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

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

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

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)

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

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

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

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

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.

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 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 0 380 a2 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 0 142 a3 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 0 126 a4 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 1 190 a5 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 0 140 a6 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 0 310 a7 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 12 219 a8 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 1836 a9 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 0 110 a10 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 40 a11 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 11 101 a12 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 0 978 a13 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 0 399 a14 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 1008 a15 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 52 658 a16 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 75 695 a17 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 6 409 a18 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 24 240 a19 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 0 260 a20 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 73 420 a21 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 11 286 329 a22 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 24 103 138 a23 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 83 904 a24 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 81 220 a25 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 61 887 a26 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 0 125 a27 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 1178 a28 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 1 149 a29 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 0 274 a30 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 2215 a31 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 3501 a32 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 0 293 a33 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 1074 a34 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 0 a35 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 2 a36 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 0 818 a37 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 6 a38 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 0 304 a39 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 34 a40 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 8 245 253 a41 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 0 a42 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 0 252 a43 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 56 a44 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 1816 a45 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 0 201 a46 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 54 a47 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 84 a48 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 86 499 a49 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 1449 a50 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 TOTAL AT BASIC PRICE TRC DTAX MTAX ST AX TOTAL AT PURCHASERS' PRICE VALUE ADDED AT BASIC PRICE OUTPUT AT BASIC PRICE IMPORTS TOT 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 ##### 1506 0 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 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 0 3 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 0 2 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 0 83 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 ##### 1506 234 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 85 530 555 317 142 126 190 140 298 214 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 582 63 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 0 380 142 126 190 140 310 219 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

Dispersion Analysis Forward Dispersion 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 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)

Dispersion Analysis Backward Dispersion 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 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

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.

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