Production and income relations in the Netherlands: A Semi — regional input — output analysis

116 Pages·1970·3.305 MB·English

by  J. H. F. Schilderinck, H. J. N. Sinner (auth.)

Production and income relations in the Netherlands
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II
o
Tilburg Studies on Economics
2
Edited by the
Tilburg Institute of Economics
--v.
the Tilburg School of Economics
Members of the Board
P.A. Verheijen, Chairman
H.O. Goldschmidt
Th.C.M.J. van de Klundert
Director of Research
J.J.J. Dalmulder
A study on Econometrics
Production and income relations
in the Netherlands
A semi - regional input - output analysis
J.H.P. Schilderinck and H.J.N. Sinner
Department of Econometrics,
Tilburg School of Economics
Preface by J.J.J. Dalmulder
Professor of Econometrics and
Mathematical Economics, Head of the
Department of Econometrics, Tilburg School
of Economics, Social Sciences and Law
1970
Tilburg University Press
The Netherlands
Tilburg University Press
is the result of concurring ideas of the
Tilburg Institute of Economics and the
publishing-houses Rotterdam University
Press and Wolters-Noordhoff Publishing,
Groningen, The Netherlands
ISBN-13 :978-90-23 7-2902-0 e-ISBN-13 :978-94-0 11-7962-1
DOl: 10.1007/978-94-011-7962-1
Copyright © 1970 by Universitaire Pers Rotterdam
No part of this book may be reproduced in any form, by print, photoprint,
microfilm or any other means, without written permission from the publisher.
Distributors: Rotterdam University Press, P.O. Box 1474, Rotterdam, The Netherlands.
Preface
In this book input-output analysis is applied to the regional economy of The
Netherlands. The re~ults are based on a publication of The Netherlands Central
Bureau of Statistics: Regional Accounts 1960, The Hague, Staatsuitgeverij, 1968.
Dr. Schilderinck and Mr. Sinner call special attention to the structure which
are concealed in the cumulated primary costs of the final demand categories.
Part I of the book deals particularly with a survey of this feature of input-output
analysis. Part II starts with comparing the production structure of each industry
in the eleven provinces of The Netherlands by means of semi-regional tables.
Next, authors analyse the structure of the induced income resulting from a
surplus or deficit of each industry on current final transactions per province.
Thanks to its methodical elaboration the book is a valuable guide to those
confronted with the problems of regional economic analysis.
J.J.J. Dalmulder
Contents
FOREWORD IX
LIST OF TABLES XI
PART ONE: THE INPUT-OUTPUT TABLE AS AN INSTRUMENT OF
ANALYSIS 1
List of symbols 3
1. Introduction 5
2. The input-output table 9
3. Coefficients of the input-output table 11
3.1 Technical coefficients 11
3.2 Interdependence coefficients and cumulated production coeffi-
cients 12
3.3 Input coefficients of cumulated production 15
3.4 Input coefficients of final demand 17
4. The example of a simple economic system 20
4.1 The input-output table and the technical coefficients 20
4.2 The input coefficients of cumulated production 23
4.3 The input coefficients of final demand 30
APPENDIX 1 The sum of the cumulated primary input coefficients 38
APPENDIX 2 Matrix rotation 40
PART TWO: PRODUCTION COSTS AND INCOME IN THE PRO-
VINCES OF THE NETHERLANDS 43
5. The provincial input-output table 45
6. Production costs per industry in the individual provinces of the
Netherlands 49
7. Incomes per industry from transactions between individual provinces 73
APPENDIX I Matrix inverse tables of the input-output tables for 1960 of
the various provinces 87
APPENDIX II Net value added in the balance of the individual provinces
with the rest of The Netherlands 101
Foreword
Input-output analysis is a method eminently suitable for the investigation of
economic structures.
The object of the investigation need not necessarily be a national economy. It
can also be provincial or regional economies, or the economy of a business.
What is necessary in each case is for the economy in question to be aggregated
into industries or departments, in respect of which profit and loss accounts are
drawn up, based on completely accurate descriptions and definitions which are
the same in the various industries or departments. This is an essential condition to
ensure that the individual profit and loss accounts may be incorporated in an
over-all table, the lines of which represent the profits (output, sales) of those
industries, and the colums the losses (input, purchases).
This over-all table is called an input-output table. In aggregated form it
represents the structure of the economy quantitatively, enabling various structure
analyses of that economy to be made (including analyses of the production
structure, the sales structure, the income structure, but also more detailed
analyses of the import and export structure, etc.)
This book is in two parts. The first part describes a few theoretical analysis
possibilities of the input-output table. The second part first compares the pro
duction structures of each industry of the Dutch economy in the eleven provinces
of the Netherlands. Next, a limited income structure analysis for the provinces
was drawn up. This required industrywise determination of the income structures
of the various provinces' balances with the rest of the Netherlands (the balance of
final expenditure, which may be either positive or negative) arising from the net
value added shares in the production processes of that industry, and in what
respects the individual provinces' income structures differ.
The data used in the investigation on which this book is based were taken from
'Regionale Rekeningen 1960', a report in two parts by the Dutch 'Centraal
Bureau voor de Statistiek'. However, the provincial input-output tables drawn up
by this Office are not strictly regional, for the output side of these provincial
tables relates not only to businesses located in that particular province, but also to
those located in other provinces. The input side - on the other hand - comprises
exclusively production data of enterprises in the province itself. As a result it is
not possible to indicate what influence the final demand of an industry in a
province has on the production and income structures within that province. It is
possible, however, to indicate the magnitude of the value added of cumulated
production and cumulated income in the combined provinces, which results from
the final demand of a province's industry, but these cumulated values are not split
up by provinces of origin.
Hence, although intra-provincial comparisons cannot be made, it is possible to
draw up interprovincial comparisons of production structure and income struc
IX
ture.
Thanks to its host of data, the publication of 'Regionale Rekeningen 1960'
provides numerous possibilities for more profound economic analyses at pro
vinciallevel.
Finally, the authors are indebted to Miss R.C.A.M. Homman for the accuracy
in typing the manuscript, and to Mr. M. Janssens and Mr. C. van Iersel for
processing the necessary data.
Tilburg, november, 1969.
x
List of tables
PART ONE
Table 1 Input-output table
Table 2 Technical coefficients
Table 3 Coefficients of cumulated production
Table 4 Production survey of the economic system
Table 5 Coefficients of final demand
Table 6 Survey of the primary input of final demand
PART TWO
Table 7 Shortened input-output table of the province of Groningen for
1960.
Table 8 Survey of the total cost of cumulated production per parcel of
final goods and services to a value of Dfl. 10,000 in the
different industries (1960)
Table 9a Production structure of the industry Agriculture-forestry
fishing in the different provinces of the Netherlands (1960)
Table 9b Production structure of the textile industry in the different
provinces of the Netherlands (1960)
Table 9c Production structure of the chemical industry in the different
provinces of the Netherlands (1960)
Table 9d Production structure of the industry Metal products and
machinery in the different provinces of the Netherlands (1960)
Table ge Production structure of the Construction industry in the
different provinces of the Netherlands (1960)
Table 9f production structure of the industry Hotels-cafes-restaurants in
the different provinces of the Netherlands (1960)
Table 10 Survey of the primary input of final demand in the province of
Groningen for 1960
Part one
The input-outputtable as an instrument
of analysis