SMEs and Input-Output Tables of Pakistan. Presenter Irfan Ahmed, Ph.D University of Macerata, Italy

Transcription

1 SMEs and Input-Output Tables of Pakistan Presenter Irfan Ahmed, Ph.D University of Macerata, Italy

2 Outline IntroducCon Input-Output Analysis Input-Output Tables Dispersion Analysis

3 IntroducCon Overview SMEs operate in all business sectors and bolster the economies by generacng employment and contribucng significantly to the countries GDP (OED, 2009; Javaid, 2015) Major key sectors are wholesale, retail, trade, restaurants and hotel business, coson weaving, texcle, metal products, carpets, grain milling, jewelry and furniture etc. (Batool and Zulfiqar, 2013)

4 IntroducCon It is necessary to devise prudent policies to increase the efficiency of SMEs in terms of inputs and outputs. The input-output tables of the SMEs can be constructed to provide the basis for the mulcsectoral and mulc-structural analysis. Objec/ve of the Study This study constructs input-output tables for Pakistan and performs dispersion analysis to idencfy the key sectors of Pakistan s economy

5 Input-Output Analysis Input-Output (IO) analysis refers to the analyccal framework developed by a Nobel Laureate Professor Wassily LeonCef IO are used to invescgate the inter-industry dependencies in an economy Input-Output Model: Where x = (I A) -1 f = Lf x = vector of industry s output A = matrix of input coefficients f = vector of final demand by insctucons sectors

6 Input-Output Tables (IOT) Basic Framework of IOT adopted from Miller and Blair (2009) PRODUCERS AS CONSUMERS FINAL DEMAND Agric. Mining Const. Manuf. Trade Transp. Services Other Personal Consumption Expenditure Govt. Purchases of Goods & Services Gross Private Domestic Investment Net Exports of Goods & Services Agriculture Mining PRODUCERS Construction Manufacturing Trade Transportation Services Other Industry VALUE ADDED Employees Capital Government Employee compensation Profit-type income and capital consumption allowances Indirect business taxes GROSS DOMESTIC PRODUCT

7 Input-Output Tables for Pakistan ConstrucCon of IOT from USE and MAKE tables USE-MAKE Tables Activities Commodities Final Demand Total Output Activities Commodities Value Added Use table U W Make table V Total Input x' q' NotaCons used: U: Use matrix V: Make matrix q: Commodity total output x: Industry total outpout; F: Final demand of commodices; W: Value added by industry F x q

8 Input-Output Tables for Pakistan Two matrices B and D are calculated. Matrix B is calculated as follows: b ij = u ij / x j or The matrix D is calculated as follows: d ij = v ij / q j or Direct requirement (BD) matrix is obtained by mulcplying matrix B with matrix D To obtain the symmetric IOT, the value added matrix W is mulcplied with the matrix D thereby forming the full sequence of input-output tables characterizing the inputoutput model.

9 Input-Output Tables for Pakistan 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 DROW TOT a1 Wheat a2 Rice IRRI (irr) 1/ a3 Rice basmati (irr) 2/ a4 Cotton (irr) a5 Sugar cane (irr) a6 Other field crops a7 Fruits/vegetables a8 Livestock (cattle, milk) a9 Livestock (poultry) a10 Forestry a11 Fishing a12 Mining a13 Veg Oils a14 Wheat Milling a15 Rice Milling (Irri) a16 Rice Milling (Bas) a17 Sugar a18 Other food a19 Cotton gin (lint) a20 Cotton spin (yarn) a21 Cotton weave (cloth) a22 Knitwear a23 Garments a24 Oth Textiles a25 Leather a26 Wood a27 Chemicals a28 Fertilizer a29 Cement, bricks a30 Petroleum refining a31 Other Manufacturing a32 Energy a33 Construction a34 Trade-wholesale a35 Trade-retail a36 Trade-other (rest, hotel) a37 Transport-Rail a38 Transport-Road a39 Transport-Water a40 Transport-Air a41 Transport-Other (pipes) a42 Housing a43 Imputed Rent a44 Business Services a45 Health care a46 Education a47 Personal Services a48 Other Priv Services a49 Public Services a50 Finance and insurance TOTAL AT BASIC PRICE TRC DTAX MTAX ST AX TOTAL AT PURCHASERS' PRICE VALUE ADDED AT BASIC PRICE OUTPUT AT BASIC PRICE IMPORTS TOT ##### #####

10 Dispersion Analysis Forward Dispersion Petroleum refining Chemicals Business Services Other Manufacturing Mining Finance and insurance Housing Livestock (casle, milk) CoSon spin (yarn) CoSon (irr) Public Services Trade-other (rest, hotel) CoSon gin (lint) FerClizer Energy Garments Other field crops Wood Wheat ConstrucCon Sugar cane (irr) Veg Oils Rice Milling (Bas) Cement, bricks Forestry Rice basmac (irr) 2/3 Sugar Rice IRRI (irr) 1/3 Fruits/vegetables Other food CoSon weave (cloth) Rice Milling (Irri) Fishing Livestock (poultry) Oth TexCles Personal Services EducaCon Imputed Rent Knitwear Wheat Milling Other Priv Services Leather Health care Trade-wholesale Trade-retail Transport-Rail Transport-Road Transport-Water Transport-Air Transport-Other (pipes)

11 Dispersion Analysis Backward Dispersion Transport-Road Trade-retail Trade-wholesale Transport-Other (pipes) Transport-Rail Knitwear CoSon weave (cloth) CoSon spin (yarn) Transport-Air FerClizer Leather ConstrucCon Garments CoSon gin (lint) Oth TexCles Public Services Other Priv Services Health care Cement, bricks Rice basmac (irr) 2/3 Rice IRRI (irr) 1/3 Trade-other (rest, hotel) Rice Milling (Bas) Sugar Energy Wheat Milling Veg Oils CoSon (irr) Chemicals Sugar cane (irr) Rice Milling (Irri) Petroleum refining Mining Other Manufacturing Transport-Water Other field crops Fishing Other food Wheat Imputed Rent Personal Services Fruits/vegetables Livestock (poultry) Housing Livestock (casle, milk) Wood Forestry Business Services EducaCon Finance and insurance

12 Dispersion Analysis This study presents the construccon of Input- Output tables (IOT) for Pakistan. Dispersion analysis is conducted to idencfy the key sectors of the economy. The sectors in IOT can be disaggregated into small, medium and large enterprises to present the inter-linkages of SMEs with other large scale sectors of the economy.

13 Thank You