Chapter IV: DATA PRESANTION, ANALYSIS, AND INTERPRETATION
4.1. The role of
information from SU/ I-O Tables in Economic Development
Supply and Use Framework is the part of National Accounts
System which focuses on the production in an economy. It reflects the
production of Industries in which Intermediate products and primary inputs
(labor, capital, and land) are required. Supply and Use tables show where goods
and services are produced and where they are used as intermediate consumptions,
final consumption, gross capital formation and export. Supply and Use Framework
provides the most important macroeconomic aggregates such as GDP, Value Added,
Consumption, Investment, Import and export. Supply and Use System is also an
adequate accounting framework for compiling consistent and reliable national
accounts data. Consequently, it is recommended that the compilation of national
accounts data both in current prices as well as in constant prices should be
based on a Supply and Use Framework (Eurostat, 2008: 17-23).
Table 4.1. A Simplified
Supply and Use Framework
|
|
Products
|
Industries
|
Final Uses
|
Total
|
|
Agricult.Products
|
Industrial Products
|
Services
|
Agri-culture
|
Industry
|
Service Activities
|
Final Con- sumption
|
Gross Capital Formation
|
Exports
|
|
Products
|
Agricult. products
|
|
Intermediate Consumption by Product and by
Industry
|
Final Uses by Product and By Category
|
Total Use
|
|
Industrial products
|
|
services
|
|
Industries
|
Agriculture
|
Output Of Industries by Product
|
|
|
Tot. Output
|
|
Industry
|
|
Service Activities
|
|
Value Added
|
|
Value Added
|
|
Tot VA
|
|
Imports
|
Total Imports By Product
|
|
|
Tot M
|
|
Total
|
Total Supply by Product
|
Total Output by Industry
|
Total Final Uses by Category
|
|
Not Applicable
Source: Eurostat, 2008, Eurostat Manual of
Supply, Use and Input-Output Tables, Methodological and Working Paper: 4-23
Supply and Use Framework can be an important tool for Rwanda
as a Developing country which want to redress its Economy towards Development,
because it offer main information for economic planning as they are stated in
the above table.
Supply and use tables serve not only statistical but also
analytical purposes, especially when Supply and Use table are transformed into
Symmetric Input-Output Tables. Compiling input-output tables is an analytical
step. The format of symmetric input-output tables can either be made on the
basis of an industry by industry or product by product classification, but the
following tables describes Product by Product Symmetric input-output table:
Table 4.2. A Simplified
Symmetric Input-Output Table (Product by Product)
|
Products
|
Products
|
Final Uses
|
Total
|
|
Agricult. Products
|
Industrial Products
|
Services
|
Final Con- sumption
|
Gross Capital Formation
|
Exports
|
|
Agricult. products
|
Intermediate Consumption by Product and by
Industry
|
Final Uses by Product and By Category
|
Total Use
|
|
Industrial products
|
|
services
|
|
Value Added
|
Value Added by Component
|
|
|
|
Import
|
Total Imports by Product
|
|
|
Supply
|
Total Supply
|
Total final use By Category
|
Source: Eurostat, 2008, Eurostat Manual of
Supply, Use and Input-Output Tables, Methodological and Working Paper: 4-23.
Input-Output analysis can be used to evaluate the impact of
different policies on macroeconomic variables such as gross domestic product,
employment, consumption, productivity, competitiveness, Unemployment,
Inflation, etc, as well as on the environment.
Moreover, input-output techniques allow quantitative impact
assessment of policy actions either for regional, national or international
levels. With that purpose, the National Institute of Statistics of Rwanda
should develop input-output based models as a tool to support the development
of Rwandan policies towards the Economic development. The latest progress on
the economic recovering in Rwanda shows that Rwanda need integrated data to
plan for its Economic development, and the development of Supply and Use
tables/Input-Output Table can play a significant role in economic analysis and
prevision, decision taking, and policy making for a sustained economic
development of Rwanda.
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