Estimation of Use Tables at
Basic Prices and Valuation Matrices', presented at the 21st International InputOutput Conference, Kitakyushu (Japan), 9-12 July 2013. Draft version available
upon request to the authors.
20